Thursday, December 06, 2018

That Connect Flight in Vancouver...

The stock market is down today and someone missed their connect flight in Vancouver.  Specifically, Huawei's CFO Meng Wanzhou.  You can read more about this in the New York Times:
https://www.nytimes.com/2018/12/06/technology/huawei-arrest-meng-wanzhou.html

That's quite an article in the NY Times.  Most people wouldn't think twice about making a connect flight.  True, you can miss a flight due to weather delays or mechanical issues.  But getting arrested between two flights in Canada?  Evidently, it can happen.  What's even more fascinating is that you wouldn't expect an arrest in an airport to rattle the stock market.  Apparently, that's exactly what happened.  Anyhow, it's quite a story and it's having a global impact.  It will be interesting to see what happens with the stock market in the upcoming days.

Monday, November 12, 2018

American Express Enters China

I came across this article on American Express and their entry into the Chinese market:

This should be a big move for American Express until you look at how consumers pay for goods and services in China.  For the Chinese, using a smartphone is a popular way to pay.  Yes, in China smartphones double as credit cards.  While this hasn't taken off in North America where credit cards are still popular, I see an opportunity for American Express.  All they'd have to do is launch a mobile/smartphone pay app in China.  Considering that American Express has a number of other strengths such as excellent customer service, maybe a few changes to their current offerings could bring them more success in the Chinese market? 

Monday, October 15, 2018

Sears, Iconic Retailer Files for Bankruptcy


This is actually kind of a big deal:
https://www.nytimes.com/2018/10/14/business/sears-bankruptcy-filing-chapter-11.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=2&pgtype=sectionfront

In its day, Sears was the Amazon of retail.  Actually, there's been quite a list of retail bankruptcies this year:
https://www.businessinsider.com/retail-bankruptcies-list-this-year-2018-4

Want to delve further into the impact of such bankruptcies?  The Wall Street Journal is an excellent resource.  There's an article in today's Journal which discusses the impact a Sears bankruptcy will have on rents at shopping malls:
http://predator.oldwestbury.edu:2048/login?url=https://search.proquest.com/docview/2119809159?accountid=29096

Hint: Sears has a lot of stores that take up a lot of space.  There could be opportunities for new space with tenants who are willing to higher rents.  On the other hand, it is a lot of space to fill.  Sometimes one business can have a ripple effect on other businesses and industries.  In this case, Amazon's had quite an impact on traditional retailers.  In addition, there's a ton of articles in the Wall Street Journal about retail shopping space and the future of shopping malls.  Until next time, catch me in the library.

Monday, September 17, 2018

The Divided Decade

It's been about a decade since the Great Recession.  Marketplace recently put together a series on what's happened since:
https://www.marketplace.org/topics/divideddecade

You can share your stories online.  I know what you're thinking... who wants to relive the worst economic downturn since the 1930s?  It was a rough time and something I have no desire to revisit.  Still, there were some teachable moments.  The Marketplace series delves into a number of aspects surrounding the financial crisis.  From "too big to fail" banks to an economist's diary, this series delves into many aspects surrounding the economic downturn.

In the meantime, classes have started on-campus and it is super busy.  Take care and be well.

Monday, August 20, 2018

Pepsi SodaStream Deal

Greetings,
Pepsi just announced that they are purchasing SodaStream in a deal valued at over $3 billion dollars.  I've been following SodaStream for a while.  It's an innovative company with a truly new take on some old technology.  According to Harvard Business Review, SodaStream spent years growing their business, using innovative marketing techniques, and more.  In many ways, this shows you what's possible when a company merges entrepreneurial and business acumen with a love of soda.  Plus, there's the desire to reduce plastic waste which is a pretty cool side benefit.  In any event, SodaStream saves a lot of plastic bottles every year and it's an interesting company to watch.  Until next time, catch me in the library.


Tuesday, July 03, 2018

Amazon and PillPack

Sometimes all you have to do is wait a few weeks... and Amazon changes the retail landscape again.  In this case, Amazon recently decided to purchase PillPack.  The PillPack deal is estimated at $1 billion dollars.  All in all, it's a pretty big change.  As the above Wall Street Journal articles mention, the Amazon/PillPack deal raises a lot of questions.  The pharmacy business is about more than dispensing and delivering medication.  Who would've thought?  At least that's a perspective Walgreen's CEO Stefano Pessina offered in Forbes.  Meanwhile, you have the Amazon and PillPack deal which quickly wiped out $15 billion dollars in value for CVS, Rite Aid, and Walgreens.

In addition to the $15 billion dollar figure, Gizmodo highlights potential data and privacy issues surrounding the deal.  Past a certain point, who knows how this will sugar out?  Retail pharmacies are big business and so is Amazon.  That said, one theme that keeps coming up is the disruptive nature of tech companies and e-commerce.