Author Archives: reidcurtis

Crash and War Anger

Crash and War Anger

All of us love validation – especially when it comes from an admired source.

That’s the way I feel after reading the NYT Review by Fareed Zakaria – possibly my most admired journalist

The review is of a book called Crash, by an eminent scholar writing about the consequences of the crash of 2008. The review is below.

It validates my deep belief that the seeds of Trump’s victory go back to the “crash” of 2008. It was a moment of major negative “reset” for far too many Americans. Their savings, or their employability, or their home values, or their prospects for credit changed so negatively that it created an emergent body politic. The new body politic was characterized by a primary sentiment: seething anger. More importantly, it was characterized by a call to action: “throw the bums out!”.

The deep irony here is that democracy handed the angry a “throw the bums out” choice that many didn’t want – Barack Obama.

But their anger at inside-the-beltway Republicans, and George W. Bush, was so strong that – inside the ballot box – they pulled the lever for Obama.

When Donald Trump had the courage to viciously criticize the Republican establishment, and especially Bush, he was speaking directly to this new body politic. If their sentiment was resentment, they found their gladiator in Trump.

My only beef with the book and the review is that they do not go back far enough.

I believe the seeds of Trump’s victory go back to 9/11. It was that fateful day that itself created a new body politic, whose primary sentiment was “We are under attack and we must fight back.”

George W. Bush was responding to that scary, new sentiment when he announced not just one, but two new wars. History will record that the Iraq War – which cost trillions – was a major mistake. History will be somewhat more kind about the war in Afghanistan, which led the nation into a massively expensive 15+ year engagement of limited success and many, many unintended consequences.

So my point is that 9/11 reigned holy hell on the nation – because of the new body politic of “we are under attack and we must fight back.” – by pushing a very weak leader George W. Bush – to start two wars that almost immediately looked incompetent and wrong.

The 2008 crash was the final straw. Two stupid wars and a major economic reset were enough to push most Americans over the edge to a seething anger and a “throw the bums out” call to action.

It took the decade after to weave a tapestry of cause and effect, supported by right wing media. Never mind that most of the tapestry was a fabrication. Never mind that he was a serial liar. It was soothing to have a gladiator (Trump) that spoke the truth about the subjects that really mattered: “those folks in Washington don’t know what they are doing and they need to go”; “you are being screwed by the economic resets” and “the war in Iraq was a major mistake”.“

There is very little question in my mind that Donald Trump will go down in history as our worst president. He will be remembered by his failures, his indecency and his lack of integrity. He will be remembered for his failures abroad, where he embarrasses us and plays the fool, and his failures at home, where he depletes the treasury and breaks the back of the Affordable Care Act. Everywhere he goes, he does what is bad, and undoes decades of progress In defining what is good,, e.g. environmental regulation. His indecency and his lack of integrity will leave lasting scars on the office, but hopefully schools and parents will now have an example of what not to be, how not to act.

How did the nation get to this horrible outcome? We will only have perspective on this decades from now, but the “second draft of history”, to me, traces it all back to 9/11 and it’s two awful wars. The cruel irony was that after eight Bush years of misguided foreign adventurism, the American economy collapsed. It was the straw that broke the camels back, causing all of us to say “we are mad as hell and we need to throw the bums out!”

So the math, looking back thirty years form now, might well be:

Afghan war + Iraq war + economic crash = Obama
(Obama was the backlash. We threw the bums out for him, and thank God he was as level headed and as competent and decent as he was)

Economic reset for most Americans + unresolved racist and nationalistic impulses + Comey + Russia = Trump
(Trump was the backlash to Obama, supported by all events above)
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CRASH

CREDIT: https://www.nytimes.com/2018/08/10/books/review/adam-tooze-crashed.html?rref=collection%2Fsectioncollection%2Fbook-review&action=click&contentCollection=review&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront
NONFICTION
Looking Back at the Economic Crash of 2008

By Fareed Zakaria

Aug. 10, 2018

How a Decade of Financial Crises Changed the World

By Adam Tooze
706 pp. Viking. $35.

Steve Bannon can date the start of the Trump “revolution.” When I interviewed him for CNN in May, in Rome, he explained that the origins of Trump’s victory could be found 10 years ago, in the financial crisis of 2008. “The implosion of those world capital markets has never really been sorted out,” he told me. “The fuse that was lit then that eventually brought the Trump revolution is the same thing that’s happened here in Italy.” (Italy had just held elections in which populist forces had won 50 percent of the vote.) Adam Tooze would likely agree. An economic historian at Columbia University, he has written a detailed account of the financial shocks and their aftereffects, which, his subtitle asserts, “changed the world.”

If journalism is the first rough draft of history, Tooze’s book is the second draft. A distinguished scholar with a deep grasp of financial markets, Tooze knows that it is a challenge to gain perspective on events when they have not yet played out. He points out that a 10-year-old history of the crash of 1929 would have been written in 1939, when most of its consequences were ongoing and unresolved. But still he has persisted and produced an intelligent explanation of the mechanisms that produced the crisis and the response to it. We continue to live with the consequences of both today.

As is often the case with financial crashes, markets and experts alike turned out to have been focused on the wrong things, blind to the true problem that was metastasizing. By 2007, many were warning about a dangerous fragility in the system. But they worried about America’s gargantuan government deficits and debt — which had exploded as a result of the Bush administration’s tax cuts and increased spending after 9/11. It was an understandable focus. The previous decade had been littered with collapses when a country borrowed too much and its creditors finally lost faith in it — from Mexico in 1994 to Thailand, Malaysia and South Korea in 1997 to Russia in 1998. In particular, many fretted about the identity of America’s chief foreign creditor — the government of China. Yet it was not a Chinese sell-off of American debt that triggered the crash, but rather, as Tooze writes, a problem “fully native to Western capitalism — a meltdown on Wall Street driven by toxic securitized subprime mortgages.”

Tooze calls it a problem in “Western capitalism” intentionally. It was not just an American problem. When it began, many saw it as such and dumped the blame on Washington. In September 2008, as Wall Street burned, the German finance minister Peer Steinbruck explained that the collapse was centered in the United States because of America’s “simplistic” and “dangerous” laissez-faire approach. Italy’s finance minister assured the world that its banking system was stable because “it did not speak English.”

In fact this was nonsense. One of the great strengths of Tooze’s book is to demonstrate the deeply intertwined nature of the European and American financial systems. In 2006, European banks generated a third of America’s riskiest privately issued mortgage-backed securities. By 2007, two-thirds of commercial paper issued was sponsored by a European financial entity. The enormous expansion of the global financial system had largely been a trans-Atlantic project, with European banks jumping in as eagerly and greedily to find new sources of profit as American banks. European regulators were as blind to the mounting problems as their American counterparts, which led to problems on a similar scale. “Between 2001 and 2006,” Tooze writes, “Greece, Finland, Sweden, Belgium, Denmark, the U.K., France, Ireland and Spain all experienced real estate booms more severe than those that energized the United States.”

But while the crisis may have been caused in both America and Europe, it was solved largely by Washington. Partly, this reflected the post-Cold War financial system, in which the dollar had become the hyperdominant global currency and, as a result, the Federal Reserve had truly become the world’s central bank. But Tooze also convincingly shows that the European Central Bank mismanaged things from the start. The Fed acted aggressively and also in highly ingenious ways, becoming a guarantor of last resort to the battered balance sheets of American but also European banks. About half the liquidity support the Fed provided during the crisis went to European banks, Tooze observes.

Before the rescue and even in its early stages, the global economy was falling into a bottomless abyss. In the first months after the panic on Wall Street, world trade and industrial production fell at least as fast as they did during the first months of the Great Depression. Global capital flows declined by a staggering 90 percent. The Federal Reserve, with some assistance from other central banks, arrested this decline. The Obama fiscal stimulus also helped to break the fall. Tooze points out that almost all serious analyses of the stimulus conclude that it played a significant positive role. In fact, most experts believe it ended much too soon. He also points out that large parts of the so-called Obama stimulus were the result of automatic government spending, like unemployment insurance, that would have happened no matter who was president. And finally, he notes that China, with its own gigantic stimulus, created an oasis of growth in an otherwise stagnant global economy.

The rescue worked better than almost anyone imagined. It is worth recalling that none of the dangers confidently prophesied by legions of critics took place. There was no run on the dollar or American treasuries, no hyperinflation, no double-dip recession, no China crash. American banks stabilized and in fact prospered, households began saving again, growth returned slowly but surely. The governing elite did not anticipate the crisis — as few elites have over hundreds of years of capitalism. But once it happened, many of them — particularly in America — acted quickly and intelligently, and as a result another Great Depression was averted. The system worked, as Daniel Drezner notes in his own book of that title.

But therein lies the unique feature of the crash of 2008. Unlike that of 1929, it was not followed by a Great Depression. It was not so much the crisis as the rescue and its economic, political and social consequences that mattered most. On the left, the entire episode discredited the market-friendly policies of Tony Blair, Bill Clinton and Gerhard Schroeder, disheartening the center-left and emboldening those who want more government intervention in the economy in all kinds of ways. On the right, it became a rallying cry against bailouts and the Fed, buoying an imaginary free-market alternative to government intervention. Unlike in the 1930s, when the libertarian strategy was tried and only deepened the Depression, in the last 10 years it has been possible for the right to argue against the bailouts, secure in the knowledge that their proposed policies will never actually be implemented.

Bannon is right. The crash brought together many forces that were around anyway — stagnant wages, widening inequality, anger about immigration and, above all, a deep distrust of elites and government — and supercharged them. The result has been a wave of nationalism, protectionism and populism in the West today. A confirmation of this can be found in the one major Western country that did not have a financial crisis and has little populism in its wake — Canada.

The facts remain: No government handled the crisis better than that of the United States, which acted in a surprisingly bipartisan fashion in late 2008 and almost seamlessly coordinated policy between the outgoing Bush and incoming Obama administrations. And yet, the backlash to the bailouts has produced the most consequential result in the United States.
Tooze notes in his concluding chapter that experts are considering the new vulnerabilities of a global economy with many new participants, especially the behemoth in Beijing. But instead of a challenge from an emerging China that began its rise outside the economic and political system, we are confronting a quite different problem — an erratic, unpredictable United States led by a president who seems inclined to redo or even scrap the basic architecture of the system that America has painstakingly built since 1945. How will the world handle this unexpected development? What will be its outcome? This is the current crisis that we will live through and that historians will soon analyze.

