Competitive Edge
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Creating your Unique Value Proposition to gain your Competitive Edge.
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17 charts that show just how scary Amazon's $275 billion business really is

17 charts that show just how scary Amazon's $275 billion business really is | Competitive Edge | Scoop.it

REUTERS/Shannon StapletonAmazon CEO Jeff Bezos.Most people think of Amazon as an online shopping store, but it's actually much more than that.

Over the past 22 years, Amazon has turned itself into a $275 billion juggernaut that sells everything from cloud-computing services to its own hardware gadgets.

These 17 charts show just how scary its business really is.

Read more: click image or title.

 

 

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Via Enzo Calamo
Marc Kneepkens's insight:

Here is what happens when a business keeps on investing in #growth, while ignoring profits. 17 impressive charts. Find out how #Amazon has surpassed #Walmart.

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Marcos Santiago's curator insight, March 28, 2016 8:38 PM

Here is what happens when a business keeps on investing in #growth, while ignoring profits. 17 impressive charts. Find out how #Amazon has surpassed #Walmart.

Marcos Santiago's curator insight, March 29, 2016 10:12 PM
when i first saw this article i was hoping to find a horrible thing that Amazon was doing, but i noticed that it wasn't really that they are doing something terrible, it is that they have a lot of power. with thousands of people shopping online, many of them turn to Amazon, because it is very easy to use and a lot of times there are many good products that people can buy. Amazon also went on to not only sell products, but also make their own. they also offer services such as watching movies. with millions of people shopping online, they become bigger and with more power everyday. a lot of people would prefer to shop online than to go to a store and buy things. the company has sold more than one of the biggest companies in the United States, Walmart. to conclude, Amazon is a growing company that will continue to grow and be worth more over the years, but also they are gaining a lot of money and power and who knows what they could try to do. this article doesn't seem biased, because it has a lot of facts and they are never saying that Amazon is a bad company. this article is reliable, because it has made research to argue their point. 
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Box, Dropbox and Hightail Pivot to New Business Models

Box, Dropbox and Hightail Pivot to New Business Models | Competitive Edge | Scoop.it


Box, Dropbox and Hightail are rethinking their core business models, focusing on specific industries or bolstering customer service.

SAN FRANCISCO — Nothing concentrates minds at a tech start-up like living in the middle of a price war between Amazon and Google.

Just ask executives at companies like Box, Dropbox and Hightail. They pioneered a new kind of Internet service that allows people and companies to store all kinds of electronic files in an easy-to-use online locker. But as often happens, the much bigger companies liked the idea so much they decided to do the same thing — at a much lower price.

“These guys will drive prices to zero,” said Aaron Levie, co-founder and chief executive of Box. “You do not want to wait for Google or Amazon to keep cutting prices on you. ‘Free’ is not a business model.”

So how do you avoid free? Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide.


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“It’s very tough just to be in the storage business,” said Brad Garlinghouse, the chief executive of Hightail. “We don’t think that is what we’re selling anymore.”

In the tech industry, they call this sort of reinvention of the core business model a “pivot.” Another way to describe it is a fight for survival.

Box, founded in 2005, has attracted $512 million in investment, and in March it filed papers for an initial public offering of stock. In July, the company said it had 39,000 businesses paying $15 to $35 a month a user. It is hard to know how many people that is, since some businesses have just a couple of people, and others include General Electric and Eli Lilly.

Dropbox has 300 million customers worldwide and actually runs inside Amazon Web Services, as do parts of Box. Many Dropbox customers pay nothing and get two gigabytes of storage capacity a month, the equivalent of 1,000 books or seven minutes of high-definition television. A version for $10 a month offers 100 gigabytes.

Hightail, which used to be called YouSendIt, says it has over a half-million business customers paying $25 a month or more, depending on the features chosen.

“There’s a place for all of them,” said Amita Potnis, an analyst at IDC. “Amazon’s focus is really computing itself. The smaller ones have to focus on ways businesses actually use it.” For example, she said, the services can help companies collaborate with each other online instead of sending emails back and forth with attachments.

