Summary of “Amazon Prime is on pace to become more popular than cable TV”

Within a couple of years, more U.S. households could be subscribers of Amazon Prime than cable or satellite TV, according to recent estimates of Amazon’s popular shipping and entertainment service.
Based on Morningstar’s estimates of the average number of Prime memberships per household, that suggests about 66 million households have Amazon Prime memberships in 2017.
According to these estimates, more U.S. households may have an Amazon Prime subscription than a pay TV subscription in as soon as two years.
How we got there: If the number of Amazon Prime households increases by roughly the same pace it has, on average, for the past four years – almost 12 million per year – the number of Prime households in 2019 would be around 89 million.
Amazon knows that Prime is the core of its retail business: Prime members spend more in a year than non-Prime members do, shop more frequently than others and price-compare less, according to studies.
Correction: A previous version of this post and chart incorrectly displayed estimated Prime memberships as Prime households.
To more accurately estimate Prime households, we divided the number of memberships for the past three years by 1.2 and divided earlier years by 1.1.
We’ve updated the number of estimated U.S. households with Amazon Prime in 2017 to 66 million, instead of our previous figure of 79 million, which reflected memberships.

The orginal article.

Summary of “The Five Questions You Need to Answer About Your Startup’s Strategy”

Michael Porter wrote the seminal book on strategy in the early 1980s.
Called Competitive Strategy, I think it should be required for anyone starting a company.
Strategy is a seemingly murky amorphous intangible concept, but Porter brilliantly prescribes the five questions strategy should answer.
Amazon’s consumer value proposition is simple: the most selection at the best prices delivered fastest to all internet consumers in the US. How do you tailor the value chain to suit your company? Porter wrote about two different types of value chains: internal value chains and external ones.
As Joan Magretta writes in Understanding Michael Porter, “The essence of strategy and competitive advantage lies in the activities, and choosing to perform activities differently or to perform different activities from those of rivals.” This is what Porter means by tailoring the value chain to suit your company’s strategy: picking the internal activities that will differentiate it.
What trade-offs does your business offer to differentiate itself from competitors? Every strategy has a trade-off.
How strong is the value proposition across the value chain? This is a nuanced question that tries to get at the leverage the strategy creates in the business.
How does your strategy endure over time? If market conditions change, does your strategy survive? Bezos insulated Amazon’s strategy from the fickleness of the consumer by promising them three things they would always want: more, faster, cheaper.

The orginal article.

Summary of “Why I’m never signing up for Amazon Prime”

It’s open buffet season on consumer goods, and Amazon has that Prime ticket dangling in front of our ravenous faces.
Browse through Amazon even without the hyperactivity of Prime Day and you’ll see that deals are the norm rather than the exception.
Amazon Prime makes it unbelievably easy to shop unthinkingly.
That phenomenon has been so prominent with clothes that Amazon formalized it with the introduction of Amazon Prime Wardrobe last month.
Amazon’s presence in online retail is so influential nowadays that the majority of other major US retailers are throwing their own mini sales to fend off the effects of Prime Day.
As of today, this is a totally consumer-friendly effect of Amazon’s growing domination, but what happens over the long run? What if Walmart and every other retailer never catches up to Amazon and Jeff Bezos’ company ends up in a truly dominant position with no meaningful competition? Bezos himself advocates sternly against complacency, but having a monopolistic retailer of everything is a bad dependency to develop.
Everything about Prime that feels unbelievably cheap is only so because of the unbelievably cheap way that Amazon deals with the people discharging its duties.
You’ve got your own priorities in life and, in all honesty, nobody’s going to fix global injustice by disregarding Prime Day and taking a nice walk outside instead. But it makes me feel good to do exactly that, and so – in the ultimate expression of consumer choice – I’m opting not to consume Amazon’s enchanting deals elixir.

The orginal article.