Fareed Zakaria is a CNN anchor, a Washington Post columnist and the author of “The Post American World.”

Climate Change Language

We Need A Better Language for Climate Change – that Acts as a Call to Action

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Below is as essay that makes the case for a new six-box classification system for global climate change – two columns and three rows. The core idea here is to move climate change out of a subject for the editorial page and into a subject for daily new – much like how storms, earthquakes and epidemics are covered. We want a language that serves as a “call-to-action”.

The news would inform the world about climate-change related occurrences that have impacts that are “major”, “disaster”, or “global disaster”, and that are either “incidents” (one-time) or “recurring”.

I worked this out with Karen . I am the scribe. Obviously, this is DRAFT 1.

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Climate Change Language

CREDIT: Karen Flanders-Reid
CREDIT: https://www.nytimes.com/2018/08/08/opinion/environment/california-wildfires-trump-zinke-climate-change.html

Karen and I read today’s NYT article about California wildfires, and found ourselves musing – is the language of climate change right? Why is a “wildfire” just an isolated incident? Why isn’t it part of a larger wildfire classification system (“BREAKING NEWS: THE CALIFORNIA WILDFIRE HAS JUST BEEN RECLASSIFIED AS CATEGORY V.”?

We went on to ask: if climate change is the critical issue of our day, why Why isn’t the wildfire in California an climate change incident – part of a larger climate change classification system?

Why do the NYT editorial writers have to scream – everything is related to climate change!!!! After all, news breaks when a Hurricane is re-classified: “BREAKING NEWS: THE TROPICAL STORM OVER CUBA HAS JUST BEEN RE-CLASSIFIED BY THE WEATHER SERVICE AS A HURRICANE.”

Why doesn’t climate change have its own global classification system? How do we move from the editorial opinion desk to the news desk? How do we move from “The science is being ignored.” To “BREAKING NEWS: THE WILDFIRES IN CALIFORNIA HAVE JUST BEEN RECLASSIFIED BY THE WEATHER SERVICE FROM A CLIMATE-RELATED INCIDENT (CRI) TO A CLIMATE-RELATED DISASTER (CRD).”

EXAMPLES OF POWERFUL GLOBAL CLASSIFICATION SYSTEMS

To identify a powerful classification system, and the new language it implies, it first would be useful to identify the other global classification systems that exist – especially those with imply a call to action.

There are at least four:

Storms; Classified by the World Meteorological Organization (WMO), using the Saffir–Simpson scale:

Tropical Depression
Tropical Storm
Hurricane/Cyclone Categories 1-5

Source: https://en.wikipedia.org/wiki/Maximum_sustained_wind

Earthquakes: Classified by the US Geological Service, using the Richter Scale:
Moderate (above 8)
Strong (7-7.9)
Major (6-6.9)
Great (5-5.9)

Infectious Disease; Classified by the global centers for disease control, the classes are:

Outbreak (more incident than expected)
Epidemic (spreads rapidly to many people)
Pandemic (spreads rapidly to many people globally)

Source: https://www.webmd.com/cold-and-flu/what-are-epidemics-pandemics-outbreaks#1

A NEW GLOBAL CLASSIFICATION SYSTEM FOR CLIMATE CHANGE

To Begin

We recommend s simple structure, with easily understood terms, that evolves over time:

Starts with a few terms, and adds terms over time.
Begins classifying major occurrences only, and evolves to classify most occurrences.
Begins classifying evidence-based occurrences only (where science is conclusive that the occurrence is climate-change-related) and evolves as science becomes increasingly conclusive.

Initial Terms

“Occurrence” – a natural phenomena that occurs somewhere

“Climate-Change-Related” (CR) – a shorthand for saying that the preponderance of science indicates that a given occurrence is a contributor to or the result of climate change.

“Incident” (I) – an episodic occurrence (with a beginning, middle, and end)
“Recurring” (R) – an on-going occurrence (no end in sight)

“Major” (M) – an occurrence with sufficient size to merit being classified.
“Disaster” (D) – an occurrence, with major impacts
“Global Disaster” (G) – an occurrence with major global impacts

Initial Classification System:

Climate-related Occurrences shall be identified.

Once identified, they shall be classified in one of six classes:

Either “incidents” or “recurring”.
Either “major”, “disaster”, or “global disaster”

“Climate-Change-Related Event” (CRE) – any occurrence that is deemed to be a contributor to climate-change.

“Climate-Change-Related Outcome” (CRO) – any occurrence that is deemed to be the result of to climate-change.

All major climate-change-related occurrences would be classified as follows:

CR Incident (CRE-I): An episodic event, with a beginning, a middle, and an end.
CR Disaster (CRE-D): An episodic event, with global impacts

The Weather Service would be tasked with implementation, and aligning with the World Meteorological Organization (WMO) and other agencies around the world.

See Ireland in a Week

Ireland

A “See Ireland in a week” Strategy
20180721

Fly into Dublin
Spend two nights in Dublin
Spend most of the time south of River Liffey.
See Trinity College, Temple Bar area at night, Grafton Street area before dinner
See Book of Kells while in Trinity College
Get to Grand Canal Square off Pearse Street, and have lunch or dinner on the Grand Canal. Rent a bike and use the bike path that goes to Baggot Street and beyond on the canal.
Leave plenty of time for St Stephen’s Green (two hours?)
Eat dinner at The Winding Stair – on the River Liffey.
Spend lots of time on the west coast (one day?)
Spend 2-3 hours in Galway (Ireland top 15 city)
Get north of Galway (if possible) to explore County Galway and County Mayo, especially the village of Westport (Ireland top 15)
Get south of Galway to explore County Clare, driving on the coast road wherever possible (beware: will be slow but well worth it).
Stop for the night and dinner at Ballyvaughn or Doolin. Ballyvaughn is mid-way and has a few good restaurants.
Stop at the Cliffs of Moher, the village of Doolin (Ireland Top 15 and 5 miles from Cliffs)
End the day at Ennis? (Ireland Top 15 and 25 miles from Cliffs).
Spend a day visiting southwest (two days?)
Get to Killarney, and possibly stay there (note: 55 miles from Cork on road from Dingle
In Killarney, visit Killarney National park
From Killarney, visit Dingle and Dingle Peninsula
From Killarney, visit Ring of Kerry.
Spend lots of time in and around Cork. (1-2 days?)
Visit West Cork small towns on coast
Day trip to Glangarriff and Rosscarbery (Ireland top 15)
Day trip to Rosscarbery (Ireland top 15)
Visit Kinsale (harbor town in West Cork)
Visit East Cork small towns on Coast
Day trip to Cobh (Ireland top 15)
Day trip to Shanagarry and Ballycotton (superb attractions like a cooking school with restaurant and a pottery studio and a major cliff walk).
Day trip to Youghtal
Visit (or Stay?) at Castlemartyr Resort (five stars!)

On return to Dublin, perhaps stay in or have lunch in
Lismore (Ireland top 15, 35 miles from Cork)
Kilkenny (Ireland top 15 – 96 miles from Cork and 84 miles from Dublin airport)

Here’s a sensible itinerary:

Arrive Dublin Mon July 23
Arrive Galway Wed Jul 25 ( 130 mile drive)
Arrive Ennis Thu Jul 27 (44 mile drive)
(after cliffs and lunch in Doolin, next to Cliffs)
(south of Galway in County Clare)
Arrive Killarney Fri Jul 28 (95 mile drive)
Arrive Cork Sat Jul 29 (80 mile drive)
(after driving Ring of Kerry and also trip to Dingle)

Arrive Kilkenny Fri Aug 3
Arrive Dublin Sat Aug 4
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Ireland Tips – Dublin
20180722

There are two sections of Dublin: south and north of the River Liffey.

The big street that crosses the river and is the center of town is “O’Connell Street”.

South, there is a big shopping area called Grafton Street, which connects to O’Connell. Around Grafton are little cute streets with restaurants, shops etc.

Nassau Street is a great street – a continuation of Grafton. A good meeting point is Grafton and Nassau.

At the top of of Grafton Street, is St Stephens Green, which is one of the best parks in the world. There are flowers, and trails, and ponds, and ruins. Great place.

Trinity College, with is beautiful and a great walking stop, is between Pearse and Nassau, on the Southside.

If you walk or cab down Pearse, you will get to a wonderful area centered on Grand Canal Square. There are great views there, down the harbor, restaurants, shops, supermarkets, etc.

Importantly, a wonderful bike path runs along the canal to the south. Its a bit difficult to find, since it is hidden at the canal locks. In fact, to get to it, you need to bike down a tiny street to the west of the canal near the Trinity College annex. This will take you to Baggot Street and beyond.

Coming back to the river and the centre, if you head west from O’Connelll street, on the southside, you will hit the Temple Bar area. Its a fun place at night, if you can put up with some drunks and some noise, all harmless. Temple Bar is a must see, but is way too touristy for my taste.
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Ireland Tips – Outside of Dublin
20180721

Orientation:

Assuming a clock with North at 12, Dublin is at 3, Kilkenny 4, Cork 6, Killarney (and Kilarney National Park 7 (close to center of clock), Limerick 8 (close to Kilkenny?), Galway 9, Sligo 11.

You can cross Ireland from Dublin to Galway in a little over two hours.

Galway to Ennis is about an hour, but taking the coast road (a must) along the coast of County Clare will easily take half a day.

Ennis to Killarney is about two hours, and Killarney to Cork is about two hours.

So these are short distances, especially when you are on a big road (where speed limits are 100-120 Km/hour. Small roads are intimidating because of busses and traffic jams. But they are by far the most interesting.

Top Regions

Southwest
(Killarney, Dingle Peninsula, Ring of Kerry, over to Cork on the East)
West Coast
(County Galway to North, Clare in Middle with Cliffs of Moher and Bunratty Castle, County Kerry to South, Barley Harbour, Carrick-on-Shannon)
Dublin.
Southeast
(Kilkenny in the North, over to Cork to the west, and including Castelmartyr, Yougal, Cobh, Waterford)
East Coast/Midlands.

Top Counties


COUNTY CLARE JCR: Focus Here.

