Unilever And The Failure Of Corporate Social Responsibility
Wayne Winegarden Contributor
EconoSTATSContributor Group
Opinion
GUEST POST WRITTEN BY
Tom Borelli
This article is more than 2 years old.
·
·
·
Paul Polman, Chief Executive Officer, Unilever speaks on a panel during the annual Clinton Global Initiative on September 21, 2016 in New York City. (Photo by Stephanie Keith/Getty Images)
The stunning election of Donald Trump as president and the surprising Brexit decision demonstrates citizens can disrupt the elite political establishment when it fails to represent the needs of the people.
On a larger scale, it means politicians and governments can be held accountable for putting their self-serving goals before those that put them in power.
Shareholders also need to take note and rally to toss CEOs when they put their personal agenda before the interests of investors.
Starbucks CEO Howard Schultz put personal political views before shareholders when he aggressively challenged a number of policies promoted by President Trump in a letter to employees. The backlash from Trump supporters was swift and #boycottStarbucks became a top trending hashtag on Twitter.
The damage Schultz is causing by putting himself before shareholders pales in comparison to Unilever CEO Paul Polman.
Polman is a poster child of a CEO gone rogue.
Today In: Opinion
Since leading the company in 2009, Unilever has suffered financial and public relations damage from Polman’s disastrous leadership.
At the core of Polman’s problem is his eagerness to put superficial feel good policies ahead of sound business decisions and he is not shy about touting his twisted priorities.
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In Polman’s world, “as CEO of Unilever, my personal mission is to galvanize our company to be an effective force for good.”
While Polman seeks approval from global elites and basks in the glory of being called a “sustainability evangelist’” and a world saver for his roles in combating climate change and efforts to address social issues, Unilever has gone off the rails.
Despite Polman’s efforts to make Unilever a good corporate citizen, Unilever was mired in environmental and sexual harassment controversies.
Last year, Unilever settled with almost 600 workers in India over mercury exposure from a now closed thermometer plant following a 2006 lawsuit over exposure to the toxic element. The issue reached global attention from an Indian rapper’s song “Kodaikanal Won’t” that modified Nicki Minaj tune “Amaconda,” with lyrics addressing the mercury contamination problem.
A 2011 Irish Times story exposed sexual harassment claims from African workers that said they had to bribe supervisors to stop them from unwanted advances.
Polman’s efforts ...
Week 4 Discussion Responses – Organizational Behavior
Week 4 Discussion - Hiring Ron Johnson
By I,H
Hiring Ron Johnson as CEO for JC Penny Company seemed like the ideal solution to the organization’s struggles. Unfortunately, bringing on the former Apple executive led to a lack of evaluation of other alternatives. McShane & Von Glinow (2015) mention that when decision makers find an opportunity like being able to hire Ron Johnson, there is no need to consider several alternatives because this opportunity is the solution. JCP stakeholders believed that Ron could fix the company and his work at Apple only made him that much more attractive. JCP’s largest shareholder, William Ackman confirms this when he said, “Ron Johnson’s record of retailing success makes him the ideal leader to fix JCP” (McShane & Von Glinow, 2015, p. 187).
A lot of what we see in the text about JCP’s miss with Ron Johnson is derived from Ron’s previous strategies not being applicable at JCP. Considering his approach on JCP’s issues, the actual issues remained vague and what resulted was a solution fixed problem identification rather than a solid problem being revealed. As described in the text, Ron and his team looked at the JCP problem in terms of solutions that worked at Apple (McShane& Von Glinow, 2015). There was never any investment in customer feedback, employee insight and opinion, or prototyping by testing his no coupon and no sale idea in select stores. From the marshmallow challenge Ted clip, we can see how even the top executives are blinded by thinking there is only one answer and focusing all of their energy on that can lead to an oh-oh moment (Wujec, n.d.).
Defending his approach with the notion that his solutions and ideas worked at Apple proved to completely backfire on Ron and his team. The missing piece here is creativity. Linda Hill points out that innovation is all about collective genius through a paradox that can unleash talents and harnesses them to be useful (Hill, n.d). Ron needed to allow those who know and understand the JCP customers to engage in the creative process of preparation, incubation, illumination and verification (McShane & Von Glinow, 2015). This would have of allowed those closer to the everyday detail that runs the retail department store to prepare and think about what the actual problem is and thoroughly think about what decisions can be made. Spending time on what matters and not focusing so much on the issues would have of led to the illumination, the ah-ha moment where the real problem could have of been identified and then realistic solutions could be experimented that would work for JCP not necessarily Apple.
-Isamar
References
Hill, L. (n.d.). Retrieved May 24, 2017, from https://www.ted.com/talks/linda_hill_how_to_manage_for_collective_creativity
McShane, S. L., & Von Glinow, M. (2015). Organizational Behavior emerging knowledge, global reality (7th ed.). New York, NY: McGraw-Hill Education.
Wujec, T. (n.d.). Retr.
Week 4 Discussion Responses – Organizational Behavior
Week 4 Discussion - Hiring Ron Johnson
By I,H
Hiring Ron Johnson as CEO for JC Penny Company seemed like the ideal solution to the organization’s struggles. Unfortunately, bringing on the former Apple executive led to a lack of evaluation of other alternatives. McShane & Von Glinow (2015) mention that when decision makers find an opportunity like being able to hire Ron Johnson, there is no need to consider several alternatives because this opportunity is the solution. JCP stakeholders believed that Ron could fix the company and his work at Apple only made him that much more attractive. JCP’s largest shareholder, William Ackman confirms this when he said, “Ron Johnson’s record of retailing success makes him the ideal leader to fix JCP” (McShane & Von Glinow, 2015, p. 187).
A lot of what we see in the text about JCP’s miss with Ron Johnson is derived from Ron’s previous strategies not being applicable at JCP. Considering his approach on JCP’s issues, the actual issues remained vague and what resulted was a solution fixed problem identification rather than a solid problem being revealed. As described in the text, Ron and his team looked at the JCP problem in terms of solutions that worked at Apple (McShane& Von Glinow, 2015). There was never any investment in customer feedback, employee insight and opinion, or prototyping by testing his no coupon and no sale idea in select stores. From the marshmallow challenge Ted clip, we can see how even the top executives are blinded by thinking there is only one answer and focusing all of their energy on that can lead to an oh-oh moment (Wujec, n.d.).
Defending his approach with the notion that his solutions and ideas worked at Apple proved to completely backfire on Ron and his team. The missing piece here is creativity. Linda Hill points out that innovation is all about collective genius through a paradox that can unleash talents and harnesses them to be useful (Hill, n.d). Ron needed to allow those who know and understand the JCP customers to engage in the creative process of preparation, incubation, illumination and verification (McShane & Von Glinow, 2015). This would have of allowed those closer to the everyday detail that runs the retail department store to prepare and think about what the actual problem is and thoroughly think about what decisions can be made. Spending time on what matters and not focusing so much on the issues would have of led to the illumination, the ah-ha moment where the real problem could have of been identified and then realistic solutions could be experimented that would work for JCP not necessarily Apple.
-Isamar
References
Hill, L. (n.d.). Retrieved May 24, 2017, from https://www.ted.com/talks/linda_hill_how_to_manage_for_collective_creativity
McShane, S. L., & Von Glinow, M. (2015). Organizational Behavior emerging knowledge, global reality (7th ed.). New York, NY: McGraw-Hill Education.
Wujec, T. (n.d.). Retr.
201211 IASA theInterpreter: Social Media - Beware the IcebergSteven Callahan
Article discusses the hidden risks of social media and how all companies, even those not consciously participating in social media networks, already face risks that have to be managed.
Máxima audiencia para la venta directa. El último modelo de negocio social. Networkempresas.com
Por qué ahora es el momento de la máxima audiencia para la venta directa. El último modelo de negocio social -
Un suplemento especial de Wall Street journal de Noticias de la venta directa
1) Indian food preparation versus Western food preparation.(2).docxmonicafrancis71118
1) Indian food preparation versus Western food preparation.
(2) Values and customs that might affect opinions about microwave ovens.
(3) The effects of competition in the market.
Answer the questions and consider its affects in India’s marketing
This article was written in year 2000, when the Internet saw a massive growth from its
birth from year 1994. It is said that: International communication network (W.W.W) is the
second greatest invention of mankind, after the first one is language.
According to the articles, more and more businesses are discovering the W.W.W as a
fundamental communication tool used to conduct daily business. Larger and small companies
are embracing the web to communicate with current and prospective customers in a same cost
and ease as in their countries. The internet Era is changing the way people doing business. It
hasthe fastest growing and most innovative componentsthat make them center to the paradigm
of marketing.
In some way, digital marketing is different with the traditional networking as it shifts
from “one-way” to “two-way” information flows between companies and consumers. Digital
is excellent way to broaden your network “one- to- many” and create great opportunities to
establish relationship with customers in a mutual communication. Never before has it been so
easy to access information on a worldwide basic and never before so many people been
exposed to and used a single information sharing system. Therefore, many firms have to
rethink their strategy and place more emphasis on digital world.
Reza Kiani also pointed out the many marketing opportunities on the Web as a twoway Communication, in four logical situations: Company-to-consumer, consumer-tocompany, consumer-to-consumer, company-to-company.
(1) Company-to-consumer: According to Morgan (1996), marketers can use interactive media
to provide higher services and lower cost by delivering up-dated product and non-product
related information. Compare to traditional marketing communication channel, digital
marketing is faster, less expensive, highly immediate communication, round the clock and
global. It offers wider and deeper material and richer advertisement content.
Assignment 1 3
Many articles pointed out the 3 basic advantages to business using the Web as:
Addressability, Flexibility and accessibility. The strong “Addressability” of the web is
the primary marketing resources for many firm to define target market, with the “
Flexibility”, customer will shape the firms that serve them.
(2) Consumer-to-company: The consumer is now an active participant, and a partner in the
production. Marketing today has learned that the probability of purchase by a repeat buyer
is much greater than that by a randomly mailed house-hold who has never been a customer.
As the product or service becomes customeised, the consumer faces serious problems to
identify the product or service s/he desires. To deal with this difficulty, Blattnerd.
Gafanomics - The Quarterly - Episode 1 (Q1FY19)Fabernovel
Financial analysis of some of the most disruptive Tech companies in the world. This document aims to provide you with some major insights concerning the financial markets and the most disruptive innovations for the first quarter of the financial year 2019.
Publishing ProblemsAll businesses must be concerned with t.docxleonorepour284
Publishing Problems
All businesses must be concerned with the rapid pace of change we face today. No company is secure, not even the largest and most profitable. Coping with change has been a business concern since people began doing business. Recall how the arrival of automobiles put buggy whip manufacturers out of business.
Today’s pace of change is unprecedented. Consider what has happened in the retailing arena. Online retail sales went from nearly nothing in the mid-1990s to a projected $242 billion in 2010. Traditional retailing stores have been heavily affected. eBay has become a retailing behemoth enabling individuals to buy and sell goods online with total annual sales in the billions of dollars.
Or consider the fate of many dot-coms. One of the most spectacular dot-com stories – the rise and fall of AOL – illustrates how technology (telephone-based online computing) created a huge success story, and how technology (Internet email) led to a reversal of this success.
A major goal of strategic planning is to anticipate environmental changes (economic, business, political, governmental, social) and prepare the organization for dealing with them. Clearly, in this age of rapid change, all business entities should engage in some measure of strategic planning. Without it, they will have difficulty negotiating today’s turbulent business environment.
One industry that is currently suffering the destabilizing consequences of the Internet revolution is the publishing industry. Included here are textbook publishers, trade book publishers, newspaper publishers, and magazine publishers. All publishers are facing serious challenges. Revenues are down across the board. If these challenges are not handled properly, there is a good chance that a large portion of the publishing industry as we now know it will go out of business.
One challenge publishers face is dealing with the fact that information traditionally controlled by them is now freely available to the public through the Internet. Not long ago, if a homeowner wanted to place tiles on his bathroom floor, he would purchase a How-to book. Today, he goes online and encounters several sources that show how to lay tile – some even provide a video clip to illustrate the process. As a result, sales of How-to books are plunging.
Case Study
Susan Feinman is publisher of
The Chronicle Gazette
, a leading newspaper in a major metropolitan area. Her paper has a paid circulation of 225,000 customers. It is a first-rate newspaper and over the years, its writers have won awards for their work.
Susan’s big problem is that there has been a steady decline in subscriptions to the newspaper. In the past eight years, subscriptions have fallen by a total of 35%. Because subscriptions have fallen, advertising revenue has also dropped – by 28%. Susan knows that declining subscriptions and revenues are affecting the entire publishing industry. Even the great newspapers – such as the
New Yor.
The Ogilvy Consulting Trends for 2019 report is here!
In its sixth edition, this session features the most important trends for businesses and consumers in 2019, and includes recommendations on what you can do to take action and adapt quickly.
Why most of the western digital firms failed in ChinaAshrith Grandi
Why western digital firms like Google, Amazon couldn't penetrate into Chinese market.
Is it because of the government restrictions on foreign enterprises or is the companies poor understanding of the Chinese market?
Death by thousand cuts.
Written AssignmentPlease provide a comprehensive answer to the fol.docxouldparis
Written Assignment
Please provide a comprehensive answer to the following two questions:
1) Which were the main causes of the Great Depression?
2) Why did the Great Depression last so long?
Indications:
• To answer these questions, please start with our textbook information and then use at least one more reputable source for your research.
• Please use the bibliographic information recommended by the Modern Language Association (MLA).
• When typing your report use Font 12, Double Space, and Normal Margins
• Length: at least five pages.
• The day of the final exam.
.
Writing Piece AnalysisWhat do you think are some steps this writ.docxouldparis
Writing Piece Analysis
What do you think are some steps this writer took to create this piece besides the writing steps we reviewed?
Identify:
The topic:
The thesis statement:
Provide 4 pieces of evidence that support the thesis statement:
How does the author conclude this piece? (What is the conclusion?)
Homework:
Find a non-fiction piece of writing and use the questions above to analyze it. Bring in article along with analysis next week.