Summary of “No Mercy No Malice”

AMZN + WFM = $1T. Amazon’s acquisition of Whole Foods, should it close, is the white flag in Amazon’s march to a trillion.
Amazon / Whole Foods will be the fourth-largest grocer in the US, and will likely post growth rates no $10B+ retailer, sans Amazon, has registered.
Amazon Media Group will now be able to sell online and offline media.
Amazon will use Whole Foods as an additional benefit of Prime, and more households will have Prime than cable TV within three years.
Operationally, it’s a shitshow, and even Amazon will likely struggle with the complexity of stores.
Amazon will shore up their brick-and-mortar competence, and dominance of affluent homes, and acquire Nordstrom or Macy’s.
As consumers find their neighbor / dad / aunt no longer has a job courtesy of Amazon, a state District Attorney will realize the fastest path to the Governor’s Mansion is to go after Amazon and will call for a breakup.
In sum, great for Amazon shareholders and consumers bad for everyone else.

The orginal article.

Summary of “Amazon Is Trying to Control the Underlying Infrastructure of Our Economy”

His vision is for Amazon to control the underlying infrastructure of the economy.
One study found that, after a retailer becomes a seller on Amazon, it’s only a matter of weeks before Amazon brings the merchant’s most popular items into its own inventory.
Last week, Amazon offered to police the many counterfeiters that sell fake Nike shoes on its site as a bargaining chip to get Nike to agree, for the first time, to offer a full line of its products to Amazon.
With commerce rapidly moving online, Amazon has positioned itself as lord of the realm, which means that online commerce is no longer a market in any meaningful sense of the word.
As Silicon Valley venture capitalist Chamath Palihapitiya put it last year, Amazon is “a multi-trillion-dollar monopoly hiding in plain sight.” That assessment explains why Wall Street has bid up Amazon’s stock value to a level that bears little relationship to its current profits.
Jeff Bezos’s big bet is that he can make buying from Amazon so effortless that we won’t notice the company’s creeping grip on commerce and its underlying infrastructure, and that we won’t notice what that dominance costs us.
Buying Whole Foods would help Amazon expand its control of commerce.
Should Amazon succeed in weakening UPS and FedEx, it would harm other online sellers and leave them dependent on their biggest competitor, Amazon, to deliver their goods.

The orginal article.

Summary of “What Amazon’s Purchase of Whole Foods Really Means”

Last week, two days before announcing that it would be acquiring Whole Foods, Amazon released a short promotional video for a new product called the Dash Wand.
It’s unsettling because it’s an accurate portrayal of our new mail-order way of life, which Amazon has spent the past twenty-two years creating.
It’s what you purchase when you become a member of Amazon Prime.
Amazon has created the world’s most efficient order-fulfillment system, including a network of warehouses and a delivery arm, Amazon Logistics.
Using them, it’s possible to run a whole company from within the Amazon ecosystem, with servers running in Amazon’s cloud and products stored in and shipped from its warehouses.
Amazon itself launches new businesses using the primitives it has mastered.
Many people have seen the Whole Foods acquisition as a way for Amazon to sell fancier groceries online, while using its larger scale and greater efficiency to lower prices.
In Thompson’s view, the acquisition is best understood as giving Amazon access to new, grocery-based primitives, such as fruit, vegetables, meats, and food-ready warehouses.

The orginal article.

Summary of “The Jeff Bezos Empire in One Giant Chart”

With a fortune largely tied to his 78.9 million shares of Amazon, the net worth of Jeff Bezos continues to be on the rise.
This puts Bezos just $4 billion away from displacing Bill Gates as the world’s number one billionaire – and if the stock continues upwards, he could take the title any day.
We’ve previously showed how Bezos built Amazon from scratch, but today’s infographic focuses on the extent and reach of Jeff Bezos and his Amazon Empire.
Amazon makes acquisitions and investments that relate to the company’s core business and future ambitions.
Bezos Expeditions manages Jeff Bezos’ venture capital investments.
Nash Holdings LLC is the private company owned by Bezos that bought The Washington Post for $250 million.
Bezos Family Foundation is run by Jeff Bezos’ parents, and is funded through Amazon stock.
It’s also worth noting that Jeff Bezos is the founder of Blue Origin, an aerospace company that is competing with SpaceX in mankind’s final frontier.