County Clare in the Republic of Ireland is steeped in history, and it offers beautiful seascapes, landscapes, lakes, cliffs, caves, and music. Highlights include The Burren (an ancient, perfectly preserved landscape), the Cliffs of Moher (700 foot high cliffs facing the wild Atlantic), and Bunratty Castle and Folk Park (an impressive castle dating from the early Middle Ages).


COUNTY CORK JCR: Focus Here.
County Cork is the largest county in Ireland and Cork City is the second-largest city in the Republic. A unique and lively second capital, the distinctive people are as much an attraction as the place itself. JCR: Note village of Cob is here east of the Cork Harbor and the village of Kinsale is here west of the harbor.

COUNTY DUBLIN JCR: Focus Here.

Dublin is the capital of the Republic of Ireland and is divided by the River Liffey. The Royal Canal and the Grand Canal provide connections between the port area and the northern and southern branches of the River Shannon.

COUNTY GALWAY JCR: Focus Here.

Galway City is known as the City of Tribes after 14 merchant families who controlled and managed the city in medieval times and is situated along the River Corrib at the mouth of Galway Bay. Note that the Wild Atlantic Way starts here and goes North to Sligo.

COUNTY KERRY JCR: Focus Here.

The locals know County Kerry as The Kingdom, a reference to the contrasts you’ll see in its astounding scenery, which suggest Ireland in miniature. The climate in Kerry is more unique than other places in Ireland, thanks to the warm waters of the Gulf Stream, and it’s actually possible to swim here year round.
Note Dingle, Killarney and Killarney National Park are near/

COUNTY KILKENNY JCR: Focus Here.

Kilkenny is a county looked on enviously by other counties and not only because of the county’s incredible track record in the ancient Irish game of hurling. Kilkenny is a county filled with enchantment and delight. From the spectacular scenery of the Nore and Barrow river valleys to the cultured beauty of Kilkenny City, the county provides the perfect setting for whatever holiday you desire.

COUNTY WICKLOW JCR: Maybe, probably not

County Wicklow is often referred to as the Garden of Ireland, due to its breathtaking scenery and located just south of Dublin it makes for a wonderful day trip or overnight stay away from the ‘big smoke.’ Note the town of Bray is right on the coast. Note also Wicklow Mountains National Park

COUNTY MEATH JCR: Probably not

Just northwest of Dublin, County Meath has traditionally been known as the Royal County, being the seat of the ancient Kings of Ireland at Tara. In the Boyne Valley of County Meath are some of Ireland’s most important archaeological monuments, including the Megalithic Passage Tombs of Newgrange, Knowth, Dowth, Fourknocks, Loughcrew, and Tara.

COUNTY OFFALY JCR: Probably not

The heart of the Midlands, County Offaly offers bogs, meadowlands, and undiscovered pastures. Clonmacnoise, located at Shannonbridge on the banks of the River Shannon, is one of the most famous monastic sites.

COUNTY DONEGAL – – – JCR: too far north …..???
Far to the north ….. With its sandy beaches, unspoiled boglands and friendly communities, County Donegal is a leading destination for many travelers. One of the county treasures is Glenveagh National Park, the only official national park anywhere in the Province of Ulster. The park is a huge nature reserve with spectacular scenery of mountains, raised boglands, lakes, and woodlands. At its heart is Glenveagh Castle, a beautiful late Victorian “folly” that was originally built as a summer residence.

Top 15 Towns

Westport, County Mayo, Photo: Courtesy of luca fabbian – fotolia.com JCR: North of Galway. Cute. Could be northernmost leg of trip, returning through county Galway?
Cities in Ireland: Cobh, County Cork, Photo: Courtesy of M.V. Photography – fotolia.com JCR: this is an important day trip to the coast from where we are staying?
Glengarriff, County Cork, JCR: this west of Cork on the coast.
Rosscarbery, County Cork, JCR: this west of Cork on the coast.
Ireland Cities: Doolin, County Clare, Right next to the Cliffs of Moher. Tiny.
Ennis, County Clare, JCR: Between Limerick and Galway off A18. This is the first major stop to the south of Cliffs of Moher. Nice town, full of history. Old Ground Hotel and Restaurant here.
Dublin, Major Stop
Galway, County Galway Major Stop
Kilkenny, County Kilkenny, JCR: Between Cork and DublinLunch stop? 96 miles from Cork and 84 miles from Dublin airport.
Killarney, County Kerry, JCR: Wonderful place. Major stop.
Lismore, County Waterford, JCR: this is an important day trip from where we are staying? 35 miles back toward Dublin in Waterford County.
Beal an Mhuirthead, County Mayo, JCR: North of Galway. On coast and too far out of the way?????
Blackrock, County Louth, JCR too far north? North of Dublin
Carrick-on-Shannon, County Leitrim, Photo: Carrick-on-Shannon, County Leitrim JCR too far north? On the road to Sligo

Trip Advisor Top 15 Sites

Cliffs of Moher Liscannor

Kilmainham Gaol Dublin

St. Stephen’s Green Dublin

Trinity College Dublin Dublin

The Book of Kells and the Old Library Exhibition Dublin

Guinness Storehouse Dublin

Temple Bar Dublin

Killarney Falconry Killarney

Eagles Flying Ballymote

Slea Head Drive Dingle Peninsula

Mayfield Birds of Prey Kilmsacthomas

Kilkee Cliff Walk Kills

More Info

Blueberry Hill Farm Sneem

Ballykeefe Distillery Cuffesgrange

Slieve League Carrick

Wild Atlantic Way This is a massive coastline. Deserves lots of time and stops…..especially in County Clare, but really all the way to Cork. Begins in Sligo to the north? Runs through Galway?

Joyce Country Sheepdogs Shanafaraghaun

Scattery Island Childish

Terra Nova Fairy Garden Limerick

Arigna Mining Experience Roscommon

Killarney National Park Killarney

The Art House Dunfanaghy

Bike Park Ireland Roscrea

Carrowholly Stables & Trekking Centre Westport

Experience Gaelic Games Dublin

Michael Davitt Museum Oxford

The Irish Workhouse Centre Protean

EPIC The Irish Emigration Museum Dublin

Richmond Barracks Dublin

Atlantic Drive on Achill Island Westport

Tips Received

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Dublin:
Trinity College, including the Old Library and the Book of Kells
Dublin Castle
Christ Church Cathedral
St. Patrick’s Cathedral
Kilmainham Gaol (Jail)
Kevin & Howlin Ltd. – Handwoven tweed shop (amazing woolens, best shop by far with super high quality – 31 Nassau Street, Dublin)

Southeast:
Kilkenny – don’t miss the castle and Murphy’s ice cream

County Clare:
Cliffs of Mother
The Burren (The Burren perfumery)
Drumcreehy House – B&B owned and operated by my third cousin – located in charming town of Ballyvaughan www.drumcreehyhouse.com (awesome experience, not just because they are relatives!)

Connemara Peninsula:
Kylemore Abbey
Roundstone – quaint town

Bunratty Castle
The Rock of Cashel
====================
History of Ireland

A BRIEF HISTORY OF IRELAND

CREDIT: http://www.livinginireland.ie/en/culture_society/a_brief_history_of_ireland/
Early Irish History
Humans settled Ireland at a relatively late stage in European terms – about 10,000 years ago. Around 4000 BC, farmers arrived in Ireland. Around 300BC, Iron Age warriors known as the Celts came to Ireland from mainland Europe – with their language. Irish (or Gaeilge) stems from Celtic language.

Early Christian and Viking Ireland
Saint Patrick and other missionaries brought Christianity in the early to mid-5th century, replacing the indigenous pagan religion by the year 600 AD.

At the end of the 8th century, Vikings, from Scandinavia began to invade and then gradually settle into and mix with Irish society. The Vikings founded, Dublin, Ireland’s capital city in 988. Following the defeat of the Vikings by Brian Boru, the High King of Ireland, at Clontarf in 1014, Viking influence faded.

The Norman Era
Normans arrived in the twelfth century with their walled towns, castles and churches. They also increased agriculture and commerce in Ireland.

Henry VIII, “Plantations” – 1534
King Henry VIII declared himself head of the Church in England in 1534. He also ensured that the Irish Parliament declared him King of Ireland in 1541. Enforcing his will, to change England and Ireland from Catholic to Protestant (he named himself the head of the Anglican church), the King adopted a “plantation” policy. Under this policy, Protestants would get massive land grants, displacing Catholic land-holders. Thousands of English and Scottish Protestant settlers arrived during his reign. Catholics lost their land.

From this period on, sectarian conflict became a common theme in Irish history. It is a history of England depriving catholics of their land, and then their rights.

Bloody 17th Century and “Penal Laws”
The 17th century was a bloody one in Ireland. England imposed the “Penal laws” on Ireland. These laws took away rights from Catholics. They took away the right, for example, to rent or own land above a certain value. They outlawed Catholic clergy,. They forbid Catholic higher education, entry into the professions. During the 18th century, Penal laws eased but by then resentment and hate dominated the country.

Defeated During Rebellion – 1798
In 1782, Henry Grattan (a Protestant) successfully agitated for a more favourable trading relationship with England and for greater legislative independence for the Parliament of Ireland. Inspired by the French Revolution, in 1791 an organisation called the United Irishmen was formed with the ideal of bringing Irish people of all religions together to reform and reduce Britain’s power in Ireland. Its leader was a young Dublin Protestant called Theobald Wolfe Tone. The United Irishmen were the inspiration for the armed rebellion of 1798. Despite attempts at help from the French the rebellion failed and in 1801 the Act of Union was passed uniting Ireland politically with Britain.

Catholic Emancipation and Daniel O’Connell – 1829
In 1829 one of Ireland’s greatest leaders Daniel O’Connell, known as ‘the great liberator’ was central in getting the Act of Catholic Emancipation passed in the parliament in London. He succeeded in getting the total ban on voting by Catholics lifted and they could now also become Members of the Parliament in London.
After this success O’Connell aimed to cancel the Act of Union and re-establish an Irish parliament. However, this was a much bigger task and O’Connell’s approach of non-violence was not supported by all. Such political issues were overshadowed however by the worst disaster and tragedy in Irish history – the great famine.