.
Written Assignment 1 Biology and Technology in the Real World.docxouldparis
W
ritten Assignment 1: Biology and Technology in the Real World
Background
:
This assignment will give you the opportunity to participate in ongoing scientific research. For the past several years, I have been involved in ecological research in old-growth forests in Wisconsin. In many areas the forest floor is dominated by a grasslike species, Pennsylvania sedge (
Carex pensylvanica
). The sedge may exclude other ground species by interspecific competition, which may decrease the number of species in an area, which is a main component of biodiversity. The Penn sedge "lawns" are probably caused by selective herbivory by an abundance of white-tailed deer. The deer do not like the sedge but consume most other ground plants. [Please read OLI Module 51 for information on interspecific competition & herbivory and Module 53 on biodiversity.]
Another problem in the forests is that dominant trees, such as white pine and sugar maple, do not show successful reproduction to replace the old pines and maples that die, which leads to the question - does Pennsylvania sedge decrease the establishment of tree seedlings? With support from a UMUC Faculty Research Grant to create this assignment, I collected data last summer that you can use to test three hypotheses-
Hypotheses
A. Pennsylvania sedge inhibits regeneration of white pine
B. Pennsylvania sedge inhibits regeneration of sugar maple
C. Pennsylvania sedge decreases biodiversity
Choice of Study Site - Practice with Google Earth:
Most, if not all, students are familiar with the use of GPS (Global Positioning System) to navigate. I assume that many of you are also familiar with Google Earth, an interactive aerial map of the globe. It is a very useful tool. When we lived in Okinawa, we chose a home to rent before our 2011 move to Rhode Island by investigating the property and its environs on Google Earth, and are very happy with our choice. Google Earth can be downloaded free at earth.google.com
I also make use of Google Earth in choosing study sites for my research, especially when I was searching for remaining old-growth white pine forests in Upper Michigan. For practice with this relatively-new technology, I have included an exercise involving Google Earth with this assignment (under "Report" below).
Methods of Data Collection
Data were collected during 2-4 August 2013 in a study plot within a forest dominated by trees of sugar maple, red oak, and red maple at Trout Lake Cathedral Point, Vilas County, Wisconsin (Figure 1). All ground species were identified in 2- x 2-meter quadrats that were positioned as a strip of adjacent quadrats in transects of adjacent across the plot. In ecology, a quadrat is defined as a sample area and a transect is a sample line. Figures 2 and 3 illustrate the method of transects of continuous quadrats. Within each of the sample quadrats, the percent cover of Penn sedge was estimated and all established tree seedlings (defined as > 20 cm in .
Writing question What are the sources of homophobia in South korea.docxouldparis
Writing question: What are the sources of homophobia in "South korean culture”?
"korean culture” is the culture korean were born into and brought up in. as well as the general culture around you.
Homophobia – hatred of gay people – is in all cultures, though it is receding very quickly in some of them. Where does in come from in Korean culture?
Further, is the attitude in your age group the same as that in that culture in general? Do you and your friends think the same way? Why or why no? And what do you expect for the future?
As always, make sure to discuss the role of the media in all of this.
No plagiarism.
Essays should be about two to three pages double-spaced, about 500-700 words.
.
Writing one pages for each of the topicPlease separate Plea.docxouldparis
Writing one pages for each
of the topic
Please
separate
Please on time
Topic 1-
The self in interpersonal communication.
Topic
2-
Impression Formation.
Topic 3- Culture,Gender, and Listening
Topic
4-
Listening Barriers.
Please focus about the grammar , MLA style and
simple words.
Each paper should be organized with a clear beginning, middle, and end. Be sure to give an overview of the paper's main ideas in the introduction and summarize these main ideas at the end of the paper.
Please no
Plagiarism
.
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Article discusses the hidden risks of social media and how all companies, even those not consciously participating in social media networks, already face risks that have to be managed.
Máxima audiencia para la venta directa. El último modelo de negocio social. Networkempresas.com
Por qué ahora es el momento de la máxima audiencia para la venta directa. El último modelo de negocio social -
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1) Indian food preparation versus Western food preparation.(2).docxmonicafrancis71118
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(2) Values and customs that might affect opinions about microwave ovens.
(3) The effects of competition in the market.
Answer the questions and consider its affects in India’s marketing
This article was written in year 2000, when the Internet saw a massive growth from its
birth from year 1994. It is said that: International communication network (W.W.W) is the
second greatest invention of mankind, after the first one is language.
According to the articles, more and more businesses are discovering the W.W.W as a
fundamental communication tool used to conduct daily business. Larger and small companies
are embracing the web to communicate with current and prospective customers in a same cost
and ease as in their countries. The internet Era is changing the way people doing business. It
hasthe fastest growing and most innovative componentsthat make them center to the paradigm
of marketing.
In some way, digital marketing is different with the traditional networking as it shifts
from “one-way” to “two-way” information flows between companies and consumers. Digital
is excellent way to broaden your network “one- to- many” and create great opportunities to
establish relationship with customers in a mutual communication. Never before has it been so
easy to access information on a worldwide basic and never before so many people been
exposed to and used a single information sharing system. Therefore, many firms have to
rethink their strategy and place more emphasis on digital world.
Reza Kiani also pointed out the many marketing opportunities on the Web as a twoway Communication, in four logical situations: Company-to-consumer, consumer-tocompany, consumer-to-consumer, company-to-company.
(1) Company-to-consumer: According to Morgan (1996), marketers can use interactive media
to provide higher services and lower cost by delivering up-dated product and non-product
related information. Compare to traditional marketing communication channel, digital
marketing is faster, less expensive, highly immediate communication, round the clock and
global. It offers wider and deeper material and richer advertisement content.
Assignment 1 3
Many articles pointed out the 3 basic advantages to business using the Web as:
Addressability, Flexibility and accessibility. The strong “Addressability” of the web is
the primary marketing resources for many firm to define target market, with the “
Flexibility”, customer will shape the firms that serve them.
(2) Consumer-to-company: The consumer is now an active participant, and a partner in the
production. Marketing today has learned that the probability of purchase by a repeat buyer
is much greater than that by a randomly mailed house-hold who has never been a customer.
As the product or service becomes customeised, the consumer faces serious problems to
identify the product or service s/he desires. To deal with this difficulty, Blattnerd.
Gafanomics - The Quarterly - Episode 1 (Q1FY19)Fabernovel
Financial analysis of some of the most disruptive Tech companies in the world. This document aims to provide you with some major insights concerning the financial markets and the most disruptive innovations for the first quarter of the financial year 2019.
Publishing ProblemsAll businesses must be concerned with t.docxleonorepour284
Publishing Problems
All businesses must be concerned with the rapid pace of change we face today. No company is secure, not even the largest and most profitable. Coping with change has been a business concern since people began doing business. Recall how the arrival of automobiles put buggy whip manufacturers out of business.
Today’s pace of change is unprecedented. Consider what has happened in the retailing arena. Online retail sales went from nearly nothing in the mid-1990s to a projected $242 billion in 2010. Traditional retailing stores have been heavily affected. eBay has become a retailing behemoth enabling individuals to buy and sell goods online with total annual sales in the billions of dollars.
Or consider the fate of many dot-coms. One of the most spectacular dot-com stories – the rise and fall of AOL – illustrates how technology (telephone-based online computing) created a huge success story, and how technology (Internet email) led to a reversal of this success.
A major goal of strategic planning is to anticipate environmental changes (economic, business, political, governmental, social) and prepare the organization for dealing with them. Clearly, in this age of rapid change, all business entities should engage in some measure of strategic planning. Without it, they will have difficulty negotiating today’s turbulent business environment.
One industry that is currently suffering the destabilizing consequences of the Internet revolution is the publishing industry. Included here are textbook publishers, trade book publishers, newspaper publishers, and magazine publishers. All publishers are facing serious challenges. Revenues are down across the board. If these challenges are not handled properly, there is a good chance that a large portion of the publishing industry as we now know it will go out of business.
One challenge publishers face is dealing with the fact that information traditionally controlled by them is now freely available to the public through the Internet. Not long ago, if a homeowner wanted to place tiles on his bathroom floor, he would purchase a How-to book. Today, he goes online and encounters several sources that show how to lay tile – some even provide a video clip to illustrate the process. As a result, sales of How-to books are plunging.
Case Study
Susan Feinman is publisher of
The Chronicle Gazette
, a leading newspaper in a major metropolitan area. Her paper has a paid circulation of 225,000 customers. It is a first-rate newspaper and over the years, its writers have won awards for their work.
Susan’s big problem is that there has been a steady decline in subscriptions to the newspaper. In the past eight years, subscriptions have fallen by a total of 35%. Because subscriptions have fallen, advertising revenue has also dropped – by 28%. Susan knows that declining subscriptions and revenues are affecting the entire publishing industry. Even the great newspapers – such as the
New Yor.
The Ogilvy Consulting Trends for 2019 report is here!
In its sixth edition, this session features the most important trends for businesses and consumers in 2019, and includes recommendations on what you can do to take action and adapt quickly.
Why most of the western digital firms failed in ChinaAshrith Grandi
Why western digital firms like Google, Amazon couldn't penetrate into Chinese market.
Is it because of the government restrictions on foreign enterprises or is the companies poor understanding of the Chinese market?
Death by thousand cuts.
Similar to Unilever And The Failure Of Corporate Social ResponsibilityWay.docx (17)
Written AssignmentPlease provide a comprehensive answer to the fol.docxouldparis
Written Assignment
Please provide a comprehensive answer to the following two questions:
1) Which were the main causes of the Great Depression?
2) Why did the Great Depression last so long?
Indications:
• To answer these questions, please start with our textbook information and then use at least one more reputable source for your research.
• Please use the bibliographic information recommended by the Modern Language Association (MLA).
• When typing your report use Font 12, Double Space, and Normal Margins
• Length: at least five pages.
• The day of the final exam.
.
Writing Piece AnalysisWhat do you think are some steps this writ.docxouldparis
Writing Piece Analysis
What do you think are some steps this writer took to create this piece besides the writing steps we reviewed?
Identify:
The topic:
The thesis statement:
Provide 4 pieces of evidence that support the thesis statement:
How does the author conclude this piece? (What is the conclusion?)
Homework:
Find a non-fiction piece of writing and use the questions above to analyze it. Bring in article along with analysis next week.
.
Written Assignment 1 Biology and Technology in the Real World.docxouldparis
W
ritten Assignment 1: Biology and Technology in the Real World
Background
:
This assignment will give you the opportunity to participate in ongoing scientific research. For the past several years, I have been involved in ecological research in old-growth forests in Wisconsin. In many areas the forest floor is dominated by a grasslike species, Pennsylvania sedge (
Carex pensylvanica
). The sedge may exclude other ground species by interspecific competition, which may decrease the number of species in an area, which is a main component of biodiversity. The Penn sedge "lawns" are probably caused by selective herbivory by an abundance of white-tailed deer. The deer do not like the sedge but consume most other ground plants. [Please read OLI Module 51 for information on interspecific competition & herbivory and Module 53 on biodiversity.]
Another problem in the forests is that dominant trees, such as white pine and sugar maple, do not show successful reproduction to replace the old pines and maples that die, which leads to the question - does Pennsylvania sedge decrease the establishment of tree seedlings? With support from a UMUC Faculty Research Grant to create this assignment, I collected data last summer that you can use to test three hypotheses-
Hypotheses
A. Pennsylvania sedge inhibits regeneration of white pine
B. Pennsylvania sedge inhibits regeneration of sugar maple
C. Pennsylvania sedge decreases biodiversity
Choice of Study Site - Practice with Google Earth:
Most, if not all, students are familiar with the use of GPS (Global Positioning System) to navigate. I assume that many of you are also familiar with Google Earth, an interactive aerial map of the globe. It is a very useful tool. When we lived in Okinawa, we chose a home to rent before our 2011 move to Rhode Island by investigating the property and its environs on Google Earth, and are very happy with our choice. Google Earth can be downloaded free at earth.google.com
I also make use of Google Earth in choosing study sites for my research, especially when I was searching for remaining old-growth white pine forests in Upper Michigan. For practice with this relatively-new technology, I have included an exercise involving Google Earth with this assignment (under "Report" below).
Methods of Data Collection
Data were collected during 2-4 August 2013 in a study plot within a forest dominated by trees of sugar maple, red oak, and red maple at Trout Lake Cathedral Point, Vilas County, Wisconsin (Figure 1). All ground species were identified in 2- x 2-meter quadrats that were positioned as a strip of adjacent quadrats in transects of adjacent across the plot. In ecology, a quadrat is defined as a sample area and a transect is a sample line. Figures 2 and 3 illustrate the method of transects of continuous quadrats. Within each of the sample quadrats, the percent cover of Penn sedge was estimated and all established tree seedlings (defined as > 20 cm in .
Writing question What are the sources of homophobia in South korea.docxouldparis
Writing question: What are the sources of homophobia in "South korean culture”?
"korean culture” is the culture korean were born into and brought up in. as well as the general culture around you.
Homophobia – hatred of gay people – is in all cultures, though it is receding very quickly in some of them. Where does in come from in Korean culture?
Further, is the attitude in your age group the same as that in that culture in general? Do you and your friends think the same way? Why or why no? And what do you expect for the future?
As always, make sure to discuss the role of the media in all of this.
No plagiarism.
Essays should be about two to three pages double-spaced, about 500-700 words.
.
Writing one pages for each of the topicPlease separate Plea.docxouldparis
Writing one pages for each
of the topic
Please
separate
Please on time
Topic 1-
The self in interpersonal communication.
Topic
2-
Impression Formation.
Topic 3- Culture,Gender, and Listening
Topic
4-
Listening Barriers.
Please focus about the grammar , MLA style and
simple words.
Each paper should be organized with a clear beginning, middle, and end. Be sure to give an overview of the paper's main ideas in the introduction and summarize these main ideas at the end of the paper.
Please no
Plagiarism
.