The orginal article.

Summary of “The real reason Amazon buying Whole Foods terrifies the competition”

Amazon’s takeover of Whole Foods sent the stock of competing grocery chains plummeting.
Nobody thinks Amazon bought Whole Foods in order to siphon off Whole Foods’ operating profits in order to subsidize something else.
A Whole Foods under Amazon’s stewardship will almost certainly accept lower profit margins than it does as an independent chain – and that spells trouble for everyone else in the grocery business.
Whole Foods tries to make money like a normal company Compared to other major American grocery store chains, Whole Foods is both a relatively young company and a relatively small one.
More subtly but perhaps more importantly, encouraging Whole Foods shoppers to in some sense “Log in” with their Prime accounts would generate tons of new user data that could feed the larger Amazon beast.
Of course lots of stuff that Whole Foods sells is canned, packaged, or dried – i.e., perfectly suited to Amazon’s longstanding and very successful e-commerce business.
The bottom line is there are lots of ways that a cheaper, but fundamentally similar, version of Whole Foods could contribute to the Amazon gestalt even while run as a zero-margin business.
Amazon, destroyer of worlds Of course the nightmare scenario for the supermarket industry is that acquiring Whole Foods does allow Amazon to fundamentally crack the grocery home-delivery game in a way that leads Kroger to go the way of Borders.

The orginal article.

Summary of “deadspin-quote-carrot-aligned-w-bgr-2”

By now, you’ve heard the news: Amazon plans to buy Whole Foods for $13.7 billion.
It’s too soon to say what Amazon officially plans to do with Whole Foods, but rumors have been circling and experts have a few predictions.
For one, it’s likely that Whole Foods will actually drop its notoriously high prices.
This could be good news even if you don’t shop at Whole Foods.
“This transaction is going to change the landscape of how you buy food,” Mickey Chadha, Moody’s vice president and senior credit officer who covers Whole Foods, told CNBC’s “Squawk Box” on Monday morning.
“Coincidentally, Whole Foods is slated to roll out a loyalty program of its own later this year and those enrolled will likely get direct discounts on select products.”They will push pretty heavily to integrate Whole Foods with Amazon, I’m sure there’ll be Prime rewards for shopping at Whole Foods,” Barnett says.
Amazon is already testing stores that allow customers to walk out without the hassle of checking out.
Again, it’s too soon to say what exactly we can expect, but considering Amazon has been trying to get into the grocery game for a while now, it’s likely that some big changes are in the works.

The orginal article.

Summary of “Amazon granted a patent that prevents in-store shoppers from online price checking”

Amazon’s long been a go-to for people to online price compare while shopping at brick-and-mortars.
Now, a new patent granted to the company could prevent people from doing just that inside Amazon’s own stores.
The patent, titled “Physical Store Online Shopping Control,” details a mechanism where a retailer can intercept network requests like URLs and search terms that happen on its in-store Wi-Fi, then act upon them in various ways.
The document details in great length how a retailer like Amazon would use this information to its benefit.
If, for example, the retailer sees you’re trying to access a competitor’s website to price check an item, it could compare the requested content to what’s offered in-store and then send price comparison information or a coupon to your browser instead. Or it could suggest a complementary item, or even block content outright.
Amazon CEO Jeff Bezos is not one to shy away from playing the long game, so it’s hard to say how this will factor into any of Amazon’s immediate plans, especially as its physical store initiatives are fairly new.
While the idea of a blocked price comparison search is annoying, it’s also the very sort of thing Amazon itself protests.
Amazon, along with other companies and nonprofit groups, have signed on to a “Day of action” to protest the FCC’s planned rollback of net neutrality rules.

The orginal article.