Amazon, A Fusion of

Digital & Physical

Experiences

Prof. Miquel Llado

Bucharest, October 17, 2017
mllado@iese.edu
Miquel Llado
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 and

Offline
Online
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Todays Agenda
1 Why are we here?
2 Small groups discussion
Article: The Amazon-Whole Foods Deal
means every retailers three-year-plan is
obsolete.
25 minutes

2 General session
Amazon, A Fusion of Digital & Physical
Experiences
60 minutes
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 In Small Groups

1 Amazon greatest How is the supermarket

competitive industry?
advantage?
How is the online
2 Your assessment of
industry?
Amazon innovations
overtime?
3 How are Amazon
innovations teams?
4 Will Amazon get in my
Sector-Industry?
25 minutes
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I cannot teach anybody anything.
I can only make them think

Socrates

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Strategy books 375.253
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Appendicitis books 637
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Best book

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Digital

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Globalization
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Both ways
Fast
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 Markets are not
geographical anymore
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Adam Smith Alfred D. Chandler, Jr.
(1723-1790) (1918-2007)

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We all have two
great gifts: our
mind and our
time. It depends
on us, what we do
with them

Robert Kiyosaki
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Formulation

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Be ahead Read the future 18
Fall in love with the future
Think ahead

Fall in love with the Future

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The main thing
that has caused
companies to fail,
in my view, is that
they missed the
future Think of your
sector
Which changes
do you foresee?
Whats gonna change in the
Larry Page coming 10 years?
Founder Google
What is not going to change in the
coming 10 years?

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Michael Porter

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My Environment Analysing Industry Dynamics

Porter 5 forces New entrants threat Barriers of Entry

Suppliers Industry Clients

Negotiation Power Negotiation Power
Competitors

Above and
Alternative
beyond your
sector!
Products
threat
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Lazy?

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California garage
Steve Jobs garage 24
Finding the Opportunity

Unfulfilled needs

Pains Bottle-necks

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Pains

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Bottle-necks

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Ignoring

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 Jack Ma

World's largest online business, with

some 100 million shoppers a day and
higher revenues than Amazon and eBay
combined , USD 170 B
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Implementation
Transfagarasan, Transylvania, Romania

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Its about people
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High Performance Teams
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In Amazons early years, Jeff
Bezos grilled every job candidate
himself
CNBC Market 25 Aug 2017

In Amazon's early days, each employee

played a key role, so the quality of new
hires was as crucial to the success of the
company as the products it put out. In that
time Bezos was not only hyper-focused on
creating an outstanding customer
experience, but he was fastidious about
hiring the strongest employees possible,
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 Love
the ball

Take
the lead
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Leo Messi
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Best office!
Faster delivery
Lower prices
Large variety

Jeff Bezos
CEO Amazon

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Jeff Immelt
CEO, General Electric
2001-2017

Best executives,
see more!
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Formulation &
Implementation
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 In Small Groups

1 Amazon greatest How is the supermarket

competitive industry regarding
advantage? consumers/shoppers?
2 Your assessment of
How is the online
Amazon innovations
industry regarding their
overtime?
consumers/shoppers?
3 How are Amazon
innovations teams?
4 Will Amazon get in my
Sector-Industry?
25 minutes
42
How is the supermarket industry?

How is the online industry?

43
My Environment Analysing Industry Dynamics

Porter 5 forces New entrants threat Barriers of Entry

Suppliers Industry Clients

Negotiation Power Negotiation Power
Competitors

Above and
Alternative
beyond your
sector!
Products
threat
44
 Amazon greatest
competitive advantage?

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Your assessment of
Amazon innovations
overtime?

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 How are Amazon
innovations teams?

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Supermarkets will be under great pressure to
reinvent themselves. Almost lost in the seismic
news this week was the opening of the first 10 Lidl
stores in the U.S. along with Aldis remodel and
expansion program which I discussed last week.
Supermarkets now face a formidable Amazon/Whole
Foods combo with better buying power and
innovation and a growing threat from discounters.
Margins will be under pressure and we will likely see
more M&A activity as they figure out their next steps.
The old standbysbetter service, better fresh food,
more foodservice optionswill be mission critical as
the center store faces unprecedented pressures

Forbes, June 10, 2017

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SAN FRANCISCO Google and Walmart are testing
the notion that an enemys enemy is a friend.
The two companies said Google would start offering
Walmart products to people who shop on Google
Express, the companys online shopping mall. Its the
first time the worlds biggest retailer has made its
products available online in the United States outside
of its own website.
The partnership, is a testament to the mutual threat
facing both companies from Amazon.com. Amazons
dominance in online shopping is challenging brick-
and-mortar retailers like Walmart, while more people
are starting web searches for products they might buy
on Amazon instead of Google

New York Times, August 2017

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Will Amazon get in my
Sector-Industry?

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 Get the most of
New Technologies
Its not just IT
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My Environment Analysing Industry Dynamics

Porter 5 forces New entrants threat Barriers of Entry

Suppliers Industry Clients

Negotiation Power Negotiation Power
Competitors

Above and
Alternative
beyond your
sector!
Products
threat
57
Lazy?

58
 Love
the ball

Take
the lead
59
Jeff Immelt
CEO, General Electric
2001-2017

Best executives,
see more!
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 The
Visible
Hand
mllado@iese.edu
Miquel Llado

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