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Authors:
Jeremy Ghez (HEC Paris)
Published in:
2017
Version:
14-Sep-2017
Revision date:
11-Oct-2017
Length:
8 pages
Data source:
Published sources

Abstract

Jeff Bezos is particularly concerned with the populist wave hitting the Western world and the growing skepticism towards political and economic openness he observes. If this is indicative of a globalization slowdown, what did that mean for a company like Amazon which relied on global markets to prosper? Global trade has slowed down. In early 2015, world trade plateaued, as global organizations such as the IMF and the WTO expressed concerns about increasing protectionist measures across the globe. In addition, the wariness of Western public opinions who seemed increasingly preoccupied with the risk of demotion the sense of loss of social status and influence over political processes made the rise of populists all the more so easier. Amazon already tried to tackle the issue of income inequality. But others, and its Chinese rival Alibaba, seemed to go further, by signing a free-trade agreement with Malaysia, among other efforts to make sure free trade remained the norm. It seemed that there were very few low hanging fruits remaining – but that there was no shortage of creative thinking either though on the part of Amazon’s rivals. What was the next big idea – the new product or service, the new technological application, the new source of supply, and/or the new company organization – that would allow Amazon to adapt to this new global political reality of discontent and characterized by fear and rejection of yesterday’s norms. What would represent a decisive and durable advantage for his firm?

Topics

Amazon; Strategy; Geopolitics; Creative Destruction; Globalization; Globalization and increasing economic insecurity; Globalization strategies; Globalization/global expansion; Electronic world trade platform; Alibaba; Protectionism; Populism; Political instability; World trade; Deglobalization

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