The Great Famine – 1845
A potato blight destroyed the crops of 1845, 1846, and 1847, disaster followed. During this decade, Ireland’s population plummeted from 8 to 4 million. Two million died. Others left – seeking refuge in America. were the staple food of a growing population at the time. The response of the British government also contributed to the disaster. While millions of people were starving, Ireland was forced to export abundant harvests of wheat and dairy products.

The famine brought death. But, with lasting consequences, it also brought resentment and more hate.

Irish Home Rule Party and Charles Stewart Parnell – 1877
“Home Rule” became the cry of all who wanted self-government in Ireland. Until 1877, there was no effective challenge to Britain’s rule over Ireland. Then, at the age of 31, Charles Stewart Parnell (1846-91) became leader of the Irish Home Rule Party, which became the Irish Parliamentary Party in 1882.

Parnell failed to achieve Home Rule. For his efforts, though, he was widely recognised as ‘the uncrowned king of Ireland’. His efforts gave the idea of Home Rule legitimacy.

Irish Unionists in Northern Ireland
In Ulster in the north of Ireland the majority of people were Protestants. They favoured the union with Britain – fearing that they would suffer retribution and a loss of rights as a minority in a Catholic controlled country. The Unionist Party was lead by Sir Edward Carson. Carson threatened an armed struggle for a separate Northern Ireland if independence was granted to Ireland.

Home Rule Adopted – 1912 – but not enacted because of WWI
A Home Rule Bill was passed in 1912 but crucially it was not brought into law. The Home Rule Act was suspended at the outbreak of World War One in 1914. Many Irish nationalists believed that Home Rule would be granted after the war if they supported the British war effort. John Redmond the leader of the Irish Parliamentary Party encouraged people to join the British forces and many did join. However, a minority of nationalists did not trust the British government leading to one of the most pivotal events in Irish history, the Easter Rising.

Easter Rising – Irish rebels defeated – 1916
On April 24 (Easter Monday) 1916, two groups of armed rebels, the Irish Volunteers and the Irish Citizen Army seized key locations in Dublin. The Irish Volunteers were led by Padraig Pearse and the Irish Citizen Army was led by James Connolly. Outside the GPO (General Post Office) in Dublin city centre, Padraig Pearse read the Proclamation of the Republic which declared an Irish Republic independent of Britain. Battles ensued with casualties on both sides and among the civilian population. The Easter Rising finished on April 30th with the surrender of the rebels. The majority of the public was actually opposed to the Rising. However, public opinion turned when the British administration responded by executing many of the leaders and participants in the Rising. All seven signatories to the proclamation were executed including Pearse and Connolly.

Declaration of Independence – 1919
Two of the key figures who were involved in the rising who avoided execution were Éamon de Valera and Michael Collins. In the December 1918 elections the Sinn Féin party led by Éamon de Valera won a majority of the Ireland based seats of the House of Commons. On the 21 January 1919 the Sinn Féin members of the House of Commons gathered in Dublin to form an Irish Republic parliament called Dáil Éireann, unilaterally declaring power over the entire island.

War of Independence – 1919-1921
What followed is known as the ‘war of independence’ when the Irish Republican Army – the army of the newly declared Irish Republic – waged a guerilla war against British forces from 1919 to 1921. One of the key leaders of this war was Michael Collins. In December 1921 a treaty was signed by the Irish and British authorities. While a clear level of independence was finally granted to Ireland the contents of the treaty were to split Irish public and political opinion. One of the sources of division was that Ireland was to be divided into Northern Ireland (6 counties) and the Irish Free State (26 counties) which was established in 1922.

Government of Ireland Act – 1920
The Government of Ireland Act of 1920 created the Irish Free State. At the same time, the Parliament of Northern Ireland was created. The Parliament consisted of a majority of Protestants and while there was relative stability for decades.

Civil War – 1922-1923
A Civil War followed from 1922 to 1923 between pro and anti treaty forces, with Collins (pro-treaty) and de Valera (anti-treaty) on opposing sides. The consequences of the Civil war can be seen to this day where the two largest political parties in Ireland have their roots in the opposing sides of the civil war – Fine Gael (pro-treaty) and Fianna Fáil (anti-treaty). A period of relative political stability followed the Civil war.

Northern Ireland Catholics Rebel – 1968
Stability in Northern Ireland ended in the late 1960s due to systematic discrimination against Catholics. 1968 saw the beginning of Catholic civil rights marches in Northern Ireland. These protests led to violent reactions from some Protestant loyalists and from the police force. What followed was a period known as ‘the Troubles’ when nationalist/republican and loyalist/unionist groups clashed.

In 1969 British troops were sent to maintain order and to protect the Catholic minority. However, the army soon came to be seen as a tool of the Protestant majority by the minority Catholic community.

Bloody Sunday – 1972 and “The Troubles”

This was reinforced by events such as Bloody Sunday in 1972 when British forces opened fire on a Catholic civil rights march in Derry killing 13 people. An escalation of paramilitary violence followed with many atrocities committed by both sides. The period of ‘the Troubles’ are generally agreed to have finished with the Belfast (or Good Friday) Agreement of April 10th 1998.
Between 1969 and 1998 it is estimated that well over 3,000 people were killed by paramilitary groups on opposing sides of the conflict.
Since 1998 considerable stability and peace has come to Northern Ireland. In 2007 former bitterly opposing parties the Democratic Unionist Party (DUP) and Sinn Féin began to co-operate in government together in Northern Ireland.

Republic of Ireland – 20th Century to present day
The 1937 Constitution re-established the state as the Republic of Ireland.
In 1973 Ireland joined the European Economic Community (now the European Union).
In the 1980s the Irish economy was in recession and large numbers of people emigrated for employment reasons. Many young people emigrated to the United Kingdom, the United States of America and Australia.
Economic reforms in the 1980s along with membership of the European Community (now European Union) created one of the world’s highest economic growth rates. Ireland in the 1990s, so long considered a country of emigration, became a country of immigration. This period in Irish history was called the Celtic Tiger.

Ireland’s History

A BRIEF HISTORY OF IRELAND

CREDIT: http://www.livinginireland.ie/en/culture_society/a_brief_history_of_ireland/
CREDIT: http://www.wesleyjohnston.com/users/ireland/past/history/index.htm

Foreward
Ireland is beautiful – so beautiful that it is overwhelming.

It is blessed with natural beauty: beautiful land; abundant rivers, streams, harbors; hilltops and long views everywhere.

It is also blessed with what history has added: lovely villages, great ports, winding roads, castles and saved remnants of its proud past.

As the visitor moves from county to county, a few will ask: “What is Ireland’s history?”

The answer, of course, is complex – and every Irish man, woman and child proudly feels all the glory and all the pain. It is a rich heritage. And it is by no means monolithic.

Ireland’s heritage is conquest, first by Celts, then by Irish Kings, then by Vikings, then Anglo-Normans, and finally by English Kings. From conquest comes rebellion – the Irish are rebels to the core. With rebellion comes, way too frequently, crushing defeat and retribution.

In spite of this, using today’s lens, Ireland looks resilient and proud – the Irish always come back! And they look victorious – ultimately triumphing. It is an exciting history of leaders, their shifting lands, their shifting allegiances, treacheries and betrayals, and evolving forms of government and administration of justice.

Overview
The history below starts from the beginning. This overview starts from the end, today, and goes backward, from present-day Ireland to first evidence of human activity.

Today, Ireland is split into two – the Republic of Ireland (4.8 million population) and Northern Ireland (1.8 million). The split is the legacy of the Irish War of Independence in 1919-1922. It’s end culminated in this compromise, which neither side liked and which has been contentious ever since.

The Republic of Ireland in independent, and joined the EU in 1973. Northern Ireland is part of Great Britain. It was created in 1920, and the War of Independence left it unchanged.

From 1798 to 1922, Ireland lost population and failed to recover from two brutal events: the crushing defeat of the the Irish rebellion in 1798, and the devastating Potato Famine of 1846-1848. The English rulers were not kind during this period, and it exacerbated the simmering hatred that the Irish felt for the English.

Why such hatred? Because, from 1541 to 1798, the English attempted to impose their laws and customs, and the Irish resisted, and sometimes the resistance became open rebellion. These rebellions were often brutally crushed, and retribution was swift. The Irish hated them for it. The English brought to Ireland hated movements of all kinds. There were movements to take away Irish religion; to take away Irish land; to take away Irish rights; and to invoke cruel forms of genocide (for example, look at the history of the decimating Irish potato famine of 1846-8). Henry VIII kicked off this horrible period when he declared himself King of Ireland in 1541, with the Pope’s blessing.

From 1169 to 1541, England was in the hands of Anglo-Norman lords and Irish Kings. The lords were the result of the successful conquest of much of Ireland by “Strongbow”. The conquest began with his landing in 1169. Strongbow was himself an English Earl, but he brought with him a coalition of English and Normans.

From the eighth century until the end of the twelfth century – 400 years – Ireland was ruled by Irish Kings and Vikings. It was also a period of early christianity, with monasteries being built throughout the country. Viking influence faded as Irish Kings began to dominate.

Before the fifth century, Ireland was an island of farmers. Amazingly, the Island missed a period of Roman Empire domination. Historians have reported discussion by Roman leaders to invade Ireland, but those ideas were never implemented. As a result, Ireland is one of the few countries in Europe without legacies from the Roman Empire.

Microcosm?
The intrigue, the conquest, the rebellion, the retribution: is Ireland, this small island of six million people, a microcosm of the world? Does it provide universal insights?

Possibly. Here are two:

Incentives to control land and expand reach are powerful.

The story of Ireland is a story of powerful men exploiting opportunities. Any Irish King, or Norman Lord, or English Kings encouraged loyalists to to form alliances which bound them to fight for land. Once victorious, the loyalist would bring that victory back to the King, add – more often than not – the King would grant that land back to the loyalist (Lord) who had conquered the land. This, of course, was only done with a pledge of continuing loyalty from the loyalist, and a pledge to give back to the king payments in the form of taxes, armies, or whatever the king required.

Conquest breeds resentment, and even hatred.

The story of Ireland is a story of conquest, followed by new rules and retribution for the conquered. We know change is hard, and culture change is the hardest of all. In all cases, imposed changes fostered resentment, and retribution, often harsh, bred hatred. When it.surfaced, it became rebellion.

