Consumer Gains: Amazon's One-Day Delivery

Analysis By: Zohair Mirza

Link: https://www.wsj.com/articles/target-walmart-shares-take-hit-after-amazons-move-to-one-day-shipping-11556310486

Summary and Analysis:

Recently, when Amazon declared that its prime members will be getting One-Day shipping, that caused a decline in the shares of Target and Walmart. Rightly so, you order in the morning and by dinner, you have your order on the porch. No wonder it is so attractive to the consumer market. Understanding your consumer and deciding what is it that a company can deliver to make the consumer choose them over others.

Amazon is now looking to add ZIP codes and products to be able to implement. Clearly, it is a big step in that direction and an experience that is going to available more often. The logistics are something that still isn't as reliable and generally applicable to all of the United States. On paper, an idea of this sort seems doable but in reality, it will be a whole different scenario.

Just last year, online shopping accounted for 9.7% of all retail sales and this year it has grown to 14.2%. A growth like this in the sales industry is only bound to give birth to more and more competition. As Amazon plays its card now it is up to Target and Walmart to step up to the occasion to bring something to the table.

To make things interesting, Walmart then releases a statement on Twitter stating, "One-day free shipping...without a membership fee. Now THAT would be groundbreaking. Stay tuned." 

Does this mean Walmart is plotting something bigger? Will old-fashioned shopping will completely vanish? By the looks of it, the growth in the online shopping industry and the consumer's habits will take the grocery shopping out. 

Negative Slope: Unemployment

Analysis By: Zohair Mirza

Link: https://www.wsj.com/articles/u-s-hiring-jumps-in-april-unemployment-falls-to-3-6-11556886731

Summary:

The U.S. job market has been on a rise and has been getting stronger historically in the month of April. More than 200,000 jobs were added to the job market in April. The unemployment rate has fallen to 3.6%, the lowest level since December of 1969.

These job expansion reports have clearly topped some of the economists that are surveyed by The Wall Street Journal, who projected the unemployment rate to remain steady at 3.8%.

As we see a decrease in the unemployment rate, on the other hand, we see a spike in the wages in the private sectors. The best thing about this is that the average raises in wages exceed price increase.

However, it still isn't enough for us to be prepared for when the baby boomers are set for retirement.

In comparison to last year, this year the workforce has flourished and looks to be getting better.

Analysis:

With the job market continuing to repair itself, quite a few economists expect the workforce to keep growing and to keep getting better. In this society, we are working towards job security, more people are being listed as employed. Also, America is delivering a chance for people to live their lives with satisfaction. This kind of social-economic change is beneficial for society. This rift may help the economy help itself and become more stable.

Temporary Visas: Seasonal Workers

Analysis By: Zohair Mirza

Link: https://www.wsj.com/articles/trump-administration-backs-plan-for-more-h-2b-visas-irking-critics-of-immigrant-labor-rules-11557048600


Summary and Analysis:

The Trump Administration has worked with the Department of Homeland Security and the Labor Department to grant 30,000 seasonal workers with H-2B visas to fill in the lower skilled jobs. This program will allow several workers to work seasonal low paying jobs in the United States. Half of these H-2B visas went to agriculture and horticultural industries and several went to Building and constructing, forestry, logging, and laborers simply because they cannot find Americans to do such jobs with such low pay. Some people agree while others oppose this program.

The group NumbersUSA launched a cable-TV ad that promoted H-2B visas in the labor market outside of the United States to endorse this program. They have received millions of feedback for recruitment and the administration is under pressure to increase the 30,000 seasonal caps. Jared Kushner, the president’s adviser said that he is going to propose overhaul immigration where he will offer a large number of H-1B visas to highly skilled workers with few green cards available.

However, the Top White House officials are working to restrict legal immigration programs like H-1B, B1/B2, etc. who have a higher rate of overstaying and putting jobs for Americans at a lower demand. H-2B is basically a gateway for workers to enter the United States and seek immigration, plus putting immigration on control.

Not all companies put their settlements in, thus five companies failed to follow the requirements of the H-2B program and had paid thousands of dollars for compensations. All of this is to stop the discrimination against US workers where US workers claim that these H-2B workers are stealing their job market. Even today, questions over low-skilled workers and high-skilled workers are on the debate between Congress. Some claim low-skilled workers are in a greater need for the economy while others claim high-skilled workers are more needed to fill the skill set of the companies in the United States.

The external factors will play a huge role in the immediate job market. The social-political views of the American government and the American public will decide what is to be done regarding this issue. 

Business: Left Unattended

Analysis By: Zohair Mirza

Link: https://www.wsj.com/articles/what-happens-when-entrepreneurs-go-on-vacationand-a-crisis-hits-11556503620?mod=searchresults&page=1&pos=18


As an entrepreneur, the kinds of risks you may face with your absence can be devastating. These came close to devastation but lived to tell the story. Some fables for our business owners:


 Stuck On the Slopes
Michael Dweck, an offer recipient from "Shark Tank", takes a vacation in Vail, Colorado. Needless to say, things go wrong on the Back Bowls. In between, gaining and losing reception, he learns that their card has been suspended due to 'suspected fraud'. After the offer on the show, the undergarments company had an influx of orders which meant more supplies were needed. After facing rough weather and hiking for almost an hour in harsh conditions he reaches a safe spot to connect with his business.