Writing one pages for each of the topicTopic 1- Why Study .docxouldparis
Writing one pages for each
of the topic
Topic 1- Why Study
Interpersonal Communication
Topic
2- The Nature of Interpersonal Communication
Topic 3- Culture
Topic
4-
Culture Differences
Please focus about the grammar , MLA style and simple words.
Each paper should be organized with a clear beginning, middle, and end. Be sure to give an overview of the paper's main ideas in the introduction and summarize these main ideas at the end of the paper.
Please no
Plagiarism
.
Writing assignment to be completed in APA format, double spaced, and.docxouldparis
Writing assignment to be completed in APA format, double spaced, and 1-2 pages in length. In your response, be certain
to answer all questions clearly and concisely.
Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad.
.
Writing Assignment (Part 1) Identifying the HypothesisDue in Week.docxouldparis
Writing Assignment (Part 1): Identifying the Hypothesis
Due in Week 3 and worth 50 points
Consider a social issue in which you are interested. It could be human freedom, sexuality, deviance, crime, social mobility, poverty, education, aging, or another similar issue. Select a specific hypothesis that you will evaluate against the available evidence from your library / Internet research.
The specific course learning outcomes associated with this assignment are:
Apply the sociological perspective to a variety of socioeconomic and political problems.
Use technology and information resources to research issues in sociology.
Write clearly and concisely about sociology using proper writing mechanics.
NOTE: I want to chose human freedom as a social issue for this paper. Only one or two pages at least.
Thanks
.
Write a draft of no more than 1,800 words of the strategic plan fo.docxouldparis
Write
a draft of no more than 1,800 words of the strategic plan for Macy's, including the following:
Implementation plan
Objectives
Functional tactics
Action items
Milestones and a deadline
Tasks and task ownership
Resource allocation
Any required organizational change management strategies that would enhance successful implementation
Key success factors, budget, and forecasted financials, including a break-even chart
Risk management plan, including contingency plans for identified risks
Format
your plan consistent with APA guidelines.
.
Writing a Rhetorical CritiqueAudience and PurposeWho is the .docxouldparis
Writing a Rhetorical Critique
Audience and Purpose
Who is the intended audience?
What is the writer’s purpose?
How well does the text suit the particular purpose?
Influence of Genre on the Shape of the Text
How has the genre affected the author’s style, structure, and use of evidence?
Author’s Style
How do the author’s language choices and sentence length and complexity contribute to the impact of the text?
Appeal to logos, the logic of the argument
How well has the author created a reasonable, logically structured argument?
Use of evidence
How reputable, relevant, current, sufficient, and representative is the evidence?
Appeal to ethos and the credibility of the author
How well does the author persuade readers that he/she is knowledgeable, reliable, credible, and trustworthy?
Appeal to pathos
How well does the author appeal to readers’ emotions, sympathies, and values?
Author’s angle of vision
How much does the author’s angle of vision or interpretive filter dominate the text, influencing what is emphasized or omitted?
.
Writing a First Draft General Organization of an Argument .docxouldparis
Writing a First Draft
General Organization of an Argument
|
General Organization of the Course Project
|
What to Include in the Introduction
|
Body Section I
|
Acknowledge the Opposing View
|
Using American Psychological Association (APA) Documentation Style
For the remainder of the course, we will focus on drafting and refining your paper; that effort begins with the draft you’ll write this week. By now you’ve conducted library and Internet research for information to support your topic. You’ve read a variety of sources of research. You’ve also written assignments over the past few weeks that contain material that you can incorporate into the draft. Now you will combine the components into the paragraphs and pages of your project. This week, you’ll plan your Course Project and write the first two sections.
How do you get there? It’s not as difficult as you might think.
General Organization of an Argument
Back to Top
If you’ve ever watched a courtroom scene, you’re familiar with the basic organization that is used to persuade an audience using an argument. One side introduces an issue, usually with background information. The opposing argument is stated and then taken apart point by point to create reasonable doubt. The audience is then presented with the main argument. The main argument is presented logically so that the audience can easily follow. This means that one section is presented at a time, each one supported by reasonable evidence from experts, witnesses, or personal testimony. The argument ends with a conclusion asserting the final persuasive points that are left to the audience to make a conclusion about.
Similarly the Course Project will have a recognizable structure.
General Organization of the Course Project
Back to Top
The Course Project consists of the following sections.
Introduction
Attention-getting hook
Topic, purpose, and thesis
Background
Relevance to reader
Body
Logically presented, point-by-point argument with evidence
(the number of sections may differ by paper, but you should plan to have at least two sections)
Section 1 (2–5 paragraphs)
Section 2 (2–5 paragraphs)
Section 3 (2–5 paragraphs)
Section 4 (2–5 paragraphs)
Section 5 (2–5 paragraphs)
Conclusion
Each section has a distinct focus.
Introduction and Background
Engages the audience; identifies the topic, purpose, and thesis, and previews for the reader how the papers will be organized.
Body
Divides into sections that logically present the point-by-point argument with evidence; developed with two to five major sections with two to five paragraphs each.
Conclusion
Summarizes without repeating information and includes a call for action that outlines how the reader might think or act differently.
The first draft, due this week, will provide the introduction and one section of the body of the paper.
What to Include in the Introduction
Back to Top
The introduction contains the following elements.
Attention-getting hook
Topic, purpos.
Writing a compare and contrast essay.Prompt Compare and cntr.docxouldparis
Writing a compare and contrast essay.
Prompt : Compare and cntrast girl and boy students
point by point. at least 4 different point. 4 body paragraph.
Example:
Point by point
First paragraph: Intro with thesis - name your two subjects and three points in the intorduction!
Ex. Thesis : It is clear from food, hygiene and attitude that cats are better than dogs.
Second paragraph: Point 1: Food
What both cats and dogs eat
Third paragraph: Point 2: Hygiene
Both cats and dogs cleaning methods
Fourth paragraph: point 3 Attitude
Both cats and dogs attitudes.
Fifth paragraph: Conclusion
.
Writing Assignment Discuss a LegalEthical IssueWrite a paper bas.docxouldparis
Writing Assignment: Discuss a Legal/Ethical Issue
Write a paper based on a real court case involving a newspaper. You
may not
use
Sullivan v. NYT,
but all other cases are approved. Select one of the following terms to focus on.
Libel
First Amendment
Freedom of Information Act
Invasion of privacy
Access/trespass
Copyright law
First serial rights
Simultaneous rights
Privacy Protection Act
Surreptitious reporting
Please find in a newspaper an actual documented court case or an article connected to one of the terms above. Use a search engine to find a plethora of this type of documented court case examples.
In your report, do the following.
Examine the term you selected.
Define the term and relate it to journalism and newspapers.
Using your court case example, explain how this issue became a legal matter for that newspaper.
Explore what could have been prevented, who won the case and why, and what this meant for future newspapers.
Your paper should clearly explore the term you selected and its implications through the actual court case you examine.
Your paper should be three pages long.
Your paper should follow APA formatting.
.
Writing Assignment #2 Supreme Court DecisionIn this assignment,.docxouldparis
Writing Assignment #2: Supreme Court Decision
In this assignment, you will be a Supreme Court Justice deciding on a Fourth Amendment case.
Carefully read about the case in question, the summaries of related Supreme Court decisions, and directions for the assignment.
The Case “Doe v. City of Intrusia”:
Trouble was brewing in the small, quiet city of Intrusia.
Someone was selling methamphetamine to the local teenagers and a popular football player died after an overdose.
The community was panicked and demanded that the police find the source of the meth and shut it down immediately.
The police suspected that 20 year old Joe Doe was selling the meth but they didn’t have much evidence.
The state prosecutor advised the police department to talk with the local cell phone carrier about “cloning” Mr. Doe’s phone.
The cell phone carrier created a “clone” phone which allowed the police to read text messages sent and received by Mr. Doe.
In no time the police had evidence implicating Mr. Doe as a dealer and the location of the meth lab.
Mr. Doe was convicted and the meth lab was closed.
Mr. Doe is appealing his conviction, claiming that the interception of text messages violated the unreasonable search and seizure protections of the Fourth Amendment.
Furthermore, all evidence from the text messages should have been excluded from his trial.
The City of Intrusia argues that there was no physical intrusion into Mr. Doe’s space and that police were acting quickly in order to uphold their duty to protect the community’s safety.
Background:
In Silverman v. United States the Supreme Court held that that the Fourth Amendment does not protect conversations, therefore wiretapping does not constitute a search and seizure.
The case was reversed in Katz v. United States, when Justice Harlan proposed a two pronged test of whether public actions should be considered private and therefore protected.
1)
Has the person exhibited an expectation of privacy?
and 2) is the expectation of privacy one that society is prepared to recognize as 'reasonable.'?
In more recent decisions, the Supreme Court has found that society is not prepared to extend privacy rights to bank customers regarding their bank statements and that society was not prepared to recognize a privacy right-to grow a backyard crop of marijuana.
The Questions:
·
Does the Fourth Amendment protect text messages sent over a cell phone?
·
Is there a “reasonable expectation of privacy” when texts are sent?
o
Did Mr. Doe exhibit an expectation of privacy when he sent the texts?
o
Is there a societal expectation of privacy in the process of text messaging?
Related Supreme Court Decisions (each case is linked to a short description on Oyez.com):
Court Case
Question
Olmstead v. United States (1928)
Did the use of evidence disclosed in wiretapped private telephone conversations; violate the recorded party’s Fourth and Fifth Amendments?
Katz v. United States (1967)
Does the Fourth Amendment protec.
Writing Assignment (Part 1) 3 pagesConsider a social issue in .docxouldparis
Writing Assignment (Part 1): 3 pages
Consider a social issue in which you are interested. It could be human freedom, sexuality, deviance, crime, social mobility, poverty, education, aging, or another similar issue. Select a specific hypothesis that you will evaluate against the available evidence from your library / Internet research.
The specific course learning outcomes associated with this assignment are:
Apply the sociological perspective to a variety of socioeconomic and political problems.
Use technology and information resources to research issues in sociology.
Write clearly and concisely about sociology using proper writing mechanics
.
writing a paragraph by answering the qustions on the file i alread.docxouldparis
writing a paragraph by answering the qustions on the file i already
uplaod. "Marketing Plan"
2. Place/Distribution
8
Should the firm try to deliver its offerings directly to customers, or can it better deliver
selected offerings by involving other organizations? What channel(s) should
be used in distributing product offerings?
8
What physical distribution facilities should be used? Where should they be located?
What should be their major characteristics?
8
Are members of the target market willing and able to travel some distance to buy
the product?
8
How good is access to facilities? Can access be improved? Which facilities need
priority attention in these areas?
8
How are facility locations chosen? Is the site accessible to the target markets? Is it
visible to the target markets?
8
What are the location and atmosphere of retail establishments? Do these retailers
satisfy customers?
8
When are products made available to users (season of year, day of week, time of
day)? Are these times most appropriate?
i uplaod some files about our project talking about "Chipotle"
.
Write an 1,050- to 1,400-word essay on technology and social chang.docxouldparis
Write
an 1,050- to 1,400-word essay on technology and social change, covering the following:
Provide an introduction that defines both technology and social change and discusses how they are related.
Discuss the impact of the personal computer, cellular phones, and the internet on society.
Using the three major sociological perspectives, describe the equilibrium model, the digital divide and cultural lag in relation to these technologies and social change.
Include how technology has influenced social epidemiology, health and the environment.
Explore a recent or emerging form of technology and discuss its potential benefits or consequences for society.
Provide a conclusion that summarizes key points.
Cite
at least three academic, peer-reviewed sources and two popular magazines.
Format
the paper consistent with APA guidelines.
.
Write a paper of no more than 700 words in which you do the follow.docxouldparis
Write
a paper of no more than 700 words in which you do the following:
Explain the role of ethics and social responsibility in developing a strategic plan, considering stakeholder needs.
Explain how your ethical perspective has evolved.
Format
your paper consistent with APA guidelines.
.
Write a paper of no more than 1,050 words that incorporates id.docxouldparis
Write
a paper of no more than 1,050 words that incorporates ideas from the attached document. The paper should do the following:
Summarize the issue.
Identify the problem.
Explain why this is the underlying problem.
Reflect on the group collaboration process in defining the problem.
Explain how a clearly defined problem could help you find the solutions.
*****Response must be consistent with APA guidelines complete with in-text citations as well as reference page. *****
.
Write a paper of no more than 1,050 words that incorporates idea.docxouldparis
Write
a paper of no more than 1,050 words that incorporates ideas from the attached documents. The paper should do the following:
Summarize the issue.
Identify the problem.
Explain why this is the underlying problem.
Reflect on the group collaboration process in defining the problem.
Explain how a clearly defined problem could help you find the solutions.
*****Response must be consistent with APA guidelines complete with in-text citations as well as reference page. *****
.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Unilever And The Failure Of Corporate Social ResponsibilityWay.docx
1. Unilever And The Failure Of Corporate Social Responsibility
Wayne Winegarden Contributor
EconoSTATSContributor Group
Opinion
GUEST POST WRITTEN BY
Tom Borelli
This article is more than 2 years old.
·
·
·
Paul Polman, Chief Executive Officer, Unilever speaks on a
panel during the annual Clinton Global Initiative on September
21, 2016 in New York City. (Photo by Stephanie Keith/Getty
Images)
The stunning election of Donald Trump as president and the
surprising Brexit decision demonstrates citizens can disrupt the
elite political establishment when it fails to represent the needs
of the people.
On a larger scale, it means politicians and governments can be
held accountable for putting their self-serving goals before
those that put them in power.
Shareholders also need to take note and rally to toss CEOs when
they put their personal agenda before the interests of investors.
Starbucks CEO Howard Schultz put personal political views
before shareholders when he aggressively challenged a number
of policies promoted by President Trump in a letter to
employees. The backlash from Trump supporters was swift and
#boycottStarbucks became a top trending hashtag on Twitter.
The damage Schultz is causing by putting himself before
shareholders pales in comparison to Unilever CEO Paul Polman.
Polman is a poster child of a CEO gone rogue.