A BRIEF HISTORY OF IRELAND

Early Irish History
Ireland’s early settlers trace to about 10,000 years ago – a relatively late stage in European terms. Farming began around 4000 BC. Celts came to Ireland from mainland Europe around 300 BC. Ireland’s language. Irish (or Gaeilge), stems from Celtic language.

Early Christian and Viking Ireland – 600 AD
Saint Patrick and other missionaries brought Christianity in the early to mid-5th century, replacing the indigenous pagan religion by the year 600 AD. The Rock of Cashel stands today as a testimony to this long history of missionaries for Christ, led by Saint Patrick.

At the end of the 8th century, Vikings from Scandinavia began to invade and then gradually settle into and mix with Irish society. The Vikings founded Dublin, Ireland’s capital city in 988. Following the defeat of the Vikings by Brian Boru, the High King of Ireland, at Clontarf in 1014, Viking influence faded.

The Anglo-Norman Era and “Strongbow” – 1166
The English and Normans arrived in the twelfth century (1166), driving out the Vikings. They brought walled towns, castles, churches, and monasteries. They also increased agriculture and commerce in Ireland.

They were actually invited. The then-King of Leinster visited England and met with King Henry there, as well as many noblemen. His mission: garner support to retake his lands. The king demurred,, so he sought the support of Anglo-French noblemen in re-establishing his prior dominance (he had been badly defeated in a battle by the “High King of Ireland”, who was from Connaught).

Several noblemen offered help. They were led by the Earl of Pembroke, also known as Strongbow. Strongbow’s army landed in 1169 and quickly re-took Leinster.

Importantly, they went further and also defeated Dublin, exiling its Viking king. In 1171, the existing King of Leinster (Mac Murchada) died, and and Strongbow became King of Leinster.
The English King Henry decided to sail to Ireland in 1171. Strongbow pledged his loyalty to Henry, and every major Irish king did as well (other than O’Connor of Connacht and O’Neill in the north).

In the next period of years, the Anglo-Normans consolidated their new lands by building castles, setting up market towns and engaging in large-scale colonisation. Prince John arrived in Waterford in 1185 and initiated the building of a number of castles in the South East region. An example is Dungarvan Castle (King John’s Castle).

Importantly, the Anglo-Normans did not move the native Irish from their land in any major way.

Ireland became a Kingdom in 1199 with Papal approval. All English laws were extended to Ireland in 1210. By 1261, most of Ireland was ruled by Anglo-Norman lords, under the watchful eye of the King of England. This was to be short-lived.

In fact, by 1316, the King has essentially lost control of Ireland, except for Dublin. Cleverly, the few remaining Irish Kings (The Irish Lords in Ulster, O’Neill and O’Donnell) allied with Robert Bruce of Scotland, whose military prowess had become so legendary that he actually was crowned King of Scotland in 1314. With Bruce’s help, they together essentially defeated the Anglo-Normans in 1315. Edward Bruce was named King of Ireland until he was assassinated by Normans in 1318.

From 1261 to 1541, several major attempts were made by English Kings to regain control. Several invasions by English kings during this period were deeply resented by all locals, including the lords. They were hailed as successes at the time, but were also short-lived. By 1450, English control of Ireland had been reduced to Dublin.

Meanwhile, across centuries, many Norman lords and their ancestors essentially “went native” – increasingly adopting Irish customs and culture through inter-marriage, etc.

Anglo-Norman Feudalism – Counties, Liberties and Charters
The Irish adventure of English Kings can be best understood by studying incentives – the motives by which men went to war, to win land, and to then subjugate themselves to the King.

Before the “feudal” system of government and tex collection is discussed, a simple method of keeping score is useful. The score in questions is: how can you easily measure how much control England had at any given moment in time? The answer lies in counting how many of three. jurisdictions existed at any point in time:

“counties” were areas in Ireland that were under the complete control of the King and his feudal system.
Liberties were areas in Ireland that were loyal to the King, but did not participate in tributes to the king via feudal arrangements.
Charters were areas in Ireland that were independent of the King, completely under Irish Kings and Lords. However, importantly, these areas had treaties with the King that specified how they could co-exist.

Knowing this, the King had every incentive to create counties, which would pay taxes and pledge their allegiance to the Crown. The King’s men would conquer lands that were Charters, and make them Liberties or Counties. Then, they would slowly evolve any remaining Liberties to be Counties. This describes the first three centuries of evolving Irish Government. In 1250, vast majorities of northern Ireland were chartered lands, while counties were mostly strong on the east coast.

So how did it come to pass that Ireland was mostly counties by the 16th century?

The incentives for the warrior noblemen were enormous. The King, on seeing that Irish land had been conquered by his loyal subject, would frequently make a land grant back to that noblemen (mostly of the land that had just been conquered) – in return for feudal arrangements discussed below.

Anglo-Norman society was based on the “feudal” system of government, a standard practice though-out Europe in the day. Under this system, the king owned all land. He in turn granted it to Lords. In return, the Lords agreed to pay an annual “tribute” to the King. This could take the form of money, goods, or even armies in times of war.

The Lords, in turn, granted parcels of their lordships to peasants (ordinary people) in return for money, a soldier at time of war or some goods. Many lords set up market towns in their lordships to encourage trade and to convert goods into money. At the bottom of the hierarchy were landless peasants who were granted a plot of land on another peasant’s plot in return for manual labour on the farm.

The Irish system, by contrast, saw no overall ownership of land, but rather each individual Lord had absolute ownership of their land. The commoners worked on the Lord’s land in return for accommodation and food.
Peasants were granted land by a lord in return for annual payment of crops. The lords, in turn, were granted land by the King.

Henry VIII, “Plantations” – 1534
King Henry VIII declared himself head of the Church in England in 1534. He also ensured that the Irish Parliament declared him King of Ireland in 1541, with the support of the Pope.

There followed 250 years of brutality that culminated in a deep hatred by the Irish for the English.

From 1541 to 1798, Ireland had been in the grip of the English Crown. Those 250 years – from 1541 to 1798 – are scandalous, because the English brought to Ireland hated movements of all kinds. There were movements to change their religion (from Catholic to Anglican; to steal Irish land; to take away Irish rights; and in many ways to invoke on the Irish people a peculiar form of genocide (for example, look at the history of the decimating Irish potato famine of 1846-8). Henry VIII kicked off this horrible period when he declared himself King of Ireland in 1641, with the Pope’s blessing. The English brutally ruled from 1541 to 1798, and the Irish hated them for it.

Enforcing his will, to change England and Ireland from Catholic to Protestant (he named himself the head of the Anglican church), the King adopted a “plantation” policy. Under this policy, Protestants would get massive land grants, displacing Catholic land-holders. Thousands of English and Scottish Protestant settlers arrived during his reign. Catholics lost their land.

From this period on, a common theme became Irish rebellion followed by crushing defeat followed by retribution. The victors, England, understandably attempted to impose their will. In the process of doing so, though, it became a hated history – of depriving catholics of their land, and then their rights, and then their very lives.

Bloody 17th Century and “Penal Laws”
The 17th century was a bloody one in Ireland. England imposed the “Penal laws” on Ireland. These laws took away rights from Catholics. They took away the right, for example, to rent or own land above a certain value. They outlawed Catholic clergy,. They forbid Catholic higher education, entry into the professions. During the 18th century, Penal laws eased but by then resentment and hate dominated the country.

Defeated During Rebellion – 1798
In 1782, Henry Grattan (a Protestant) successfully agitated for a more favourable trading relationship with England and for greater legislative independence for the Parliament of Ireland. Inspired by the French Revolution, in 1791 an organisation called the United Irishmen was formed with the ideal of bringing Irish people of all religions together to reform and reduce Britain’s power in Ireland. Its leader was a young Dublin Protestant called Theobald Wolfe Tone. The United Irishmen were the inspiration for the armed rebellion of 1798. Despite attempts at help from the French the rebellion failed and in 1801 the Act of Union was passed uniting Ireland politically with Britain.

Catholic Emancipation and Daniel O’Connell – 1829
In 1829 one of Ireland’s greatest leaders Daniel O’Connell, known as ‘the great liberator’ was central in getting the Act of Catholic Emancipation passed in the parliament in London. He succeeded in getting the total ban on voting by Catholics lifted and they could now also become Members of the Parliament in London.

After this success O’Connell aimed to cancel the Act of Union and re-establish an Irish parliament. However, this was a much bigger task and O’Connell’s approach of non-violence was not supported by all. Such political issues were overshadowed however by the worst disaster and tragedy in Irish history – the great famine.

The Great Famine – 1845 – 1847
When a potato blight destroyed the crops of 1845, 1846, and 1847, disaster followed. During this decade, Ireland’s population plummeted from 8 to 4 million. Two million died. Others left – seeking refuge in America. Potatoes were the staple food of a growing population at the time. The response of the British government also contributed to the disaster. While millions of people were starving, Ireland was forced to export abundant harvests of wheat and dairy products.

The famine brought death. But, with lasting consequences, it also brought resentment and more hate.

First Move to “Home Rule” defeated – 1877- Irish Home Rule Party and Charles Stewart Parnell
“Home Rule” became the cry of all who wanted self-government in Ireland. Until 1877, there was no effective challenge to Britain’s rule over Ireland. Then, at the age of 31, Charles Stewart Parnell (1846-91) became leader of the Irish Home Rule Party, which became the Irish Parliamentary Party in 1882.

Parnell failed to achieve Home Rule. For his efforts, though, he was widely recognised as ‘the uncrowned king of Ireland’. His efforts gave the idea of Home Rule legitimacy.

Irish Unionists – led by Sir Edward Carson in Northern Ireland
In Ulster in the north of Ireland the majority of people were Protestants. They favoured the union with Britain – fearing that they would suffer retribution and a loss of rights as a minority in a Catholic controlled country. The Unionist Party was lead by Sir Edward Carson. Carson threatened an armed struggle for a separate Northern Ireland if independence was granted to Ireland.

Second Move to Home Rule Successful – 1912 – but not enacted because of WWI
A Home Rule Bill was passed in 1912 but crucially it was not brought into law. The Home Rule Act was suspended at the outbreak of World War One in 1914. Many Irish nationalists believed that Home Rule would be granted after the war if they supported the British war effort. John Redmond the leader of the Irish Parliamentary Party encouraged people to join the British forces and many did join.

However, a minority of nationalists did not trust the British government leading to one of the most pivotal events in Irish history, the Easter Rising.