His dedication to maintaining his brand and to not disappoint the customers lead him to be able to manage this crisis.

A Run Through the Jungle
Zachary Weiner, a marketing agency owner, went on a trip to the rainforests of Colombia to celebrate the 2nd anniversary of his company, Emerging Insider Communications. The company lands a big client and while he's on the trip he learns that his account manager has resigned effective immediately.  After staying in a lodge with no power and no way to contact his company he decides to take a risky trip to the city to gain contact. Slipping through the mud and drowning in floodwaters he manages to find a person who decides to take him to the closest city, Santa Marta. He checks into a hotel, fires up the computer and apologizes to the client. He dodged a bullet.

A lot of businesses that are out there are surviving because of the reputation that they have maintained and these businesses understand that this marketing built on trust and promise delivery is what brings them business and retains their existing clientele.

Putting Out an S.O.S.
Mehri Babayeva, CEO of a women's designer company, was enjoying a peaceful vacation in the Mediterranean sea and soon she learns that her production manager's father had passed away for which they had to leave immediately. To make things worse, there was an order of 180 items that were not being produced due to some problems. Trying to contact the company from the middle of the sea was impossible and to get back to the shore was impossible at that time. After contacting another captain from the radio and having him call the production manager was successful Mehri was able to authorize another production run. As soon as she reached the shore she was able to connect with the clients and compensate for their orders lateness.

These stories tell us how important brand management and business-customer relationship really is. How a lot of brands lose right where brand management comes in. Your self-branding as a CEO is also a factor as to whether your company with sink or swim (pun intended).

AT&T Selling Hulu Shares: Smart Move?

Analysis By: Zohair Mirza

Link:
https://www.wsj.com/articles/at-t-sells-hulu-stake-valuing-video-service-at-15-billion-11555370949?mod=searchresults&page=1&pos=11

Summary:

Hulu, an establishing multimedia service, is now owned by two major multimedia companies, has been trying to rival Netflix in the online streaming market.

Hulu is a company that is now worth around $15 billion and this growth has been exceptional jumping from $5.8 billion in recent years.

Until recently, this company's shares were divided into three companies: Disney, Comcast, and AT&T. Disney owns the majority by owning 60%, Comcast comes in second with 30%, AT&T at 9.5%, and others owning the remainder .5%. After AT&T cashes in on their stocks for a staggering $1.43 billion the 9.5% company shares are available to the market and are to be decided how Disney and Comcast will split them.

To put things into perspective, here are the numbers between Netflix and Hulu. Netflix's net worth as of today is a staggering $150 billion and has stacked up as much as 139 million people. On the other hand, Hulu is worth, as mentioned earlier, $15 billion and has managed more than 25 million subscribers.

Analysis:

A lot of multimedia companies are investing in Hulu and the results show that it has helped Hulu develop into a proper market holder. Ownership from Disney, Comcast can set Hulu up for success & even make Hulu a competitive platform next to Netflix.

AT&T selling their shares could be a mistake for the company, because in a prospecting company like Hulu the shares are most likely going to gain worth. Even though $1.43 billion is a quick turnaround, by staying in the game I believe that they could've gotten a whole lot more.

As a consumer, I've arrived at some hypotheses. Netflix has an edge over Hulu in the title variety, Netflix recommendations, and Netflix's productions that are appealing to the audiences. Although Hulu's popular content and iconic titles make Hulu a fan favorite platform for reminiscing but Netflix's global reach isn't suffering. If Hulu is consistent to attract consumers and delivering satisfaction, in the long run, I do see Hulu going head to head with the mighty Netflix.

Marketing:

On the marketing aspect, Netflix has become a household brand and is expanding to all corners of the world. Available in many countries, it really has become accessible to everyone.

This sort of brand management and customer satisfaction is achieved by an established team, exceptional company departments, analyzing your audiences' preferences, and market analysis. Hulu is really up against someone who's leading the way and are setting an example of global success.

Peugeot Expanding Their Horizons?

Photo by: Olena Sergienko

Peugeot, After Digesting GM’s Europe Business, Set Sights on Fiat Chrysler

Analysis by Zohair Mirza

A French automobile company, Peugeot, recently approached Fiat Chrysler Automobiles to be bought out. The process of combining these two established companies is projected to create a $45 billion industry. If this buyout is to happen, it will reposition  Peugeot's business in Europe and in the U.S.

So far, Fiat Chrysler has rejected Peugeot's offers.

If Fiat Chrysler decides to raise the price for their company it will be difficult for Peugeot to match it considering they overtook Opel recently in 2017. The purchase of Opel has left Peugeot financially pressed and in this time of an innovation-minded era, it will be difficult to place their resources on both ends.

If we are to see this deal go through, this could be the deal that can reignite Peugeot's market in the United States. Since Fiat Chrysler has a set market in both the U.S. and in Europe it will mean all of their business is now Peugeot's. Further branding and marketing set for these new cars will have to be immediately competitive and their pricing has to be mostly sales oriented.

It is at the moment a high-risk deal as it will give Peugeot financial setbacks but if correctly executed this could be a changing moment in Peugeot's history.