Today In: Opinion
2. Since leading the company in 2009, Unilever has suffered
financial and public relations damage from Polman’s disastrous
leadership.
At the core of Polman’s problem is his eagerness to put
superficial feel good policies ahead of sound business decisions
and he is not shy about touting his twisted priorities.
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Campus Early Voting Locations In 2018
In Polman’s world, “as CEO of Unilever, my personal mission
is to galvanize our company to be an effective force for good.”
While Polman seeks approval from global elites and basks in the
glory of being called a “sustainability evangelist’” and a world
saver for his roles in combating climate change and efforts to
address social issues, Unilever has gone off the rails.
Despite Polman’s efforts to make Unilever a good corporate
citizen, Unilever was mired in environmental and sexual
harassment controversies.
Last year, Unilever settled with almost 600 workers in India
over mercury exposure from a now closed thermometer plant
following a 2006 lawsuit over exposure to the toxic element.
The issue reached global attention from an Indian rapper’s
song “Kodaikanal Won’t” that modified Nicki Minaj tune
“Amaconda,” with lyrics addressing the mercury contamination
problem.
A 2011 Irish Times story exposed sexual harassment claims
from African workers that said they had to bribe supervisors to
stop them from unwanted advances.
Polman’s efforts to address the sexual harassment claims were
not universally accepted by NGOs. A 2014 report by the
3. Netherlands-based Centre for Research on Multinational
Corporations “claimed the existing system of checks and
balances has failed to stop abuses of workers on Unilever’s
Kenyan estate, including sexual harassment and poor housing
conditions.”
And just this month, Unilever’s South African business
was accused of collusion with a competitor by the country’s
Competition Commission: fines of up to 10 percent of annual
turnover could be levied as a result. Rot starts at the top.
Polman’s focus on social matters distracted him from addressing
core business challenges. In a Fortune magazine interview last
month, Polman expressed more interest in supporting the United
Nations Sustainable Development Goals than Unilever’s 2016
financial results.
Unsurprisingly, Unilever’s business is suffering. The company’s
2016 fourth-quarter sales reported in January 2017 grew 2.2
percent which was lower than analysts’ expectations of 2.8
percent. Sales for the entire 2016 year were 3.7 percent below
Wall Street’s estimates of 3.9 percent.
Bloomberg’s Andrea Felsted highlighted growth problems in
Unilever’s personal care unit, “which has been one of its top
divisions, expanded at its slowest rate for two years.”
Polman’s biggest blunder by far was the recent rejection of a
$143 billion takeover effort from Kraft Heinz. Unilever’s stock
jumped about 15 percent after the bid became public but fell 8
percent following the company’s rejection of the takeover offer.
Unilever’s decision perplexed Wall Street since the offer of $50
per share represented an 18 percent boost from its share price
before the takeover bid and it would have resulted in valuing
the company at 24 times 2016 earnings.
Perhaps Polman rejected the takeover offer because it could
prevent him from using Unilever to advance his personal
political agenda.
It’s time for Unilever shareholders to mimic the anti-
establishment trend and oust Polman as CEO and let him play
politics on his own dime.
4. Tom Borelli Ph.D. is a former shareholder activist and business
executive, and a contributor to Conservative Review.
It was late on a dreary winter day in Seattle in early January
2017. As Jeff Bezos studied the report
for final quarter in 2016, he hoped investors would be pleased
with the results. Amazon’s share price
was up 43% compared to the same time last year, and market
cap had grown almost 12% from $318
billion to $356 billion over the same time.1 Exhibit 1 depicts
Amazon’s revenue, net income, and oper-
ating expenses from 1996 to 2016.
As Amazon evolved with technology, traditional boundaries
between hardware and software, products
and services, and online and bricks- and-mortar stores had
become increasingly blurred. As a result,
Amazon found itself engaged in a fierce competitive battle for
control of the emerging digital ecosys-
tem, pitted itself against technology giants such as Alphabet
(Google’s parent company), Alibaba, and
even Microsoft and Apple.
Throughout this digital transformation, Amazon’s investors
remained focused on the long-term,
because consistent profitability continued to elude the company.
Sales, however, increased quarter after
quarter, fueling optimism in what the long-term projects the
company invested in could mean for
future profitability and growth. Investors are by now quite
familiar with the three pillars of Amazon
that Bezos likes to talk about: the e-commerce marketplace, the
Prime membership program, and
5. Amazon Web Services (AWS). But will this be enough going
forward? While Amazon was starting to
post some profits, its stock was down 7% after the last quarterly
results were posted in 2016.2
As Bezos gazed out of the office window into the darkness, he
could not help but ask himself that
very question: What should be the fourth pillar of Amazon?
After all, Amazon had launched a smart-
phone, a set-top box for video streaming, a music streaming
service, in-house video programming,
and expanded same-day delivery services. Bezos immediately
thought of the AWS unit that had been
the one shining star, generating substantial margins and
showing clear potential for continued stellar
growth. But even for AWS, trouble seemed imminent: Talk
among investors about a pending AWS spin-
out loomed, and Bezos anticipated heightening pressure for a
breakup. Could he confidently rely on
AWS to drive the profitability until he found the next growth
engine? How could he and his lieuten-
ants mitigate any pressure to spin-out AWS? Or, should he
divest AWS, and create a stand-alone unit?
And what about the company’s growing competition with the
likes of Microsoft, Alphabet, and
Alibaba? What would Amazon need to do for its international
business, mainly in India and China?
For Bezos, the technology and industry convergence he had
experienced in the last few years was
F R A N K T. ROT H A E R M E L
Amazon.com, Inc.
Professor Frank T. Rothaermel prepared this case from public
7. ing investor call.
A Brief History of Amazon
Jeff Bezos started out as a computer specialist at D. E. Shaw, a
hedge fund company in New York. In
the early 1990s, he noticed the rapid growth of the internet and
was drawn to its potential for a new
era of retail services. Still, he needed a product that would lend
itself easily to online sales in order
to break ground in this new arena. After brainstorming many
possible ideas, Bezos settled on books,
which are easily sourced and warehoused. Books are also an
ideal commodity because they are iden-
tical products regardless of where they are purchased (in a
brick-and-mortar bookstore or online).
This in turn reduced customer uncertainty about transacting
online, which was new at the time. Also,
an Internet store can carry a significantly larger inventory of
books than typical bricks-and-mortar
establishments. Placing all bets on his new business plan, Bezos
moved from New York City to Seattle,
Washington. When Jeff Bezos started Amazon.com out of a
garage in a Seattle suburb in 1994 to sell
books online, he furnished his makeshift office with discarded
wood doors for desks. In less than 25
years, Amazon morphed from a fledgling start-up into one of
the world’s most valuable companies,
active in far-flung businesses from e-commerce and cloud
computing to media entertainment. As of
December 31, 2016, Amazon employed more than 341,000
employees. Yet, wood doors turning into
desks remain a staple at Amazon, where strict cost control is
paramount to this day. Exhibit 2 shows
Amazon’s key events and market capitalization over time.
8. Amazon’s First Decade, 1995–2005. Amazon’s website
officially went live in July 1995.3 It was an
instant success with book lovers everywhere. The online startup
set itself apart from other Internet
merchants by pioneering one-click shopping, customer reviews,
and order verification via e-mail.
Early on, customer service representatives wrote personalized
emails to each customer after orders
were placed.4 These innovations made it easy and convenient
for online shoppers to adopt Amazon’s
services and continue to use them. By September 1995, the
company was already generating $20,000 in
sales per week. As a result, the startup rapidly outgrew its 400-
square-foot office (which was actually a
garage) in Bellevue, Washington. Over the next few years,
Amazon moved to new warehouses several
times to accommodate its growing volume of business.
With revenue of $15.6 million by 1997, Amazon’s book sales
far exceeded those of even its largest
bricks-and-mortar bookstores. Riding high on consistent growth
each quarter, Amazon completed a
successful initial public offering (IPO) on May 16, 1997. By
1998, Amazon had become the sole book
retailer on AOL’s and Netscape’s commercial channels. Later
that same year, Amazon hit a momentous
benchmark when its market capitalization exceeded that of both
Barnes & Noble and Borders, its two
largest bricks-and-mortar competitors.5
Exhibit 3 depicts Amazon stock performance relative to the
NASDAQ-100 Index since its initial
listing. Over the last decade, Amazon’s stock appreciated by
close to 2,000 percentage points, while
the NASDAQ-100 Index appreciated 200 percentage points.
9. For the exclusive use of m. Liu, 2019.
This document is authorized for use only by mengci Liu in MET
AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
3
Amazon executed a series of strategic alliances as well as
acquisitions to rapidly expand its prod-
uct and service offerings. For example, Amazon bought
junglee.com, an aggregation and comparison-
shopping service provider, and incorporated its technology
directly into Amazon’s own website.6 The
service tracked users as they browsed products on Amazon.com
or affiliated websites, and displayed
related or complementary products that might interest each user
based on the information collected.
The resulting user experience resembled a process of
“spontaneous discovery,” as though each indi-
vidual customer was walking the aisles of a traditional store.
Based on the browsing history, the online
store was individualized to the user’s preferences and choices.
Similarly, Amazon entered online video
sales through the purchase of IMDb (Internet Movie Database)
and expanded into Europe with the
acquisition of online booksellers BookPage and Telebook.7
In 1999, Amazon partnered with Sotheby’s, a fine arts auction
house, to offer online auctions.8 Later,
it added several more dot-coms to its portfolio using $1.25
billion raised through a bond offering.
10. Among the companies acquired were HomeGrocer.com,
Pets.com, and Living.com, as well as catalog
businesses Back to Basics and Tool Crib of the North. In
addition, Toys“R”Us and Amazon brokered a
deal to form a co-branded toy and video game store. Although
the contract was intended to last ten
years, the deal came to an early end when Toys“R”Us accused
Amazon of violating the contract by
selling toys from other vendors. Amazon spent $51 million to
settle the litigation.
Internationally, Amazon added warehouses as well as country-
specific sites in 1998 in the United
Kingdom (amazon.co.uk) and Germany (amazon.de) to
accommodate its growing popularity in
Europe. In addition, for $75 million, Amazon purchased
Joyo.com, China’s largest online book, music,
and video retailer as a way to gain footing in the world’s largest
internet market.9 French (amazon.fr)
and Japanese (amazon.co.jp) Amazon sites debuted in 2000.
After the internet bubble of the late 1990s
burst, Amazon went through a large restructuring effort in 2001,
resulting in a $150 million charge
and a 15% reduction in its work force.
This proved to be only a temporary setback, as the company
quickly entered a new phase of prod-
uct and service proliferation. In that same year, Amazon was
contracted by Borders to provide inven-
tory, fulfillment, content, and customer services. It also became
an accredited internet domain name
registrar through the Internet Corporation for Assigned Names
and Numbers (ICANN), a privilege that
only 160 entities could claim. The company expanded its
presence in consumer product segments by
partnering with hundreds of clothing retailers in 2002 to initiate
11. a clothing sales department.
Amazon launched its “search inside the book” feature in 2003,
permitting customers to search the
contents of more than 120,000 books prior to purchase. Shortly
thereafter, Amazon launched another
site called askville.com. It was designed to connect users by
allowing them to ask each other questions
about anything.
Amazon launched its premium subscriber service, Amazon
Prime, in 2005. Subscribers paid $79
(now $99) a year and received free two-day shipping on Prime
products from Amazon.com, as well as
access to Amazon’s Instant Video service. In an attempt to
boost Prime membership, Amazon acquired
rights to exclusive content from Discovery Communications and
other content providers, providing
Prime customers with access to unlimited instant streaming of
more than 18,000 movies and some
2,000 TV titles.10, 11
Amazon’s Second Decade, 2006–2016. Amazon Web Services
(AWS) is Amazon’s full-feature,
cloud-based service that includes computing and storage
capacity, content delivery, data management,
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University from Jun 2019 to Dec 2019.
4
12. Amazon.com, Inc.
software, networking, payment and billing systems, and other
applications.12 Launched in 2006, the
unit came about as Amazon struggled in the early 2000s with
slow software development processes.
To accelerate this, the company built a set of in-house
infrastructure services that would allow its retail
business to move more quickly. Amazon, however, only needed
its full capacity for about six weeks of
the year, during each holiday season. Amazon quickly realized
that such on-demand web services and
computing power would be valuable and useful for other
companies and formed a business around
the infrastructure. Subsequently, entities ranging from tech
startups to government agencies (such as
the CIA) have rented server space, storage, and computing
capability from AWS. For a time being, even
the infamous WikiLeaks was hosted on AWS, until Amazon
ended the relationship in 2010. Given its
early lead, by 2016, AWS had the largest market share in this
space with 31%, before Microsoft’s Azure
(9%), IBM’s Cloud (7%), Google and Salesforce (each 4%),
with the remaining market share held by other
providers. In 2016, AWS revenues were $12 billion, but
bringing in $1 billion in profits (Exhibit 4).
On a local level, in 2006 Amazon started a dry grocery service
in Seattle, expanding it in 2007
to include perishables. Amazon also continued its growth in the
entertainment industry. In 2007, the
company launched an MP3 site that sold audio files to users
without copyright restrictions. It also
acquired Brilliance audio, an audiobook publisher, and launched
a video-on-demand service that
13. allowed users to stream or download movies and TV shows.
This included a social-networking site
exclusively for book lovers called Shelfari. Amazon also
launched Endless.com, a shoe and accessories
e-tailer, in 2007, and later grafted it into its main site at
Amazon.com/Fashion.
In 2007, Amazon also ventured into hardware development with
the release of the first-generation
Kindle, which sold out in less than six hours. This was not
surprising because Amazon sells its Kindle
devices at or even below cost.13 This has enabled the company
to penetrate the e-reader and tablet
market where competitors such as Apple have a strong hold.