Declaration of Independence I – Easter Rising – Irish rebels defeated – 1916
On April 24 (Easter Monday) 1916, two groups of armed rebels, the Irish Volunteers and the Irish Citizen Army seized key locations in Dublin. The Irish Volunteers were led by Padraig Pearse and the Irish Citizen Army was led by James Connolly. Outside the GPO (General Post Office) in Dublin city centre, Padraig Pearse read the “Proclamation of the Republic” (the Irish Declaration of Independence). The. Proclamation declared an Irish Republic independent of Britain.

Battles ensued with casualties on both sides and among the civilian population. The Easter Rising finished on April 30th with the surrender of the rebels. The majority of the public was actually opposed to the Rising. However, public opinion turned when the British administration responded by executing many of the leaders and participants in the Rising.

All seven signatories to the proclamation were executed including Pearse and Connolly.

Declaration of Independence II – 1919
Two of the key figures who were involved in the rising who avoided execution were Éamon de Valera and Michael Collins. In the December 1918 elections the Sinn Féin party led by Éamon de Valera won a majority of the Ireland based seats of the House of Commons. On the 21 January 1919 the Sinn Féin members of the House of Commons gathered in Dublin to form an Irish Republic parliament called Dáil Éireann, unilaterally declaring power over the entire island.

War of Independence – 1919-1921
What followed is known as the ‘war of independence’ when the Irish Republican Army – the army of the newly declared Irish Republic – waged a guerilla war against British forces from 1919 to 1921. One of the key leaders of this war was Michael Collins.

Michael Collins led and initiative that ended with the label “Bloody Sunday”. It was one day of violence in Dublin on November 21, 1920, during the Irish War of Independence. In total, 32 people were killed, including thirteen British soldiers and police, sixteen Irish civilians, and three Irish republican prisoners.

The day began when Michael Collins led the IRA to assassinate the ‘Cairo Gang’ – British undercover intelligence agents. IRA members went to a number of addresses and shot dead fourteen people.

Later that afternoon, members of the Auxiliary Division and RIC opened fire on the crowd at a Gaelic football match in Croke Park, killing eleven civilians and wounding at least sixty.That evening, three IRA suspects being held in Dublin Castle were beaten and killed by their captors, who claimed they were trying to escape.

Overall, while its events cost relatively few lives, Bloody Sunday was considered a victory for the IRA, as Collins’s operation severely damaged British intelligence, The net effect was to increase support for the IRA at home and abroad.

Third attempt at Home Rule adopted – 1920 Government of Ireland Act – Creates Southern and Northern Ireland under Home Rule
This Act of Parliament was intended to keep Ireland part of the United Kingdom – through Home Rule institutions. The Act establishes two new subdivisions of Ireland: the six north-eastern counties were to form “Northern Ireland”, while the larger part of the country was to form “Southern Ireland”.

Home Rule never took effect in Southern Ireland, due to the Irish War of Independence, which resulted instead in the Anglo-Irish Treaty and the establishment in 1922 of the Irish Free State. However, the institutions set up under this Act for Northern Ireland continued to function until they were suspended by the British parliament in 1972 as a consequence of the Troubles.The Government of Ireland Act of 1920 created the Irish Free State. At the same time, the Parliament of Northern Ireland was created. The Parliament consisted of a majority of Protestants and while there was relative stability for decades.

Anglo-Irish Treaty Ends War of Independence – Divides Ireland – Dec 1921
In December 1921 a treaty was signed by the Irish and British authorities. One of the key provisions of the treaty was a compromise. Ireland was to be divided into Northern Ireland (6 counties) and the Irish Free State (26 counties) which was established in 1922.

As in the Home Rule Act of 1920, most signatories of the treaty were hopeful that the division of the country into Ireland and Northern Ireland would be temporary. However, the division has stayed in place for almost a century.

While a clear level of independence was finally granted to Ireland the contents of the treaty were to split Irish public and political opinion.

Instead of bringing peace, the signing of the Treaty plunged the country into a three year Civil War.

Civil War – 1922-1923
A Civil War followed from 1922 to 1923 between pro and anti treaty forces, with Collins (pro-treaty) and de Valera (anti-treaty) on opposing sides. The consequences of the Civil war can be seen to this day where the two largest political parties in Ireland have their roots in the opposing sides of the civil war – Fine Gael (pro-treaty) and Fianna Fáil (anti-treaty).

Republic of Ireland – 1937 – Join EU
The 1937 Constitution re-established the state as the Republic of Ireland.
In 1973 Ireland joined the European Economic Community (now the European Union).

Northern Ireland Catholics Rebel – 1968
Stability in Northern Ireland ended in the late 1960s due to systematic discrimination against Catholics. 1968 saw the beginning of Catholic civil rights marches in Northern Ireland. These protests led to violent reactions from some Protestant loyalists and from the police force. What followed was a period known as ‘the Troubles’ when nationalist/republican and loyalist/unionist groups clashed.

In 1969 British troops were sent to maintain order and to protect the Catholic minority. However, the army soon came to be seen as a tool of the Protestant majority by the minority Catholic community.

Bloody Sunday – 1972 and “The Troubles”

This was reinforced by events such as Bloody Sunday in 1972 when British forces opened fire on a Catholic civil rights march in Derry killing 13 people. An escalation of paramilitary violence followed with many atrocities committed by both sides.

Between 1969 and 1998 it is estimated that well over 3,000 people were killed by paramilitary groups on opposing sides of the conflict.

Peace with Belfast Agreement – 1998
The period of ‘the Troubles’ are generally agreed to have finished with the Belfast (or Good Friday) Agreement of April 10th 1998.

Since 1998 considerable stability and peace has come to Northern Ireland. In 2007 former bitterly opposing parties the Democratic Unionist Party (DUP) and Sinn Féin began to co-operate in government together in Northern Ireland.

20th Century to present day
In the 1980s the Irish economy was in recession and large numbers of people emigrated for employment reasons. Many young people emigrated to the United Kingdom, the United States of America and Australia.
Economic reforms in the 1980s along with membership of the European Community (now European Union) created one of the world’s highest economic growth rates. Ireland in the 1990s, so long considered a country of emigration, became a country of immigration. This period in Irish history was called the Celtic Tiger.

Amazon Crush: July 2018 Edition

+++++++++++++++++CURRENT POST +++++++++++++++=

Amazon Crush continues unabated.

Amazon has surprised everyone, as show in this remarkable chart of revenue growth, topping off at $177 billion in 2017.

2017
177 billion
2016
136 billion
2015
107,010
2014
88,988
2013
74,452
2012
61,093
2011
48,077
2010
34,204

The old forecast that Amazon will exceed $250 billion in sales by 2020 is looking about right. People are now saying Amazon is headed to $500 billion. I believe them.

CREDIT: https://www.statista.com/statistics/266282/annual-net-revenue-of-amazoncom/

“The e-retailer generated $177.9 billion in revenue in 2017, up 30.8% from $136.00 billion in 2016. Its net income also climbed 27.8% to $3.03 billion from $2.37 billion in 2016.”

Amazon’s 10K documents this remarkable year:

CREDIT: http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=97664&fid=15414896

Jeff Bezos shared his pride in his 2018 Shareholder’s Letter:

CREDIT: https://www.sec.gov/Archives/edgar/data/1018724/000119312518121161/d456916dex991.htm

He identifies 16 sources of pride:

Prime
AWS
Marketplace
Amazon Music
Fashion
Whole Foods
Alexa
Amazon Devices
Prime Video
Amazon Go
Treasure Truck
India
Sustainability
Empowering Small Business
Investment and Job Creation
Career Choice

Each subject is discussed below, but one stands out for me: Amazon Fresh has been replaced by Whole Foods. Here is how Bezos says it:

“When we closed our acquisition of Whole Foods Market last year, we announced our commitment to making high-quality, natural and organic food available for everyone, then immediately lowered prices on a selection of best-selling grocery staples, including avocados, organic brown eggs, and responsibly-farmed salmon. We followed this with a second round of price reductions in November, and our Prime member exclusive promotion broke Whole Foods’ all-time record for turkeys sold during the Thanksgiving season. In February, we introduced free two-hour delivery on orders over $35 for Prime members in select cities, followed by additional cities in March and April, and plan continued expansion across the U.S. throughout this year. We also expanded the benefits of the Amazon Prime Rewards Visa Card, enabling Prime members to get 5% back when shopping at Whole Foods Market. Beyond that, customers can purchase Whole Foods’ private label products like 365 Everyday Value on Amazon, purchase Echo and other Amazon devices in over a hundred Whole Foods stores, and pick-up or return Amazon packages at Amazon Lockers in hundreds of Whole Foods stores. We’ve also begun the technical work needed to recognize Prime members at the point of sale and look forward to offering more Prime benefits to Whole Foods shoppers once that work is completed.”

+++++++++++ PAST AMAZON CRUSH posts ++++++++++

Amazon Crush Sept 2017 Edition
===Amazon Crush Sept 2017 Edition===

Amazon now has the world’s attention. It just landed the cover story of The Economist, printed in its entirety below (together with a YouTube video and a Bloomberg article cited below).

A quick scan of this blog reminds me that I began tracking Amazon in early 2014 with multiple posts, copied here.

I speculated in EARLY 2014 (see post below) that Amazon revenue in 2015 would exceed $100 billion. They finished 2015 at $107 billion – up $11 billion vs 2014. I forecast $130 billion in 2016. They closed at $136 billion. Look at this remarkable growth curve!

2016
136 billion
2015
107,010
2014
88,988
2013
74,452
2012
61,093
2011
48,077
2010
34,204

The old forecast that Amazon will exceed $250 billion in sales by 2020 is looking about right. People are now saying Amazon is headed to $500 billion. I believe them.