While devices and apps get most of the attention, data storage is every bit as important, particularly as objects like phones, tablets, cars and thermostats become appendages of the Internet. Throw in trends like collaboration and big data analysis, and all those bits of data become more dynamic than something in a file cabinet. They are fluid and being entered and retrieved from many points.

Managing all that data should be a good business.

The problem for everyone is price. Amazon and Google have for years decimated competition in their respective fields of Internet advertising and retail. As the two companies move to dominate cloud computing, including online storage, they are turning that relentlessness on each other.

In March, Google celebrated the unification of several cloud computing services with price cuts of 68 percent for most customers, to 2.6 cents a gigabyte a month, about one-quarter the price of Dropbox’s premium consumer service.


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Amazon’s Web Services, which had cut prices at least four times since 2008, responded with cuts of its own, including one cut to 2.75 cents a gigabyte for large amounts of storage, and just a penny a month for data used less frequently. It has made further price cuts on other types of storage since then. Many expect Microsoft, which runs its own big cloud business, called Azure, to follow with similar cuts.

Even by the standards of computing, where services seem almost invariably to become cheaper and faster, storage prices have had an exceptional fall. The first gigabyte storage device in 1980 typically cost $120,000 and weighed 550 pounds. Amazon’s cloud-based storage might cost 12 cents a year.

None of the smaller online storage companies doubt that Amazon and Google can make seemingly impossible pricing moves. Both companies also have a scale that means even the tiniest profit can be huge. A.W.S. brags that almost all of Netflix, and Amazon itself, is inside its cloud, along with hundreds of other substantial companies.

Apple’s iCloud storage service and other parts of Apple, along with operations at several large banks, run inside A.W.S., say people familiar with the service who spoke on the condition they not be named so they could sustain relations with the powerful cloud company.

Amazon would not comment on confidential customer agreements. An Apple spokesman noted that Apple had its own data centers in four locations in the United States and said that “the vast majority” of data in services like iTunes, Maps and the App Store ran on its own computers. Apple uses other facilities as well, he said.

Google does not have anything like the Amazon customer list, but its computer network is probably the largest corporate network in the world. It includes custom-made computing and power systems and several thousand engineers to keep it running. According to one person with knowledge of the system, Google spends about $2 billion a quarter on its computing infrastructure.

Google would not comment on its costs. In an email, Tom Kershaw, a product manager for Google’s cloud service, predicted more cost-cutting. “As more customers store more information, for longer, we’re able to make gains in efficiency and pass these savings along to the customer.”

Both Box and Hightail now say they assume that they will offer customers unlimited storage free and push their costs into the prices they charge for other services. “At this point, it’s better just to say ‘unlimited,’ ” Mr. Levie said. “The thing to do is take into account why someone is storing something online and what their needs are.”

Box has hired people with specialties in health care, media and entertainment, hospitality and retailing. Dropbox still has supposed limits on storage in its business offering, but they start at a terabyte, or 1,000 gigabytes, and customers can upgrade from there with seemingly no fee.

This niche approach could work, provided the big companies do not go after these industry-specific storage markets or build more consumer-focused service offerings. Mr. Levie said he thought that was unlikely. “No one is going to build Google Health Care,” he said.

Google’s Mr. Kershaw differed. “Industry-specific solutions are the wave of the future and a key part of what Google is building for our customers,” he said.



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Marc Kneepkens's insight:

Coming up with a great idea in the tech world and putting it out is not a direct road to success anymore. Companies, even successful ones, need to adjust, pivot, and compete with corporations like Google and Amazon. Not an easy task. Complex world.

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The Dot Com story

The Dot Com story | Competitive Edge | Scoop.it

How it all started.

Old Testament computing....


In ancient Israel, it came to pass that a trader by the name of Abraham Com did take unto himself a young wife by the name of Dorothy. And Dot Com was a comely woman, broad of shoulder and long of leg. Indeed, she was often called Amazon Dot Com.

And she said unto Abraham, her husband, "Why dost thou travel so far from town to town with thy goods when thou canst trade without ever leaving thy tent?"