Amazon’s losses from sales of computer
hardware more than made up for by the sales of e-books,
movies, and other digital content sold
through the Kindle. Subsequent editions incorporated new
features such as a larger screen (DX), a
keyboard (Kindle Keyboard), and a touchscreen (Kindle
Touch).14
To provide a more seamless reading and educational experience,
Amazon complemented the Kindle
line of tablets and e-readers with the purchase of Audible, an
digital audio books provider, for $300 mil-
lion in 2008.15 In 2013, Amazon also acquired the website
Goodreads.com, a book-sharing social net-
work that provides user-generated book reviews and reading
lists, for an undisclosed amount.16
To take advantage of the anticipated popularity of e-books and
e-readers, Amazon launched Kindle
Direct Publishing (KDP) in conjunction with the Kindle in
2007, to make it easier for authors to self-
publish books. An author can publish their work through KDP
14. quickly and have it available around
the world the next day via Kindle devices and the Kindle app.
Independent publishers receive a 70%
royalty while maintaining the flexibility to make changes to
their work at any time. Paper-bound cop-
ies may be printed using Amazon’s Create Space services. In
2011, sales from e-books surpassed paper
book sales for the first time.17 A subscription to Prime also
provides users with access to more than
350,000 book titles through the Kindle Owners’ Lending
Library, making Amazon Prime an integral
part of the Kindle experience. Sales of the Kindle itself were
estimated at 20 million units in 2013.18
In 2008, Amazon acquired Zappos, an online shoe company
known for exceptional customer service,
for $1 billion. Amazon runs Zappos as an independent
subsidiary with its own site (zappos.com). That
same year, Amazon sold its European online DVD rental
services to LOVEFiLM International for a 40%
share in its business; it purchased the remaining shares in 2011
to complete the acquisition. Amazon
also became a major investor in The Talk Market, a user-created
TV Shopping Channel.
19
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University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
15. 5
The breadth of products and services on offer at Amazon helped
insulate it from the worst of the
fallout from the 2008–2009 global recession. In fact, online
retail rose by 11% in 2009 despite the
depressed economy as shoppers were looking for bargains
online. Americans buying items online
increased from 27% of all Internet users in 2000 to nearly 63%
in 2014, and is projected to reach 68
percent by 2018, spurred at least in part by Amazon’s rapid and
continued growth.20, 21 Amazon’s
growth has come from the company’s traditional strengths (for
example, books and retailing), as well
as from other areas that the company continues to invest in and
focus on. However, the focus on
peripheral businesses has hit company profits because Amazon
invests heavily in areas such as new
fulfillment centers to improve shipment times, expansions of the
Amazon Prime media service, and
development of its smart devices.22 See Exhibit 5 for Amazon’s
financial performance over the past
five years.
In 2009, Amazon introduced Amazon Basics or its own brand of
products (e.g., phone charging
cables, batteries, laptop stands, etc.). Amazon branding its own
products further lowers costs and it
also increases the percentage of sales that it retains. Amazon
branded batteries have grown to be
roughly one third of that category’s entire sales, and Amazon is
extending its brand into additional
categories, ranging from electronics to kitchen products and
even suitcases.
16. In 2012, the company launched AmazonSupply (now
AmazonBusiness) to offer business clients prod-
ucts such as mechanical parts, janitorial supplies, and medical
supplies. By 2014, the AmazonBusiness
catalog of products features 2.2 million items, relative to the
market leader’s 1.2 million items.23 In
May 2016, Amazon announced that its wholesale unit,
AmazonBusiness, had sold goods worth $1 bil-
lion in its first year of operation. Amazon in its bid to capture a
pie of the $7.2 trillion large annual
wholesale and distribution market has close to nine million
items and is adding customers at a rate
of about 20% per month.24
In 2013, Jeff Bezos announced that Amazon would start
working on drone delivery of packages
under the name of Prime Air. Drones are expected to pick up
packages from the fulfillment centers,
deliver them to the customer’s doorstep, and return to the
fulfillment center with no human involve-
ment. On the trip, drones rely on GPS data to chart a course and
drop packages. While this initiative
was welcomed by customers, the project was delayed due to
several issues including battery life of
drones, weather, unreliable GPS data, and aggressive birds.
Besides technical hurdles, Prime Air ser-
vices were also hampered by Federal Aviation Administration
(FAA) regulations (in the U.S.) for using
drones commercially. Nonetheless, on December 7, 2016
Amazon Prime Air completed its first deliv-
ery using a drone. The package was delivered to a customer in
the Cambridge area of England and
made it to the customer’s home just 13 minutes after the order
was placed.25 In early 2014, Amazon
filed for a patent for an Airborne Fulfillment Center (AFC),
indicating that Amazon expects a big-
17. ger role for drone deliveries than just local warehouse-to-
doorstep delivery. The AFC is expected to
essentially be an airship flying at altitudes of 45,000 ft. that
would house the items Amazon sells. The
patent explains a method for drones to fly into the warehouse,
pick up the items to be delivered and
deliver them, all while continually airborne.26
To complement the Kindle, Amazon has launched peripheral
smart devices. In 2014, Amazon
launched the Fire smartphone. The device boasted features that
included hands-free scrolling, holo-
graphic images, and software that uses the phone’s camera to
detect merchandise in an effort to do
“something different and better.”27 While the hardware
competed with smartphones from Samsung,
Google, and Apple, the differentiation lies in the potential for
the phone’s software to facilitate shop-
ping, with some analysts likening the device to the one-click
check out that the company introduced
on its website in the late 1990s. Thus, the device’s “Firefly”
feature enables the user to point the phone
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6
Amazon.com, Inc.
at conceivably any item that can be purchased on Amazon,
18. including music and television shows, and
then order it online in seconds. This creates the opportunity for
commerce at just about any moment
for the consumer who carries the device. The device also offers
unlimited photo storage via Amazon’s
cloud, circumventing a common issue by which users, who
typically rely on their smartphone as their
primary camera, have diminished storage space for apps or
music due to the data drain of storing
photos on the device itself.
Despite the promise and the launch fanfare, the device proved to
be a major disappointment. Users
gave the device an approval rate of just over 50%, and
reviewers described the device as “forgettable”
and “mediocre.”28 To entice consumers to buy the device, the
company reduced the price from $199, to
$0.99. But even this radical move failed to help gain share in
the smartphone market against the likes
of Apple, Google, and Samsung. Weak sales of the device meant
that the anticipated added consumers
funneled to Amazon’s online store via the phone did not
materialize. Overall, it is estimated that the
company took a $170 million write-down and has sold less than
50,000 units (compared with over
20 million units for Apple’s iPhone 6, a mere four months after
launch).29 30 In short, the Fire phone
was Amazon’s first significant misstep for a company that has a
habit of making diversification and
expansion into adjacent businesses a success.
In April 2014, Amazon also launched Fire TV, a set-top box
that streams video and games. This put
Amazon in the market for consumer’s living rooms, where the
likes of Apple, Google, Roku, and even
Comcast had their own devices already on the market for
19. content streaming. Fire TV, as with the Fire
phone, was introduced with an upfront price tag, which is
contrary to Amazon’s tradition of offering
its hardware to consumers at cost, and charging for related
services and/or content. Despite Amazon’s
assurances that the device was geared more toward
entertainment as opposed to selling merchandise,
the company admitted that the shopping aspect of the device
was anticipated to “get in the way of the
entertainment focus of the device.”31 However, consumer
reception of the device was strong, very much
unlike the Fire phone. Since launch, it is estimated that more
than 10 million fire TV boxes have been
installed.32, In October 2014, the company launched the HDMI
stick version of the set-top box, which
is not only more cost effective than the box iteration of the
device ($39 versus the set-top box’s $99),
but makes integration between Fire TV, a Fire phone, and a Fire
tablet seamless and convenient for
consumers who have compatible devices.
34
In addition to its e-book offerings, Amazon has been expanding
the online content that is available
to its customers (particularly those who use Amazon devices) in
an effort to position the company as
a central hub to its consumers. In 2014, Amazon Appstore, the
company’s virtual portal to apps and
games for its mobile devices, offered more than 240,000 apps
and games and is designed to directly
rival Google’s Play and Apple’s App Store platforms (although
the latter platforms offered consumers
over one million apps).35 Since June 2014, Amazon has been
providing Prime Music, an online music
streaming option that is free for Amazon Prime subscribers. The
20. service is designed to rival the likes
of Spotify and Pandora, but without the advertising that has
long been an annoyance for consumers,
yet which is vital as a revenue stream to music-streaming
services.36
Similarly, and in conjunction with the launch of Fire TV,
Amazon also began to offer video stream-
ing as a means to compete with Google’s YouTube and Netflix.
Launched with Fire TV, the service
gives subscribers a library of content to stream, which
encompasses not only Netflix, Hulu, and ESPN,
but also Amazon’s own Prime Instant Video library.37 In
addition, Amazon has taken the initiative in
streaming content by partnering with HBO. This marked the
first time a player in traditional cable
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Amazon.com, Inc.
7
entered the online content-streaming space. The deal was seen
as a significant blow to Netflix, given
that it prevented HBO’s parent company Time Warner from
striking a similar deal with Amazon’s com-
petitors, including Netflix and Hulu.38
As a step further, Amazon created its own content for
21. streaming, which has even garnered critical
acclaim: the company’s television series Transparent won a
2015 Golden Globe.39 The independent
movies are intended for theatrical release and will be available
for digital streaming as part of the
Prime library within two months of release—as opposed to three
months or more with respect to
typical theatrically-released movies.40 “X-ray for Movies” was
developed through Amazon’s acquisition
of IMDb, allowing users to interact with the video to obtain
detailed information about the movie’s
characters, directors, writers, and other elements. This feature
has been extended to most Amazon
Videos offerings. There is also an “X-ray” product for books
that offers the same features except that
terms are linked from the books to YouTube and Wikipedia.
In an extension of its video-streaming capability, Amazon has
also expanded into the realm of video
gaming through its acquisition of Twitch Interactive. Twitch
broadcasts video of consumers playing
a variety of video games, and it is the fourth largest source of
internet traffic behind only Netflix,
Google, and Apple. Amazon has made an active push into video
gaming, expanding the number of
programmers it employs and introducing several new video
games as part of its Fire TV offering.41
In November 2014, Amazon introduced Echo, a new category of
devices that are controlled solely by
voice commands. The device equipped with a speaker system
connects to the owner’s Amazon account
and allows purchases to be made using voice commands. It
plays music from Amazon Music, Spotify,
and Pandora accounts using voice commands. It allows users to
control lights, switches, and thermo-
22. stats with compatible smart home devices. Introduced with an
upfront price tag of $179.99, it uses
Amazon Web Services to constantly learn and add functionality
over time. A few months after the
launch, Amazon added the Tap and Dot devices as lower cost
alternatives to the Echo. They contain
the same proprietary digital voice assistant, Alexa, as the Echo.
Within a few months of the launch,
Echo devices have overtaken all Amazon hardware devices in
sales dollar volume. In December 2016,
Amazon was estimated to have sold 5.2 million units worldwide
during the year, excluding holiday
sales.42
Alexa, the voice service that is embedded in the Amazon Echo,
Echo Dot, and Amazon Tap, enables
customers to interact with devices in a more intuitive way using
voice. The goal of Alexa was inspired
by the computer voice and conversational system on board the
starship Enterprise in science fiction
TV series, Star Trek. Alexa runs on the cloud and adapts to
speech patterns, vocabulary, and the user’s
preferences. Alexa allows app creators and developers to
directly market services to customers rang-
ing from ordering flowers to reading the daily news headlines as
well as audio books from Audible.
The Amazon Echo was the number one selling product across all
$100+ products on Amazon.com
on Black Friday 2015. Amazon has also created the Alexa Fund
that provides up to $100 million in
investments to fuel voice technology innovation. Alexa is one
of the first breakthrough products and
services using artificial intelligence and machine learning
combined with a voice-activated interface.
Many observers see this as the future of computing.43
23. Amazon continues to diversify at a relentless pace. Besides
offering same-day delivery of grocer-
ies in some metropolitan areas and testing drones for even faster
distribution, Amazon now plans
to capture a large piece of the over $10 billion college
bookstore market. In a pilot project, Amazon
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8
Amazon.com, Inc.
initiated a student-centered program at three large universities:
Purdue University, the University of
California, Davis, and the University of Massachusetts Amherst.
The goal of Amazon Campus is co-
branded university-specific websites that offer textbooks,
paraphernalia such as the ubiquitous logo
sweaters and baseball hats, as well as ramen noodles!
As part of this new campus initiative, Amazon offers its Prime
membership to students at a 50
percent discount ($49 a year) and guarantees unlimited next-day
delivery of any goods ordered online,
besides all the other Prime membership benefits (free streaming
of media content, loaning one e-book
a month for free, discounts on hardware, etc.). To accomplish
next-day delivery, Amazon is build-
ing fashionable delivery centers on campus, university co-
24. branded such as “[email protected]” Once
a package arrives, students receive a text message and can then
retrieve it via code-activated lockers
or from Amazon employees directly. The on-campus delivery
facilities also serve as student return
centers.
Amazon’s new campus initiative allows it to bind a younger
generation of shoppers ever closer
into its web of products, services, and content. Next-day
delivery makes students less likely to shop
at traditional campus bookstores. Amazon also has a history of
selling textbooks at a discount in
comparison to old-line campus bookstores. All course materials
automatically qualify for next-day
delivery and do not require a Prime membership. The Amazon
Campus initiative is predicted to save
students $200 to $400 a year on textbooks and other supplies.
Another area of focus for Amazon is its supply chain. From the
start, Amazon has been opening
centrally-located warehouses to save on a key cost component–
shipping. Shipping costs remain one
of Amazon’s main cost drivers, and the technology company is
committed to continue lowering it.
While Amazon lost close to $7.2 billion in shipping costs last
year, it has also been able to achieve
higher efficiency by building its own infrastructure. Even
though Amazon has been offering free ship-
ping on increasingly more items, it has still witnessed an uptick
in percentage shipping costs being
recovered in the form of shipping revenue from 34.6% in 2011
to 53.3% in 2016.44 According to a
new study published by National Bureau of Economic Research
this increased efficiency has allowed
Amazon to reduce prices of products on its portal by as much as
25. 40% over a 10-year time-frame. A
50% reduction in the free shipping threshold from $49 to $25 in
last six months is another testimony
to the immense pricing power which Amazon can draw from its
robust supply chain infrastructure.
