What will be the next strategy of Amazon and how are they going to execute it? That was the discussion when Alibaba came up with its triumphant $21.8 billion initial public offer proclaiming themselves as the most valuable ecommerce company in the world. During the first day of trading Alibaba was much ahead of Amazon and eBay combined. Alibaba’s e-commerce business includes wholesale, retail, group buying, and payments. . In the last 6 months they have invested $8 billion in startup firms and even entering into the US and European markets.
Alibaba doesn’t have a warehouse; they don’t sell directly, they just give an open marketplace for the sellers. Sellers include small business owners and big brands where they sell their products through the site- in short Alibaba connect sellers and buyers. This method is totally against the traditional retailing, but has helped them to get more profit than Amazon with a margin of 40% with $2 billion of earnings in the first quarter.
Amazon follows traditional retailing that is like a managed market space with massive warehouses, direct selling where the biggest brands sell directly. They provide a direct service and have a good track of customer service. In order to provide good service Amazon is forced to manage immense investments in infrastructure and greater number of workforce for a less amount of profit.
Both giants are designed for their home markets so they still have an upper hand in their home turfs and entry to the different region may not be easy especially for Amazon. Alibaba has a good mastery over the Chinese regulations and they know the pulse of the Chinese market. However, they don’t have the vast network and delivery systems like Amazon. The trust Amazon gained through cloud infrastructure, logistics services are a strong base for them and Alibaba will have to find their own solution to compete with that.
Amazon will have more work in the Chinese market since the market is’nt fully tapped, and one in with a good chance only if they are in sync with the regulations. In order to build the brands they may require more presence in the market by local acquisitions. At the same time Alibaba may have to reduce their rate of acquisitions and concentrate on logistics, cloud services, and on the USP s of Amazon.
Friday 26 September 2014
Wednesday 10 September 2014
Scottish Referendum in September 2014
The Scotts will decide whether they have to continue as a part of Great Britain on September 2014. When whole of Scotland goes for referendum on September 18, the Westminster will be in a sure dilemma about the future policies, if the Scotts vote yes for a separate country. Starting from shifting the Falsane Naval base now in Scotland, to the Olympic team who always bring more medals because of the Scottish talent.
The war for identity started in the 14th century, continued till 1707 when Scotland finally united with Britain making Great Britain. Then onwards Scotts were not truly happy with the various policies adopted by the UK government, which mostly favored Wales and England. This dissatisfaction was triggered by the favoritism of late PM Ms Margaret Thatcher, who gets the maximum credit for uniting Scotts with her policies, especially for Poll Tax in 1989 and thus being the most hated person among the Scotts.
This tax was a kind of community charge introduced by Tories (Conservative Party) who strongly advocated British Unionism, which was led by Ms Thatcher. She introduced this tax in Scotland as a trial run before imposing it in England and Wales. The Scotts still feel that they were treated as guinea pigs. Her policies on ship building, steel working and coal mining which were against Scottish interests added to the hatred against her.
Scotts are very confident about their oil reserves which were mishandled by Tories and want the control on the natural resources back. The Brits are against Scotts using Pound as their currency and even Sterling is not advisable since it may ruin the Scottish financial industry. Euro is permissible if the EU admits Scotland as the member of the EU. The regulations will be strict and how far a new country would be able to admit to that will be a question.
Future of the Scottish MP s will be at stake in the forthcoming general election in May 2015, since the official separation will take place only by March 2016. Another debate is on whether David Cameron will resign if the Scotland votes yes. Would Scotland continue with BBC or would they start SBC and how would Scottish companies listed in London react? Another big question will be whether Queen will remain as the Queen of Scotland.
The war for identity started in the 14th century, continued till 1707 when Scotland finally united with Britain making Great Britain. Then onwards Scotts were not truly happy with the various policies adopted by the UK government, which mostly favored Wales and England. This dissatisfaction was triggered by the favoritism of late PM Ms Margaret Thatcher, who gets the maximum credit for uniting Scotts with her policies, especially for Poll Tax in 1989 and thus being the most hated person among the Scotts.
This tax was a kind of community charge introduced by Tories (Conservative Party) who strongly advocated British Unionism, which was led by Ms Thatcher. She introduced this tax in Scotland as a trial run before imposing it in England and Wales. The Scotts still feel that they were treated as guinea pigs. Her policies on ship building, steel working and coal mining which were against Scottish interests added to the hatred against her.
Scotts are very confident about their oil reserves which were mishandled by Tories and want the control on the natural resources back. The Brits are against Scotts using Pound as their currency and even Sterling is not advisable since it may ruin the Scottish financial industry. Euro is permissible if the EU admits Scotland as the member of the EU. The regulations will be strict and how far a new country would be able to admit to that will be a question.
Future of the Scottish MP s will be at stake in the forthcoming general election in May 2015, since the official separation will take place only by March 2016. Another debate is on whether David Cameron will resign if the Scotland votes yes. Would Scotland continue with BBC or would they start SBC and how would Scottish companies listed in London react? Another big question will be whether Queen will remain as the Queen of Scotland.
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