And Abraham did look at her as though she were several saddle bags short of a camel load, but simply said, "How, dear?"

And Dot replied, "I will place drums in all the towns and drums in between to send messages saying what you have for sale, and they will reply telling you who hath the best price. The sale can be made on the drums and delivery made by Uriah's Pony Stable (UPS)."

Abraham thought long and decided he would let Dot have her way with the drums. And the drums rang out and were an immediate success. Abraham sold all the goods he had at the top price, without ever having to move from his tent.

To prevent neighbouring countries from overhearing what the drums were saying, Dot devised a system that only she and the drummers knew. It was known as Must Send Drum Over Sound (MSDOS), and she also developed a language to transmit ideas and pictures - Hebrew To The People (HTTP).

And the young men did take to Dot Com's trading as doth the greedy horsefly take to camel dung. They were called Nomadic Ecclesiastical Rich Dominican Sybarites, or NERDS.

And lo, the land was so feverish with joy at the new riches and the deafening sound of drums that no one noticed that the real riches were going to that enterprising drum dealer, Brother William of Gates, who bought off every drum maker in the land. Indeed he did insist on drums to be made that would work only with Brother Gates' drumheads and drumsticks.

And Dot did say, "Oh, Abraham, what we have started is being taken over by others."

And Abraham looked out over the Bay of Ezekiel , or eBay as it came to be known.

He said, "We need a name that reflects what we are."

And Dot replied, "Young Ambitious Hebrew Owner Operators."

"YAHOO," said Abraham.

And because it was Dot's idea, they named it YAHOO Dot Com.

Abraham's cousin, Joshua, being the young Gregarious Energetic Educated Kid (GEEK) that he was, soon started using Dot's drums to locate things around the countryside.

It soon became known as God's Own Official Guide to Locating Everything (GOOGLE).

That is how it all began. And that's the truth.

Marc Kneepkens's insight:

Found this in my inbox this morning, though I'd share it here.


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Not Just An App: The Front End Of The Trillion-Dollar, Full-Stack Revolution

Not Just An App: The Front End Of The Trillion-Dollar, Full-Stack Revolution | Competitive Edge | Scoop.it

Stop calling Uber, Airbnb and Munchery just apps. These apps are the front end of a full-stack revolution powered by cloud, mobile, drones, robots and AI. These apps started as simple solutions to match demand and supply, but they have the potential to reinvent entire industries.

Today’s apps can best be compared to websites of the last tech revolution (or bubble) in late ’90s. The best of them, like Amazon, started as simple websites, but today invent drones, build robots and invest billions of dollars in all kinds of innovation and research to transform retail, logistics and even computing. Uber is beginning to show signs of that transformation with its move into driverless cars and maps — the other Uber-like winners will follow. Those that minimize what these apps do don’t understand that a full-stack revolution is afoot. Read more: click image or title.




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"The team at Growthink delivered exceptional quality service in every aspect of their client services. Their staff of professionals were extremely instrumental in fine tuning my creative vision into a well developed business plan."
- James E. Spence, Jr
Founder & CEO
At Bread Boutique

Marc Kneepkens's insight:

Simple #apps are re-shaping the world we live in and transforming entire industries. Pay attention, change is accelerating.

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A Rare Peek Inside Amazon’s Massive Wish-Fulfilling Machine | Business | WIRED

A Rare Peek Inside Amazon’s Massive Wish-Fulfilling Machine | Business | WIRED | Competitive Edge | Scoop.it
Through the engineering of its fulfillment centers, Amazon has built the world's most nimble infrastructure for the transfer of things. We step inside to see how the formidable system works.

The first thing I saw when I walked into Amazon’s Phoenix warehouse was a man riding on a giant tricycle. Behind him, yellow plastic tubs the size of office recycling bins whizzed by on a conveyor belt. On the wall above, six massive words called out to the 1,500 workers who pass through metal detectors each day as they enter this million-square-foot cavern of consumerism: “work hard. have fun. make history.”

To read the full article, click on the title or image.



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Marc Kneepkens's insight:

Wow! This brings up many questions. It looks like science fiction. Check out the pics.

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