45 Walmart.com started in 2017 to offer free shipping for any
order above $35.
Amazon is now making in-roads in the global logistics services.
To benefit from the $1 trillion large
cross-border trade, Amazon has initiated a global supply chain
project code named “Dragon Boat.” The
underlying motive of this project is to allow seamless movement
of goods from factories in the East
(China and Southeast Asia) to its customers in the West.46
Another move in this direction was when
in December 2016, Amazon launched a new cargo service,
expanding its transportation from trucks
to airplanes. Amazon leased 40 jets emblazoned with “Prime
Air” to support their holiday season
deliveries, which are usually shipped through FedEx and UPS.
Amazon maintains that this fleet is to
supplement the capacity of the shipping companies, rather than
replace them.47
Amazon’s Corporate Strategy
As the largest comparative-shopping website boasting “Earth’s
largest selection” of consumer goods,
Amazon satisfies the desire of customers to find everything on
their shopping list at one place without
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26. University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
9
leaving home.48 In addition to the products that Amazon carries
directly, it provides a marketplace
for customers to purchase goods from third-party vendors. The
Amazon Marketplace is a platform on
which any qualified seller can access Amazon customers
globally. About 50% of Amazon’s retail sales
are conducted on its Marketplace. Pursuing its mission of being
the “Earth’s most customer-centric
company,” Amazon excels at customer service. Indeed, a recent
survey ranked Amazon as the most well-
regarded company in the United States.49 The online retailer
pioneered the recommendation system by
which customized suggestions on shopping items, books, music,
and so forth are made to customers
based on their buying patterns, preferences, and characteristics
of their shopping history as well as
that of others with similar profiles. This creates a more
personalized shopping experience, especially
important when transacting online. As a consumer adds items to
their online shopping cart, Amazon
then suggests complementary products, frequently offering a
bundled price at a discount.
Globally, only Alibaba, China’s leading e-commerce
conglomerate, is larger than Amazon. Besides
offering a wide variety of products and services, Amazon also
diversified geographically pretty much
from the outset. Today, Amazon operates country-specific sites
27. in more than a dozen countries,
including in China (amazon.cn). Currently, Amazon is making a
major push into India (amazon.in),
where the domestic Flipkart—started by former Amazon
employees—took an early lead.
In 2011, Amazon launched its own advertising network in order
to generate targeted ads for its
online customers. A customer browsing Amazon for a particular
item but did not end up purchasing
anything was tagged and then served an ad for that particular
item when the customer returned to
shop at a later stage. According to eMarketer, Amazon’s
network generated an estimated $870 million
in ad revenue in 2014, and is forecast to bring in over $1 billion
in 2017.50 Amazon also has plans
to ramp this program up to challenge Google for a larger piece
of the $50 billion-per-year online
advertising market. Under these plans, Amazon is set to use its
customer data to expand its in-house
ad platform (dubbed Amazon Sponsored Links) to ultimately
replace the ads that Google currently
supplies on its website.51
In order to better support online retailing’s competition with
brick-and-mortar retailing, Amazon
recently deployed a pilot program of using robotic sorting in
several of the company’s fulfillment
warehouses during the busy holiday season.52 The initiative
was the culmination of Amazon’s acquisi-
tion of Kiva Systems in 2012 for $775 million and was aimed at
helping Amazon reduce the time taken
to sort and pack goods towards guaranteeing same-day or
overnight deliveries of packages. The use of
10,000 robots might not only offer a competitive edge in terms
of fulfillment, it also has the potential
28. for Amazon to save between $400 and $900 million. Indeed,
fulfillment costs amounted to $2.6 billion
in the third quarter of 2014, up 30% on the previous quarter.
In support of online retailing, Amazon recently opened several
brick-and-mortar stores in the
United States. These physical retail stores serve as yet another
way by which Amazon can touch the
customer. The retail locations enable next day delivery for
many items, pickup of online orders, and
exchange or return purchases.53 In particular, the ability to
return or exchange purchases in person
becomes especially attractive to consumers. Such a service
would negate potential frustration of hav-
ing to repackage a purchase and drop it off for shipping where
there is always the potential for it to
be lost in transit. Moreover, these retail locations also offer
lockers where customers can safely retrieve
their purchases, overcoming the rampant theft problem of items
left at the apartment doors, especially in
metropolitan cities. With the bankruptcy filing of Radio Shack,
there is speculation that Amazon may
acquire Radio Shack’s storefronts as a way to expeditiously
launch into brick-and-mortar retailing in a
widespread and cost-effective way.54 Amazon also announced
that they would open cashier-less grocery
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University from Jun 2019 to Dec 2019.
10
29. Amazon.com, Inc.
stores under the umbrella Amazon Go in Seattle in December
2016. As customers walk in, they scan
their phones at a kiosk and walk out with items they wish to
purchase which are automatically charged
to their Amazon accounts. The technology relies on video
streaming, computer vision, and sensors that
identify and track customers. Deep-learning algorithms have
faced issues when more than 20 customers
are present, and this issue may set back the launch date for
Amazon Go.55
The company has also moved further up the retail value chain
into the wholesale and distribution
market; a market worth $7.2 trillion. Amazon Business’ ability
to provide a client-friendly interface,
24/7 delivery, and low prices made it a significant competitive
threat to incumbents that were com-
posed primarily of family-run, regional businesses that
emphasized personal interaction in the sales
process.
AWS is viewed as having the potential to eclipse Amazon’s
retail business in revenue in the medium
to long term56 (Exhibit 4). Although exhibiting healthy growth
at an estimated 35 to 40 percent
per year, it is clear that AWS does not have the Infrastructure-
as-a-Service (IaaS) market to itself.
Competition has increased from companies with deep pockets;
in particular, Microsoft’s Azure cloud
service and Google’s Cloud Platform. Other notable competitors
moving in on the IaaS space includes
AliCloud, Verizon, Cisco, IBM, and VMware.57 As a result of
increasing competition, AWS cut prices for
30. its services, which in turn hurt profits in a unit that has
traditionally enjoyed substantial margins.58
Legal Challenges
In 2017, Amazon accounted for more than half of all online
dollars spent in the U.S.59 An increasing
share of this is captured by its private-label brand of products
including everything from batteries
and phone chargers to cotton washcloths, under its Amazon
Basics label. AWS is the world’s largest
cloud computing provider. In the same year, Amazon is
planning to spend twice as much on movie
and TV content than HBO, a premium cable and satellite TV
network owned by Time Warner. (As of
summer 2017, the U.S. Department of Justice is still reviewing
the proposed $85 billion acquisition of
Time Warner by AT&T.) Alexa, the virtual assistant powering
Echo and other devices, is competing for
dominance in the virtual reality space.
With ever increasing scale and scope, Amazon is more likely to
face additional legal challenges in
the future. As such, Amazon’s dominance of the retail space has
not gone without opposition from
traditional retailers. In 2012, several U.S. states passed
legislation mandating that state sales taxes
must be collected for online purchases within state borders. As
a result, Amazon lost part of its pric-
ing advantage and was forced to start collecting sales taxes in
Pennsylvania, Texas, and California. By
2017, the number of states requiring the company to collect
sales taxes was up to 30, in addition to
the District of Columbia.60
Amazon’s presence in book retailing and publishing allowed it
31. to lock-in even the largest publish-
ing houses to multi-year contracts where Amazon serves as the
portal through which books (print
and digital) are marketed and sold.61 This leverage, however,
has not been without controversy, and
is continually scrutinized by the EU Competition watchdog.62
Publishing houses have argued that
Amazon has set book prices below cost for many publishers
(i.e., selling brand-new release of bestsell-
ers as e-book for $9.99, while hardcover books of the same title
were priced at $28.95 at other retailers
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Amazon.com, Inc.
11
such as Barnes & Noble). In particular, publishers argue that
Amazon’s discount pricing does not take
into account the publisher’s expenses in content development,
editing, and marketing, resulting in
much lower revenues to publishers and, correspondingly, lower
royalties to authors.
A much bigger legal threat is looming on the horizon,
however.63 Amazon now accounts for roughly
one half of all internet retail spending in the United States. In
addition, with AWS, physical retail
stores, and drone deliveries, Amazon is increasingly becoming a
32. fully vertically- integrated enterprise.
Many argue that Amazon is much like a utility, providing the
backbone for Internet commerce, both
in the business-to-consumer (B2C) as well as in the business-to-
business (B2B) space.64 This paints a
future picture in which rivals are depending more and more on
Amazon’s products and services to
conduct their own business. Amazon’s tremendous scale can
bring it increasingly into conflict with
governments. Antitrust enforcers in the U.S. such as the
Department of Justice might train their sights
onto Amazon.
Competitors and Industry Convergence
Although Jeff Bezos claims to think of customers only, and as
such, urges Amazon’s employees to
have an obsessive customer focus, the list of competitors
included in the company’s annual filings is
getting longer and longer.65 It features not only retailers in
their various forms (online, offline, and
multi-channels), publishers, film producers, distributors, but
also online search engines and compa-
nies that design, manufacture, market, and sell
telecommunications and electronic devices, as well as
logistics and advertising companies.66
Amazon has continued to morph through vertical integration and
continued diversification in
products, services, activities, and geographies. Amazon started
out as an online book retailer but
has grown into a massive discount internet vendor, streaming
multimedia, offering cloud computing
services (AWS), and manufacturing its own electronics and
telecommunication devices (e.g., Kindle
and Alexa line of products). However, its ability to innovate
33. and cultivate business around activities
that are not necessarily traditional core competencies has also
pitted the company against some
formidable competitors. Indeed, Amazon’s innovation and
expansion into other lucrative areas of the
technology industry has been part of a broader convergence of
industries previously the sole domain
of companies like Alphabet (Google’s parent), Microsoft, and
Apple.
Apple is the world’s largest vendor of digital media (iTunes)
and a highly successful mobile device
manufacturer (iPhone, iPod, iPad). Likewise, Google began as a
search engine, but has similarly
branched out into hardware (smartphones, Google Glass—
though this was abandoned in 2015), mobile
operating systems (Android), content delivery (Google Play,
YouTube), internet browsing and search
(Chrome), web applications (Google suite of application
programs, Google Drive), cloud computing (Google
Cloud), and social networking (Google+), albeit hardly a
success. Facebook is the world’s largest social
networking site (some two billion users globally), but it has
also moved to a more mobile-oriented
approach by developing advertising and apps specifically for
mobile devices as well as live streaming
video. Underscoring the innovation of these companies is the
push to win the race to develop a truly
integrative online ecosystem for consumers, which will grant
them proprietary access to consumers’
data—and their wallets and those of advertisers.67
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
34. University from Jun 2019 to Dec 2019.
12
Amazon.com, Inc.
Finally, added to this complex competitive dynamic is the
meteoric rise of Alibaba, the Chinese
internet giant that is able to compete directly with Amazon’s
online retailing.68 Exhibit 6 compares
key 2016 financial data for Amazon, Alibaba, Alphabet,
Microsoft, and Walmart. The first four are
also among the top ten largest tech companies in the world by
market cap (Exhibit 7). With a market
cap of some $450 billion (in spring 2017), Amazon is one of the
top-five most valuable technology
companies in the world, besides Apple, Alphabet, Microsoft,
and Facebook (in rank order). Exhibit 8
depicts a comparison of the normalized share prices of Amazon,
Alibaba, Alphabet, Microsoft, and
Walmart over time.
ALPHABET
Under the Alphabet corporate umbrella, Google (GOOG), the
search giant, has been a prominent
competitor to as well as collaborator with Amazon. For
instance, Amazon’s tablets run on the Android
operating system. Moreover, Amazon also sells Google products
on its website (including Chrome
Cast and Nexus devices).
Google, for its part, has made significant inroads into the
mobile software technology space previ-
35. ously dominated by Apple. Since the company acquired the
Android open-source mobile platform in
2005, it has iteratively improved on the operating system such
that by 2017, Android was the operating
system (OS) employed by more than 80% of phones
worldwide.69 The most popular of these by far has
been the Samsung Galaxy line, whose brand recognition has
eclipsed that of Android since 2011.70
To be sure, the combination of Google software and Samsung
hardware has produced a smartphone
that has posed the greatest threat to Apple’s traditional
dominance of the smartphone space. Although
Apple holds less than 20% market share with its iOS mobile
operating system, it does capture most of the
profits generated in the smartphone industry.
Google itself tried its hand in producing its own phone through
its acquisition of Motorola Mobility
for $12.5 billion in 2012.71 72 However, the endeavor lasted all
of 22 months as Google offloaded the
handset business to Lenovo in January 2014 for the modest
price of $3 billion, while retaining Motorola
Mobility’s patents. In particular, Google was able to maintain
control of the more than 17,000 patents
that were acquired in the 2012 deal, protecting handset
manufacturers using the Android operat-
ing system against patent infringement.73 In October 2016,
Google launched the Google Pixel XL, its
second attempt at a smartphone, and is expected to sell nine
million smartphones in the first year.74
Google has likewise made inroads in the tablet business. The
company has adapted the Android
OS for use in tablets; in July 2012, it launched the Nexus 7,
manufactured in partnership with Asus,
36. and in November 2012, the 10-inch version (Nexus 10),
manufactured by Samsung.75 Android-based
tablets tend to be smaller and cheaper than their Apple
counterparts, as well as more customizable to
user specifications.76 As a result, their popularity with
consumers grew rapidly: By 2013, more than
half of all tablets shipped were Android-based.77 Consequently,
Android tablets overtook the iPad in
popularity by the end of 2013. Indeed, Android tablet sales were
estimated at 120.9 million units for
2013, equivalent to almost 62% of the market, whereas iPad
sales accounted for 70.4 million units, or
36%.78 79 With the addition of the Google Chromebook to the
tablet family, Google has been able to
make further gains on Apple. The laptop lookalike is affordable,
boots up in seconds, and comes with
Google’s most popular apps pre-installed, which are free and
remotely run. This cloud-based func-
tionality limits the Chromebook in a home or business setting
given that it requires perpetual con-
nection to broadband internet. However, in an education setting,
the Chromebook has quickly gained
traction as a cost-effective alternative to iPads and laptops, both
of which ideally require the student
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Amazon.com, Inc.