Salient points from the article below:

The former bookseller accounts for more than half of every new dollar spent online in America.
Since the beginning of 2015 its share price has jumped by 173%, seven times quicker than in the two previous years (and 12 times faster than the S&P 500 index).
With a market capitalisation of some $400bn, it is the fifth-most-valuable firm in the world.
Last year cashflow (before investment) was $16bn, more than quadruple the level five years ago.
It continues to struggle with grocery, and yet Amazon is moving aggressively to learn from their mistakes. Their purchase of Whole Foods signals their learning that many consumers want to touch their groceries before buying, and they frequently enjoy the buying experience. A recent article in

==================ECONOMIST ARTICLE=========

CREDIT: https://www.economist.com/news/leaders/21719487-amazon-has-potential-meet-expectations-investors-success-will-bring-big

CREDIT: https://www.youtube.com/watch?v=H0UH1TxjcEA

Corporate ambitions
Amazon, the world’s most remarkable firm, is just getting started
Amazon has the potential to meet the expectations of investors. But success will bring a big problem

Mar 25th 2017

AMAZON is an extraordinary company. The former bookseller accounts for more than half of every new dollar spent online in America. It is the world’s leading provider of cloud computing. This year Amazon will probably spend twice as much on television as HBO, a cable channel. Its own-brand physical products include batteries, almonds, suits and speakers linked to a virtual voice-activated assistant that can control, among other things, your lamps and sprinkler.
Yet Amazon’s shareholders are working on the premise that it is just getting started. Since the beginning of 2015 its share price has jumped by 173%, seven times quicker than in the two previous years (and 12 times faster than the S&P 500 index). With a market capitalisation of some $400bn, it is the fifth-most-valuable firm in the world. Never before has a company been worth so much for so long while making so little money: 92% of its value is due to profits expected after 2020.

That is because investors anticipate both an extraordinary rise in revenue, from sales of $136bn last year to half a trillion over the next decade, and a jump in profits. The hopes invested in it imply that it will probably become more profitable than any other firm in America. Ground for scepticism does not come much more fertile than this: Amazon will have to grow faster than almost any big company in modern history to justify its valuation. Can it possibly do so?
It is easy to tick off some of the pitfalls. Rivals will not stand still. Microsoft has cloud-computing ambitions; Walmart already has revenues nudging $500bn and is beefing up online. If anything happened to Jeff Bezos, Amazon’s founder and boss, the gap would be exceptionally hard to fill. But the striking thing about the company is how much of a chance it has of achieving such unprecedented goals (see article).
A new sort of basket-case
This is largely due to the firm’s unusual approach to two dimensions of corporate life. The first of these is time. In an era when executives routinely whine about pressure to produce short-term results, Amazon is resolutely focused on the distant horizon. Mr Bezos emphasizes continual investment to propel its two principal businesses, e-commerce and Amazon Web Services (AWS), its cloud-computing arm.
In e-commerce, the more shoppers Amazon lures, the more retailers and manufacturers want to sell their goods on Amazon. That gives Amazon more cash for new services—such as two-hour shipping and streaming video and music—which entice more shoppers. Similarly, the more customers use AWS, the more Amazon can invest in new services, which attract more customers. A third virtuous circle is starting to whirl around Alexa, the firm’s voice-activated assistant: as developers build services for Alexa, it becomes more useful to consumers, giving developers reason to create yet more services.
So long as shareholders retain their faith in this model, Amazon’s heady valuation resembles a self-fulfilling prophecy. The company will be able to keep spending, and its spending will keep making it more powerful. Their faith is sustained by Amazon’s record. It has had its failures—its attempt to make a smartphone was a debacle. But the business is starting to crank out cash. Last year cashflow (before investment) was $16bn, more than quadruple the level five years ago.
If Amazon’s approach to time-frames is unusual, so too is the sheer breadth of its activities. The company’s list of current and possible competitors, as described in its annual filings, includes logistics firms, search engines, social networks, food manufacturers and producers of “physical, digital and interactive media of all types”. A wingspan this large is more reminiscent of a conglomerate than a retailer, which makes Amazon’s share price seem even more bloated: stockmarkets typically apply a “conglomerate discount” to reflect their inefficiencies.
Many of these services support Amazon’s own expansion and that of other companies. The obvious example is AWS, which powers Amazon’s operations as well as those of other firms. But Amazon also rents warehouse space to other sellers. It is building a $1.5bn air-freight hub in Kentucky. It is testing technology in stores to let consumers skip the cash register altogether, and experimenting with drone deliveries to the home. Such tools could presumably serve other customers, too. Some think that Amazon could become a new kind of utility: one that provides the infrastructure of commerce, from computing power to payments to logistics.
A giant cannot hide
And here lies the real problem with the expectations surrounding Amazon. If it gets anywhere close to fulfilling them, it will attract the attention of regulators. For now, Amazon is unlikely to trigger antitrust action. It is not yet the biggest retailer in America, its most mature market. America’s antitrust enforcers look mainly at a firm’s effect on consumers and pricing. Seen through this lens, Amazon appears pristine. Consumers applaud it; it is the most well-regarded company in America, according to a Harris poll. (AWS is a boon to startups, too.)
But as it grows, so will concerns about its power. Even on standard antitrust grounds, that may pose a problem: if it makes as much money as investors hope, a rough calculation suggests its earnings could be worth the equivalent of 25% of the combined profits of listed Western retail and media firms. But regulators are also changing the way they think about technology. In Europe, Google stands accused of using its clout as a search engine to extend its power to adjacent businesses. The comparative immunity from legal liability of digital platforms—for the posting of inflammatory content on Facebook, say, or the vetting of drivers on Uber—is being chipped away.
Amazon’s business model will also encourage regulators to think differently. Investors value Amazon’s growth over profits; that makes predatory pricing more tempting. In future, firms could increasingly depend on tools provided by their biggest rival. If Amazon does become a utility for commerce, the calls will grow for it to be regulated as one. Shareholders are right to believe in Amazon’s potential. But success will bring it into conflict with an even stronger beast: government.
This article appeared in the Leaders section of the print edition under the headline “Amazon’s empire”

===Amazon Crush Apr 2017 Edition===

Incredible 18 months for Amazon, but the new phrase is “retail apocalypse”.

Financial Times Article on Amazon

For all prior Amazon Updates, see 11/2016 Update

====Amazon Crush March 2017 Edition ===
CREDIT: https://www.bloomberg.com/news/features/2017-03-20/inside-amazon-s-battle-to-break-into-the-800-billion-grocery-market

Inside Amazon’s Battle to Break Into the $800 Billion Grocery Market

After almost a decade of food retail experiments with little success online, the e-commerce giant is embracing the physical stores it once shunned.

By Spencer Soper and Olivia Zaleski
March 20, 2017, 6:00 AM EDT

“Very wasteful” isn’t a phrase usually associated with Amazon.com Inc., which is so cost-conscious it once removed the light bulbs from its cafeteria’s vending machines. But after spending several months analyzing the online retailer’s grocery-shipping hubs back in 2014, that’s exactly how a mechanical engineering student described its approach to selling bananas.
Workers at Amazon Fresh, the company’s grocery-delivery business, threw away about a third of the bananas it purchased because the service only sold the fruit in bunches of five, the student concluded. Employees trimmed each bunch down to size and chucked the excess.

The research paper by Vrajesh Modi, who now works for Boston Consulting Group, highlighted other problems: Poorly trained employees often stood around with nothing to do. Moldy strawberries were frequently returned by disappointed customers. Amazon’s inspectors believed their corporate bosses didn’t care much about the quality of the food.
Such challenges linger for Amazon. Despite several attempts to break into the $800 billion grocery industry and almost a decade in the business, the company has struggled to entice shoppers en masse to buy eggs, steaks and berries online the same way they’ve flocked to buy books, tablets and toys.
“Online grocery is failing,” said Kurt Jetta, chief executive officer of TABS Analytics, a consumer products research firm. Only 4.5 percent of shoppers made frequent online grocery purchases in 2016, up just slightly from 4.2 percent four years earlier despite big investments from companies such as Amazon, according to the firm’s annual surveys. “There’s just not a lot of demand there. The whole premise is that you’re saving people a trip to the store, but people actually like going to the store to buy groceries.”
Amazon CEO Jeff Bezos now seems to understand that he can’t win the grocery game with websites, warehouses and trucks alone. The world’s biggest online retailer sees brick-and-mortar stores playing a key role in a renewed grocery push, documents reviewed by Bloomberg show. And like it did with Amazon Fresh, the company is launching its newest projects in Seattle, its home town.

Last Tuesday, men in cherry pickers worked through driving rain to affix “Amazon Fresh” signs to a drive-in grocery location in Seattle’s Ballard neighborhood, where shoppers can stop and have online orders loaded into their cars. Crews were busy on a similar site south of downtown, readying canopies over parking spaces to protect customers from the elements as they pick up their shopping bags. The secretive company has yet to announce the projects, and crews have covered the Amazon signs in black fabric and paper.
Late last year, Amazon purchased supply-chain software from LLamasoft Inc.– a major departure for a company known for its logistics prowess, and defying an internal mantra of “we don’t buy, we build.” And it more recently restructured how various grocery teams were managed to narrow their focus and set clear priorities, according to people familiar with the company’s business.
These changes come as Amazon breaks from its standard formula of shipping products in boxes out of jam-packed warehouses. Instead, it will invite shoppers inside its own grocery stores to smell the oranges, see the tomatoes and tap the watermelons. Ahead of a national rollout next year, Amazon is testing three brick-and-mortar grocery formats in Seattle — convenience stores called Amazon Go, the drive-in grocery kiosks, and a hybrid supermarket that mixes the best of online and in-store shopping. The company may open as many as 2,000 stores, according to internal documents.

The company has said little about its grocery-store plans, aside from a video about Amazon Go’s no-checkout format that has racked up more than 8.7 million views on YouTube. An Amazon spokeswoman declined to comment for this story. Reports on its moves have dribbled out over the past several months, prompting occasional denials and retorts from the company. Seattle technology site Geekwire in August uncovered Amazon’s mysterious drive-in grocery kiosk in Ballard. The New York Post in February said Amazon aimed to create “robot-run supermarkets” that would operate with only a few people. Bezos responded by tweeting to the Post: “Whoever your anonymous sources are on this story — they’ve mixed up their meds!”
Amazon’s goal is to become a Top 5 grocery retailer by 2025, according to a person familiar with the matter. That would require more than $30 billion in annual food and beverage spending through its sites, up from $8.7 billion — including Amazon Fresh and all other food and drink sales — in 2016, according to Cowen & Co.
Reaching that milestone would require a new wave of store and warehouse investments around the country, costing billions of dollars. That’s an existential change for Amazon, which initially stayed away from perishable goods and has mostly avoided the overhead of physical stores since it started in 1994.

