Blockchain technology futuristic hud background with world map and blockchain peer to peer network. Global cryptocurrency blockchain business banner concept.
Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

You’ve got to know when to fold ‘em

By Richard Arneson

Even the New England Patriots have to send out the punting unit from time to time. If Belichick is facing 4th and 25 and the ball is on the Pats’ 10-yard line, they’re punting (unless, of course, desperation necessitates it). But desperation and Amazon don’t really go together. The clock isn’t ticking down on them any time soon. They’re not trailing in the game. So, it may come as a shock to learn that they’re punting on most of their business operations in China. It’s especially surprising considering Amazon is known for fighting through short-term losses to enjoy long-term gains. But, when you’re facing juggernauts Alibaba and JD.com, another Chinese e-commerce behemoth, in their own backyard, apparently Amazon has decided it’s 4th and long. “Let’s punt.”

It will all happen on July 18th, after which consumers logging into Amazon.cn will only be offered products from its global store. It will mark the end of a fifteen (15) year venture in China, which began in 2004 after Amazon bought an online bookstore there for $75 million.

Over the years, Amazon has invested in data centers and warehouses in China, and even programs designed to educate Chinese sellers on how to get their goods into the hands of Amazon customers. And, two (2) years ago they launched Amazon Prime in China to try and lure Chinese consumers into buying more Western products. They offered free shipping, to boot. But, Alibaba launched multiple counter attacks, including offering deeply discounted products manufactured outside China. You could buy American-grown produce, clothing manufactured in England, beauty care products from Australia, et al. It worked. Amazon was never able to garner more than a one percent (1%) market share there.

They’re not entirely washing their hands of China

Amazon hasn’t totally turned its back on the Chinese marketplace, however. Instead, they’ll now focus their efforts there on offering consumer products manufactured outside China’s borders. For instance, they’ll continue selling AWS (Amazon Web Services) and Kindle e-books. And, they’ll maintain their cross-border operations, which help ship Chinese goods to buyers abroad.

Next up for Amazon?

Amazon launched their website in India in 2013, and since then they’ve pumped billions of dollars into that market over the past six (6) years. They’ve purchased over fifty (50) warehouses in India, and, now that China has moved off Amazon’s radar—at least partly—they’re ready to shift focus and funds toward a market in which they believe they’ll have a better chance of competing.

Guess who else is ramping up their investments in India? Yep, Alibaba and JD.com. It’s 1st and ten—let the game begin.

Questions about Digital Transformation, new products on the horizon, or, better still, how your company can get the most from technology? Talk to the experts

If you’d like to learn about how GDT’s design engineers and solutions architects turn traditional, legacy infrastructures into innovative, agile machines that make customers more competitive, help them bring applications to market faster, and deliver a superior customer experience, contact them at SolutionsArchitects@gdt.com or at Engineering@gdt.com. They’d love to hear from you.

Read more about digital transformation, new technologies, market trends, blockchain, and more, here:

Whatever happened to Google Fiber?

Monetize space? Sure, if you’ve got a launch pad and a few thousand satellites in your garage

FTC cracks down on robocalls, but is apparently poor at collection calls

How Machine Learning is making you smarter on game day

Nvidia drops big chunk of change to round out its data center strategy

Intelligence limited only by your architectural imagination

Data growth— how to store all those 1’s and 0’s

Storage—software style

Thank God I’m a country boy…as long as I get broadband

A road less traveled…than you’d think

The four (4) horsemen of HCI

Who doesn’t want to Modernize?

Workshops uncover insights into the state of IT and Digital Transformation

What is Digital Transformation?

The only thing we have to fear is…definitely not automation

Without application performance monitoring, your IoT goals may be MIA

When implementing a new technology, don’t forget this word

Automation and Autonomics—the difference is more than just a few letters

Is Blockchain a lie detector for the digital age?

If you fall victim to it, you won’t end up marking it as “like”

They were discovered on Google Play, but this is no game

Blockchain; it’s more than just Bitcoin

When being disruptive is a good thing

]]>

Subscribe to our Newsletter

WordPress Image Lightbox