13
37. to have their own device, and for productivity software to be
purchased. The cloud-based nature of the
Chromebook means that students, particularly those at schools,
can use any Chromebook to access
their work, returning the device at the end of the class for the
next student’s use.80 81 Google’s online
portal, Google Play, rivals Apple’s iTunes as a means by which
to provide an ecosystem to Android
users where games, apps, music, and much more can be
accessed. The Play Store has 2.6 million apps
on offer to customers as opposed to iTunes 2.2 million apps,
and in 2013, for the first time ever, app
downloads from the Play Store outstripped downloads from the
Apple App Store.82
Google has gone on to innovate on the use of its legendary
search engine, evolving to offer more
content for consumers. Traditionally, Google wanted users “out
of Google and to the right place as
fast as possible.” Now, Google is offering reviews, photos, and
other content that keep browsers on the
Google page longer, transforming its core business into one that
adds value via enhanced content.
To better compete with Amazon, Google is also planning a
deeper dive into online commerce with
its “buy” button, a tool expected to behave much like Amazon’s
one-click ordering feature. Google
is adding the buy button to its promoted mobile search results
which will redirect customers to a
purchase page. The merchants will still handle actual product
fulfillment, although the page will be hosted
by Google.83 Such efforts are intended to streamline Internet
shopping by deterring consumers from
switching their searches from Google to Amazon.84
38. To further compete with Apple and Amazon, Google launched
its own TV set-top box in mid-2014.
The company already had Chromecast, its own dongle-based
devices for TV, which allows users to
stream content from the internet using smartphones, tablets, and
computers—all while running Google
Chrome and using the browser as a remote control.85 The set-
top box introduction was Google’s
attempt to gain a larger slice of the growing TV-streaming pie
for which it competed with Apple and
Amazon.
Finally, Google has signaled an ambition far beyond that of
search engines, operating systems, cloud
computing, mobile devices, and so forth. The company appears
to be positioning itself to not only
offer its current plethora of services, but also to have a major
role in how those services are delivered
through Google Fiber and its push to sell wireless service direct
to consumers. Google Fi is the com-
pany’s attempt to provide fast, cost-effective internet services
and circumvent the traditional broad-
band providers. By rolling out high-speed internet services to
the geographic areas that most demand
it, the company is redefining how broadband internet services
are offered. Traditionally, rollouts were
completed by the likes of AT&T or Comcast by blanketing
entire cities, not just distinct geographic
areas where demand for such infrastructure was highest.86 In
the area of wireless, Google has struck
deals with Sprint and T-Mobile to resell service on their
networks, allowing the company to push wire-
less service under its own name. In addition, using proprietary
technology, Google Fi stitches together
free broadband wireless connection by leveraging
39. complementary hotspots offered in places such as
Starbucks and elsewhere. Google Fi is likely to not only
improve speeds but also lead to price cuts in
an industry that is already experiencing tremendous downward
pressures on prices.87
ALIBABA
The Alibaba Group is China’s largest e-commerce company, and
one of the largest tech companies
globally.88 In particular, Alibaba is a family of e-commerce
businesses, which The Wall Street Journal
described as “comparable to eBay, Amazon, and PayPal all
rolled into one, with a stake in Twitter-like
Weibo thrown in to boot.”89 Alibaba’s main trading platforms
are Taobao and Tmall, which handle
more transactions each year than Amazon and eBay
combined.90
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University from Jun 2019 to Dec 2019.
14
Amazon.com, Inc.
Alibaba was founded by Jack Ma, an English teacher in the city
of Hangzhou (in close proximity to
Shanghai), and struggled to gain traction and the attention of
investors in its early days.91 92 Since then,
the company has gone on to dominate Chinese e-commerce with
40. more than 600 million subscribers,
more than 80% share of the country’s e-commerce market, and
annual transactions to the tune of half
a billion dollars. Despite all its success in China, the company
is still largely unknown in the Western
world. Its market leadership is intrinsically tied to the portal’s
success in breaking through the myriad
of barriers that exist in China when it comes to trade and
establishing a platform where buyers and
sellers can confidently and efficiently transact.93 For example,
Alibaba was able to overcome China’s
low-trust business environment by introducing a set of country-
specific innovations. As an example,
Alipay, Alibaba’s online payment platform, holds a buyer’s
payment in escrow until the buyer indicates
satisfaction with the merchandise received.
On September 19, 2014, Alibaba went public on the New York
Stock Exchange (NYSE). It had the
most successful initial public offering ever, surpassing a stock
market valuation of over $230 billion
on its first day of trading. By summer 2017, Alibaba’s market
cap stands at a record high of $320
billion by summer 2017, making it one of the most valuable tech
companies globally. In comparison,
Amazon’s market cap was some $465 billion at the same time.
In 2017, Alibaba employed around
50,000 people, had $23 billion in revenues, and remained highly
profitable, capturing more than 50
percent of its revenues as profits. In the same year, Alibaba’s
marketplaces in China reported sales
of some $550 billion.
Exclusively a trading platform for third party vendors, Alibaba
does not hold or own any inventory,
unlike Amazon. Alibaba’s main source of revenue is the
transaction fees, listing fees, and the ad-revenues
41. it generates from more than 10 million active sellers across its
marketplaces. In contrast to Amazon,
Alibaba does not carry nor own any inventory, it is an open
online trading platform. This asset-light
model of Alibaba means that it has more room to push down
prices on its platform by reducing
transaction costs for its sellers. As both Alibaba and Amazon
focus on a cost leadership strategy, the
agility of Alibaba to reduce prices due to its asset-light model
could turn out to be a competitive
advantage for the Chinese firm.
The Alibaba Group comprises four primary portals: Taobao,
Tmall, Alibaba.com, and Aliyun (now
AliCloud). Among the four portals are hundreds of millions of
users accessing the sites, and millions
of businesses relying on the portals to connect them with
potential buyers. Taobao is Alibaba’s flag-
ship online marketplace, a consumer-to-consumer retail
platform with seven million sellers offering
over 800 million items.
The company’s Q1 (first quarter) report of 2016 highlighted just
how popular and successful
Taobao is: It generated some $450 billion in gross merchandise
volume.95 Tmall, by contrast, is a
business-to-consumer retail platform that was spun out of
Taobao in 2011. This portal generated over
$120 billion in gross merchandise volume, approximately half
that of Taobao. Alibaba.com is engaged
in wholesale business-to-business e-commerce, but it generates
far lower transaction volumes than
Taobao and Tmall.96
In 2009, Alibaba launched Single’s Day, similar to Amazon
Prime Day, held on 11 November (11/11)
42. every year. Similar to Cyber Monday in the U.S. (the Monday
following Thanksgiving, with exceptional
online bargains), Alibaba offers special 24 hour sales online. In
2016, Single’s Day generate $18 billion in
revenue for the ecommerce giant.97
Critical to the success of Alibaba’s e-commerce is the
company’s ability to engender confidence in
transacting online. In particular, the company’s Alipay service
was instrumental in that it possible for
consumers to put money in escrow, allowing buyers to verify
any purchased goods before releasing
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Amazon.com, Inc.
15
money to the seller. In this way, the company overcame China’s
notoriously weak consumer protec-
tion laws and brought confidence to the online e-commerce
market. Launched in 2004, and spun out
of Alibaba as Ant Financial in 2011, the former Alipay has
grown tremendously, and by 2014 con-
trolled half of China’s online payment market.98 In China, Ant
Financial offers a wide range of services
including banking and investments as well as the country’s first
credit-scoring offering. In China, Ant
Financial has some 500 million customers, and is rapidly
43. expanding internationally.99 Ant Financial
is preparing to IPO in the near future with a valuation north of
$60 billion.
100
Alibaba’s meteoric growth also includes significant investments
in Sina Weibo (China’s version of
Twitter), Yoku Todou (China’s version of YouTube), and
Kuaidi Dache (a taxi hailing app similar to
Uber).101 AliCloud, the firm’s lesser known cloud service
offering, is Alibaba’s alternative to Amazon
Web Services. While it was only 3% of the 2016 total revenues,
it has been experiencing some 130%
year-on-year growth in 2016.
102
As Alibaba tries to expand globally, AliCloud agreed to a 12-
year partnership with the International
Olympic Committee (IOC) in 2017 during Jack Ma’s visit at the
World Economic Forum in Davos,
Switzerland. Following a meeting with President Trump, Jack
Ma promised to create one million jobs
in the United States and open up opportunities for small- and
medium-sized U.S. firms to sell their
products and services in China.103 It is also worth noting that
China’s protectionist government, cul-
ture, and scale raises formidable barriers to entry for any
foreign market entrants, such as Amazon.
MICROSOFT
Founded in 1975, Microsoft Corporation is headquartered in
Redmond, Washington, a suburb of
Seattle, and Amazon’s home town. It also produces a wide range
44. of software and hardware products
ranging from its search engine (Bing), to tablet computers
(Microsoft Surface), and video game consoles
(Xbox, Xbox One, and Xbox 360). In the early decades of the
PC revolution, Microsoft was the undis-
puted leader. With its Windows operating system, Microsoft set
the standard in the world of personal
computers. Some 90 percent of all PCs run Windows. Once
users were locked into Windows, which
generally comes pre-loaded with the computer they purchased,
they then wanted to buy applications
that run seamlessly with the operating system. The obvious
choice for users is Microsoft’s Office
Suite (containing Word, Excel, PowerPoint, Outlook, and other
software programs). Microsoft’s business
model was to create a large installed base of users for its PC
operating system and then make money
from selling application software such as its ubiquitous Office
Suite.
Microsoft then went on to replicate with its corporate customers
this hugely successful business
model of setting the standard in operating systems combined
with bundling discounted applica-
tion suites. Once servers became ubiquitous in corporations,
Microsoft offered IT department e-mail
systems, databases, and other business applications that were
tightly integrated with Windows. As a
consequence, some 80 percent of Microsoft’s revenues were
either tied directly or indirectly to its
Windows franchise.104 Microsoft’s strategy of focusing on
setting the industry standard allowed it
to create a strong strategic position and to extract high profits
for many years. Microsoft’s bundling
strategy with Office, combining different application services
that run seamlessly in one discounted
45. product offering, allowed Microsoft to overtake IBM, once the
most valuable tech company. By 2000,
Microsoft was the most valuable company globally with some
$510 billion in market capitalization.
Given Microsoft’s lackluster performance since 2000, however,
the once dominant company has
been in turnaround mode. In 2010, Microsoft marked its entry
into the cloud computing business
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University from Jun 2019 to Dec 2019.
16
Amazon.com, Inc.
with Azure. Microsoft has been a known presence with
corporations due to their standard offerings
of Microsoft Office, SQL Server, and Windows Server. In 2014,
Satya Nadella was appointed CEO to
reposition Microsoft for future success. The new CEO did not
waste any time. Satya Nadella’s strate-
gic focus shifted to move Microsoft away from its Windows-
only business model to compete more
effectively in a “mobile-first, cloud-first world,” the mantra he
used in his appointment e-mail as CEO.
Holding a press briefing a few weeks later, Satya Nadella
demonstrated new apps for Microsoft Office
for the iOS and Android ecosystems powered by the cloud. The
push for OneDrive – cloud storage
46. of documents that can be accessed from any device – along with
Office 365 is expected to grow
the one billion Microsoft Office users by placing Azure at the
center of the ecosystem.105
What was
once known as the cloud for running .NET applications, Azure
has transformed itself into an open
infrastructure service for enterprises.
106
Office 365, Microsoft’s cloud-based software offering, is now
available as a subscription service. Software applications can be
accessed on any device, anytime,
with online storage, combined with Skype’s global calling
feature. Windows and Office, however, are
still generating 40% of revenues and some 75% of profits, but
both continue to decline. The problem
Microsoft faces is that the gross margin of “classic” PC-based
Office is an astronomical 90% (due to
Microsoft’s “monopoly” position), while the gross margin for
Office 365 is only around 50%. The cloud
computing space with Amazon, Alphabet (Google), Apple, IBM,
and others is also fiercely competitive.
As a direct competitor to Amazon Web Services, Azure’s cloud
computing business jumped 93% on
a year-over-year basis and is expected to generate $14 billion
annually.107 Satya Nadella believes that
Azure’s key differentiator of providing Software-as-a-Service
(SAAS) and Platform-as-a-Service (PAAS)
offerings will help it combat rival AWS.108
47. WALMART
Walart Stores Inc., doing business as Walmart, is a
multinational retail corporation that oper-
ates a chain of hypermarkets, discount department stores, and
grocery stores. As of December 2016,
Walmart operates some 12,000 stores in 28 different countries,
with roughly one half of all stores in
the U.S.109 Walmart also owns and operates Sam’s Club, which
is a membership-only, retail warehouse
club. With revenues of some $500 billion, the largest retailer in
the United States competes head-on
with Amazon’s e-commerce business.
To compete with e-commerce vendors more effectively,
Walmart launched Walmart.com that allows
users to order products online, view availability at nearby
stores, and get same-day pickup from stores.
To compete with Amazon Prime, Walmart launched The
Walmart Shipping Pass (in 2016) that pro-
vided free shipping on products with a $49 annual membership
fee. The minimum amount for free
shipping was set at $49 per transaction and shipping took
anywhere from 5–7 days. In January 2017,
Walmart announced that they are discontinuing the Shipping
Pass program to provide free two-day
shipping to all customers on qualifying orders of at least $35.
The membership fee has been dropped
and all existing customers of the Shipping Pass have been
refunded their membership fee. The new
program includes over two million items that local Walmart
stores carry.110
In August 2016, Walmart acquired e-commerce startup Jet.com
for $3 billion in cash and $300 mil-
lion in Walmart shares. The acquisition will help build on and
48. complement the foundation to serve
customers better through the Walmart app, and position the
company for faster e-commerce growth.
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University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
17
Jet.com is an e-commerce newcomer boasting two-day delivery
for orders over $35. Their motto states
that their “prices drop as you shop,” providing discounts for
larger purchases. All grocery items are
available on Jet.com and they claim to appropriately pack
frozen and perishable products to keep
them cold even if the recipient isn’t home for the delivery. Jet
is expected to reach a $1 billion run
rate within the first year, with an expected monthly user base
growth of 400,000 customers and 25,000
daily processed order.111
Where to Next?
As Jeff Bezos prepared for the following day’s meeting with
executives and investors the following
morning, he thought about Amazon’s plans for the near future.
Bezos knew what it was like both to
disrupt business, and to be disrupted. He had no doubt that
while short-term results were by no means
49. stellar, long-term results would prove that Amazon’s disruption
of tech giants like Apple, Alphabet,
and Microsoft was the right strategy. Moreover, he worried
about international growth, and the impact
of Alibaba. While Amazon was once a student of Walmart’s
logistic system, now the Arkansas-based
retail giant seems to be on the rebound as it is investing heavily
in its online offerings and is taking on
Amazon directly. In addition, Walmart is experimenting with a
hybrid, omni-channel approach (order
online, pick up in store) that poses a potential threat to Amazon.
Yet, he still wrestled with the question of, where to next? And
how would he and the executive team
manage the expectations of investors who were pressuring the
company to focus on profitability, and
to consider spinning out AWS as a separate business. Bezos had
always maintained, “If we [at Amazon]
could find something differentiated that we thought customers
would like, it would be super fun.”112
He had already started drone-based delivery, brick-and-mortar
stores, and one-hour delivery, but
how would Amazon fit all of its innovations in its product mix?
How would Amazon’s wide-ranging
and powerful rivals respond to the company’s innovations? And
more importantly, would customers
be receptive to the company’s innovation and differentiation,
and help calm investor skepticism of
Amazon’s strategy?
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50. 18
Amazon.com, Inc.
Source: Depiction of publicly available data.
EXHIBIT 1 Amazon’s Revenue, Net Income, and Operating
Expenses ($ million), 1996–2016
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
0
1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Revenue Operating Expenses Net Income
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
19
EXHIBIT 2 Amazon Key Events and Market Capitalization ($
billion), 1994–2017
Source: Depiction of publicly available data.
500
450
400
350
300
250
200
150
100
50
0
52. 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
2016 2018
Jul 1994
Jeff Bezos Conceives
of Amazon
Jul 1995
First Book
Sold
Sep 1997
One-Click
Shopping
Launched
Oct 1998
First International Sites: .co.uk and
.de (United Kingdom, Germany)
Mar 2000
Dot Com Bubble Bursts
Nov 2000
Marketplace
Launched
Mar 2006
Amazon Web
Services (AWS)
Launch
Nov 2007
First Kindle
e-Reader
53. Mar 2012
Kiva Systems Aquired
(Warehouse Robotics
Company)
Sep 2011
Kindle Fire Tablet
Goes on Sale
Dec 2013
Prototype Drone
Delivery
Dec 2016
First Drone Delivery
Aug 2007
Amazon Fresh Grocery
Service Launched in Seattle
May 1997
Initial Public
Offering (IPO)
Nov 2010
Launch of “Price Check”
Barcode Reader App
Dec 2003
First profitable year
Feb 2005
Prime
Membership
Opens
54. Dec 2016
AmazonGo Prototype
Jan 2017
Air Cargo Hub in Kentucky
Feb 2015
AmazonCampus
Nov 2014
Amazon Echo
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University from Jun 2019 to Dec 2019.
20
Amazon.com, Inc.
EXHIBIT 3 Normalized Stock Performance of Amazon vs.
NASDAQ-100 Index
(in percentage points), 2007–2017
Source: Depiction of publicly available data.
2,500%
2,000%
1,500%
55. 1,000%
500%
0%
-500%
Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15
Jan 16 Jan 17
Amazon
NASDAQ-100 Index
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Amazon.com, Inc.
21
EXHIBIT 4 Amazon Web Services (AWS) Quarterly Net Sales
($ billion), 2014–2016
Source: Depiction of publicly available data.
$4.00
$3.50
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22
Amazon.com, Inc.
EXHIBIT 5 Amazon’s Key Financial Data ($ millions, except
EPS data), 2012–2016
Fiscal Year 2012 2013 2014 2015 2016
Cash and short-term investments 11,448 12,447 17,416 19,808
25,981
Receivables (total) 3,817 4,767 5,612 5,654 8,339
Inventories (total) 6,031 7,411 8,299 10,243 11,461
Property, plant, and equipment (net total) 7,060 10,949 16,967
21,838 29,114
Depreciation, depletion, and amortization (accumulated) 2,522
3,860 5,763 8,215 13,327
Assets (total) 32,555 40,159 54,505 64,747 83,402
Accounts payable (trade) 13,318 15,133 16,459 20,397 25,309
Long-term debt 3,084 3,191 8,265 8,227 7,694
Liabilities (total) 24,363 30,413 43,764 51,363 64,117
Stockholders’ equity (total) 8,192 9,746 10,741 13,384 19,285
Sales (net) 61,093 74,452 88,988 107,006 135,987
Cost of goods sold 45,971 54,181 62,752 71,651 88,265
Selling, general, and administrative expense 9,723 12,847
16,650 20,411 27,284
Income taxes 693 317 483 869 1,671
Income before extraordinary items -39 274 -241 596 2,371
Net income (loss) -39 274 -241 596 2,371
58. Earnings per share (basic) excluding extraordinary items -0.09
0.6 -0.52 1.28 5.01
Earnings per share (diluted) excluding extraordinary items -0.09
0.59 -0.52 1.25 4.9
Source: Tabulation of publicly available data from Amazon
Annual Reports, multiple years.
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Amazon.com, Inc.
23
EXHIBIT 6 Key Financial Metrics of Amazon, Alibaba,*
Alphabet, Microsoft, and Walmart
($ billion, as of December 31, 2016)
Source: Depiction of publicly available data.
* Alibaba releases annual reports in March.
$600
$500
$400
$300
59. $200
$100
$0
Amazon Alibaba Alphabet Microsoft Walmart
Revenue Operating Expenses Gross Profit
135.99
15.9
90.27 85.32
482.13
43.54
5.93
31.42 32.36
97.04
47.72
10.5
55.13 52.54
121.15
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
60. 24
Amazon.com, Inc.
EXHIBIT 7 Market Capitalization of Top-5 Tech Firms and
Walmart
($ billion, as of December 31, 2016)
Source: Depiction of publicly available data.
$700
$600
$500
$400
$300
$200
$100
$0
W
al
m
ar
t
62. 494.56
562.59
693.17
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This document is authorized for use only by mengci Liu in MET
AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
25
EXHIBIT 8 Stock Price Comparison: Amazon, Alibaba,
Alphabet, Microsoft, and Walmart
(in percentage points), 2014–2017
Source: Depiction of publicly available data.
160%
140%
120%
100%
80%
60%
63. 40%
20%
0%
20%
-40%
Jul 14 Oct 14 Jan 15 Apr 15 Jul 15 Oct 15 Jan 16 Apr 16 Jul 16
Oct 16 Jan 17
Amazon
Alibaba
Alphabet Walmart
Microsoft
No
rm
al
iz
ed
P
er
ce
nt
ag
e
Ch
64. an
ge
in
S
to
ck
P
ric
e
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
26
Amazon.com, Inc.
Endnotes
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2 S. Fiegerman, “Amazon Stock Tanks After Disappointing
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4 The case author bought his first book on Amazon during its
early days. He was amazed at how smooth the
transaction went, and was pleasantly surprised to receive
personalized emails from Amazon’s customer service
reps.
5 G. B. Knecht, “ Wall Street Whiz Found a Niche Selling
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6 “Amazon.com, History,” Hoovers.com, accessed June 14,
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7 “Amazon.com Splits Stock, Makes Acquisitions,” Reuters
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8 “Amazon.com, History,” Hoovers.com, accessed June 14,
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9 G. Wiles, “Amazon.com to Acquire China’s Joyo.com for $75
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20 K. Webley, “A brief history of online shopping,” Time, July
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For the exclusive use of m. Liu, 2019.
This document is authorized for use only by mengci Liu in MET
AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
27
22 S. Chaudhuri, “Amazon unveils its new virtual currency
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23 C. O’Connor, “Amazon’s Whole Slaughter: Jeff Bezos’ $8
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25 D. Reisinger, “Watch Amazon’s Prime Air Complete its first
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26 D. Reisinger, “Amazon is Considering Drone-Friendly
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27 G. Bensinger, “Amazon unveils ‘Fire Phone’ Smartphone,”
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28 J.P. Mangalindan, “Why Amazon’s Fire Phone Failed,”
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29 E. Spence, “Android Circuit: Samsung’s Profits Crash,
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30 M. Rogowsky, “Is Apple Nearing 20 Million iPhone 6 Sales
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32 D. Etherington, “Apple Made Over $1B on the Sale of
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34 E. Brown, “Amazon Launches Stick Version of Fire TV
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35 J. Jamerson, “Amazon Appstore Nearly Triples Selection,”
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36 G. Bensinger, “Amazon Launches Music-Streaming
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37 A. Diallo, “Amazon Launches Fire TV, Offering Voice
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38 S. Russolillo, “A Blow to Netflix: Amazon, HBO Team up,”
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39 C. Loterina, “Netflix vs Amazon Prime Video: Which
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amazon-prime-video-
which-streaming-service-is-better-for-2017-and-onward.htm.
For the exclusive use of m. Liu, 2019.
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
28
Amazon.com, Inc.
40 G. Bensinger, “Amazon to Begin Producing, Acquiring
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1421687531.
41 D. MacMillan, and G. Bensinger, “Amazon to Buy Video
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71. 42 J. Dunn, “It’s Been a Good Year for Amazon Echo,”
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43 “How Voice Technology is Transforming Computing,”
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44 T. Bishop, “The Cost of Convenience: Amazon’s Shipping
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45 L. Thomas, “Amazon Fires Back at Wal-Mart By Slashing
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46 S. Soper, “Amazon Building Global Delivery Business to
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47 “Here’s How Amazon is Flexing Its Muscle in Air Cargo,”
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49 “Amazon, The World’s Most Remarkable Firm, Is Just
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50 M. Shields, “Amazon Earned over $600 Million in Ad
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51 R. Winkler and G. Bensinger, “Amazon Prepares Online
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52 G. Bensinger, “Amazon Robots Get Ready for Christmas,”
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53 G. Bensinger, “Amazon Makes a Push on College
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54 K. Benner, J. Xu Klein, and L. Coleman-Lochner, “Amazon
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55 L. Stevens, “Amazon Delays Opening of Cashierless Store
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56 J. Bort “Amazon’s Cloud is An Unstoppable Train That
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University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
29
59 “Amazon, the world’s most remarkable firm, is just getting
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60 G C. Ford, “Amazon.com to begin Collecting Iowa sales tax
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61 T. Fairless, “EU Competition Watchdog Investigates
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63 “Amazon, the world’s most remarkable firm, is just getting
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64 Ibid.
65 Ibid.
66 2016 Amazon Annual report, page 4 “Competition.”
67 J. Deighton, and L. Kornfeld , “Amazon, Apple, Facebook
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69 J. Vincent, “99.6 percent of new smartphones run Android
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
30
Amazon.com, Inc.
80 C. O’ Brien, “Why Google’s Chromebooks Are Beating
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82 R. Winkler, “Google Play Emerges as Powerful Weapon for
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85 R. Winkler, “Google Readies TV Set-Top Box in Race with
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87 R. Knutson and A. Barr, “Google to Sell Wireless Service in
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88 A Detailed Account of Alibaba is Provided by D. Clark,
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89 “China Changes Won’t Faze Alibaba,” Wall Street Journal,
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78. 90 “China’s Internet Giants Go Global,” Economist, last
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91 J. Osawa, P. Mozur, and R.Winkler, “Alibaba Flexes
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93 Ibid.
95 Data drawn from The Alibaba’s Group Annual Report 2016,
filed on March 31, 2016.
96 T.J. Hui, “Alibaba: The Giant with 81.5% Market Share in
China’s Online Shopping
Market,” Sharesinv.com, November 9, 2015,
http://www.sharesinv.com/articles/2015/11/09/
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97 “Can Alibaba’s Cloud Compete with Amazon and
Microsoft,” Investing.com, last modified January 24, 2017,
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with-amazon-200173323.
98 T.J. Hui, “Alibaba: The Giant with 81.5% Market Share in
China’s Online Shopping Market.”
79. 99 “China’s internet giants go global,” Economist, April 20,
2017.
100 “Can Alibaba’s Cloud Compete with Amazon and
Microsoft”, Investing.com, January 24, 2017
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AD 715 - Summer 2 2019 taught by Kelli Farrington, Boston
University from Jun 2019 to Dec 2019.
Amazon.com, Inc.
31
101 T.J. Hui, “Alibaba: The Giant with 81.5% Market Share in
China’s Online Shopping Market.”
102 Alibaba Group Holdings Quarterly Report, January 29,
2015.
103 R. Knutson and L. Stevens, “Alibaba’s Jack Ma: China-
U.S. Relationship Should Be ‘More Friendly,’” Wall
Street Journal, last modified January 9, 2017,
https://www.wsj.com/articles/alibabas-jack-ma-china-u-s-
relation-
ship-should-be-more-friendly-1483989482; and “Can Alibaba’s
Cloud Compete with Amazon and Microsoft”,
Investing.com, last modified January 24, 2017.
104 “Microsoft at Middle Age: Opening Windows,” Economist,
last modified April 4, 2015, http://www.econ-
omist.com/news/business/21647612-once-dominant-software-