“A bunch of smart people at Amazon have been thinking about re-imagining the next phase of physical retail,” said Scott Jacobson, a former Amazon executive who is now a managing director at Madrona Venture Group. “They want more share of the wallet, and habitual, frequent use of Amazon for groceries is the ultimate goal.”
For Amazon shoppers interested in buying groceries online, the company’s current offerings can be confusing. Amazon Fresh is available in about 20 U.S. cities for those paying $14.99 a month. Amazon Pantry lets shoppers buy crackers, cookies, chips, coffee and other non-perishables for a delivery fee of $5.99 per box. Amazon’s speedy drop-off service, Prime Now, offers items from local grocers in some cities, but no major chains. Its stick-on Dash Buttons let people order many household products — including some groceries, but not fresh food — with a finger tap. And Subscribe & Save offers discounts to Amazon customers who sign up for periodic delivery of laundry detergent, toothpaste, diapers, paper towels and other items frequently purchased in grocery stores.
The various initiatives have been a source of increasing internal tension as employees on different projects compete to sell the same things, according to a person familiar with the matter.
One problem saddling Amazon Fresh is the high cost of losses caused by food going bad, an issue it’s never faced with books and toys. For conventional grocery sellers, browning bananas can be sold at a discount to smoothie-makers and bread bakers. Chicken breasts nearing their expiration dates can be marked down. With Amazon Fresh, such items must be discarded or are returned by frustrated customers, according to a person familiar with the matter. That has meant Amazon Fresh has lost money from spoilage at more than double the rate for a typical supermarket, said the person, who asked not to be identified discussing internal operations. The main reason Amazon began delivering groceries through Prime Now was to hand that risk back to the local grocers to lower Amazon’s costs. The company didn’t originally anticipate the scope or difficulty of these problems because so few people working on its grocery push have experience in the industry.
“Grocery is the most alluring and treacherous category,” said Nadia Shouraboura, a former Amazon executive whose company, Hointer, has been working on redefining in-store grocery shopping for the past 18 months. “It lures inventors and retailers with shopping volume and frequency, and then sinks them with low margin.”
Beyond grocery, Amazon executives have also discussed opening consumer electronics stores to showcase its gadgets and better compete with Best Buy Co., according to three people familiar with the plan. For years, Amazon executives have discussed the downside of an online-only strategy, mostly with regard to a lack of places for shoppers to try out Kindle electronic readers, the voice-activated Echo speaker and its defunct Fire smartphone. Amazon considered holding events similar to Tupperware parties when it introduced its first Kindle in 2007, fearing the products would languish unseen, Jacobson said. The handful of bookstores Amazon has opened around the country double as gadget showrooms, similar to the Apple Store.
Long term, a stronger grocery business could position Amazon to become a wholesale food-distribution business serving supermarkets, convenience stores, restaurants, hotels, hospitals and schools. But first the company has to find a way to get more people to think of Amazon when stocking their refrigerators and pantries.

Photographer: David Ryder/Bloomberg
A group of Amazon executives met late last year to discuss the disadvantage Amazon faced compared with grocery competitors such as Wal-Mart and Kroger because of its lack of physical stores and customer apprehension about buying fresh foods online. They decided they needed something more to jump-start Amazon’s grocery push beyond plans already under way for the Amazon Go convenience store, modeled for urban areas, and drive-in grocery pick-up stations suited for the suburbs.
They worked out plans for a third approach: grocery stores closer in size to a Trader Joe’s than a Wal-Mart to offer easy access to milk, eggs and produce. Other items like paper towels, cereal, canned goods and dish detergent would be stocked on-site in a warehouse where they could be easily packed and delivered to shoppers at the location, according to documents reviewed by Bloomberg. It would also serve as a delivery hub for online orders.
Brittain Ladd, a supply chain consultant who joined Amazon in 2015 and most recently worked on its Amazon Fresh and Pantry expansions, wrote about such a store prior to joining Amazon in an academic paper called “A Beautiful Way to Save Woolworths.”

Ladd envisioned two-story buildings where shoppers browse produce, bread and other fresh items on the ground level while their orders for paper towels, canned goods and cereal are packed in a warehouse above. “The stores will have the capability to fulfill online orders placed by customers within a specific radius of the store,” he wrote. “Amazon drivers and/or contractors will be assigned to deliver groceries.”
The executives decided such a store would be worth pursuing for Amazon Fresh and ordered further research about ideal locations, how to integrate the stores with grocery delivery, and the use of automation to reduce overhead. Site selection for this store’s first model is happening now in Seattle, according to a person familiar with the plan.
Meanwhile, the first wave of its new grocery experiment, Amazon Go, was unveiled in December and for now is only open to employees while the systems are tested. Cameras and sensors monitor shoppers who scan their smartphones upon entering, allowing them to grab items like sandwiches, yogurt, drinks and snacks and automatically pay for them without a checkout kiosk. Products are embedded with tracking devices that pair with customers’ phones to charge their accounts. Weight-sensitive shelves tell Amazon when to restock. A patent filed by Amazon in 2014 suggests it could use facial-recognition technology to identify and then automatically charge in-store shoppers.
In its video touting Amazon Go, the company said it was aiming to open the site to the public in “early 2017,” and it hasn’t provided an update to that timing. But the technology has been crashing in tests when the store gets too crowded and requires human quality control, people watching video images to make sure customers are charged for the right things, according to a person familiar with the plan.
Beyond letting customers skip lines, the technology gives Amazon valuable data, said Guru Hariharan, founder of Boomerang Commerce Inc., which designs software for large retailers. Even if customers don’t purchase everything they touch, there’s value in understanding what shoppers consider but don’t ultimately buy, he said. That makes it worthwhile for Amazon to work through the kinks in the technology.
“It takes a lot of time and experimentation to work through unpredictable scenarios like a child picking up an item or a person wearing sunglasses or a face muffler,” he said.
At the same time, recent work and construction permits indicate the new drive-in grocery kiosk in Ballard could open any day.

===Amazon Crush Nov 2016 Edition===

I began tracking Amazon in early 2014 with multiple posts, copied here.

I speculated in EARLY 2014 (see post below) that Amazon revenue in 2015 would exceed $100 billion.

They finished 2015 at $107 billion – up $11 billion vs 2014:

2015
107,010
2014
88,988
2013
74,452
2012
61,093
2011
48,077
2010
34,204

Revenue is up 21% for the first 9 months of 2016. So my bet is that 2016 will be about $130 billion. The old forecast that Amazon will exceed $250 billion in sales by 2020 is looking about right.

Cash for the latest 12 months is way up – they have $13 billion on hand in cash and cash equivalents.

Their stock price is at an all-time high: $767.

Reminders of earlier posts about moves by Amazon:

ECHO: The Echo is a stout, plain-looking cylinder, about the height of a toaster, that you can park just about anywhere you have Wi-Fi access, though it seems most useful in the kitchen. You can ask it anything, beginning with the word “ALEXA….”

TWITCH: video streaming …. has 40% of all internet video streaming bandwidth????

AMAZONFRESH: lets customers purchase groceries online, including perishable items like dairy, meat, and fish, which are delivered within a day.

They tested in Seattle for years, and then rolled out in 2014 to most of California, New Jersey, New York City, Philadelphia, and Washington. They then took an 18 month expansion hiatus. They will expand to Boston and UK this year. This is slower than expected.

As for its progression into other markets, there are more hurdles associated with AmazonFresh than the site’s other services that have slowed it down—the company needs to open refrigerated warehouses, carry its own stock of perishable groceries, and hire additional delivery people in each new market.

Word is that it’s difficult to convince customers it’s worth the $299/year price tag. Amazon is trying to grab a larger share of the grocery market with this expansion. Delivery currently makes up less than 5% of all grocery sales.

Here is how their 2015 10K describes their business.

General
Amazon.com opened its virtual doors on the World Wide Web in July 1995. We seek to be Earth’s most customer-centric company. We are guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. In each of our segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, and content creators. In addition, we provide services, such as advertising services and co-branded credit card agreements.

Beginning in the first quarter of 2015, we changed our reportable segments to North America, International, and Amazon Web Services (“AWS”). These segments reflect the way the Company evaluates its business performance and manages its operations. Additional information on our operating segments and product information is contained in Item 8 of Part II, “Financial Statements and Supplementary Data—Note 11—Segment Information.” See Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Supplemental Information” for supplemental information about our net sales. Our company-sponsored research and development expense is set forth within “Technology and content” in Item 8 of Part II, “Financial Statements and Supplementary Data—Consolidated Statements of Operations.”
Consumers
We serve consumers through our retail websites and focus on selection, price, and convenience. We design our websites to enable millions of unique products to be sold by us and by third parties across dozens of product categories. Customers access our websites directly and through our mobile websites and apps. We also manufacture and sell electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo. We strive to offer our customers the lowest prices possible through low everyday product pricing and shipping offers, and to improve our operating efficiencies so that we can continue to lower prices for our customers. We also provide easy-to-use functionality, fast and reliable fulfillment, and timely customer service. In addition, we offer Amazon Prime, an annual membership program that includes unlimited free shipping on millions of items, access to unlimited instant streaming of thousands of movies and TV episodes, and other benefits.
We fulfill customer orders in a number of ways, including through: North America and International fulfillment and delivery networks that we operate; co-sourced and outsourced arrangements in certain countries; and digital delivery. We operate customer service centers globally, which are supplemented by co-sourced arrangements. See Item 2 of Part I, “Properties.”

Sellers
We offer programs that enable sellers to sell their products on our websites and their own branded websites and to fulfill orders through us. We are not the seller of record in these transactions, but instead earn fixed fees, a percentage of sales, per-unit activity fees, or some combination thereof.

Here are prior posts:
=========
JUNE, 2015 POST on ECHO

Amazon’s Echo
See NYT article below on Amazon’s Echo (and note comparisons to other voice command systems, such as Siri, Google Now, and Cortana):

“If it moves nimbly, keeping ahead of Apple and Google, Amazon could transform the Echo into a something like a residential hub, the one device to control pretty much everything attached to your home.”

Functionality at the moment is:

– telling you the weather
– playing music you ask for
– adding stuff to your shopping list
– reordering items you frequently buy from Amazon
– giving you a heads-up about your nearing calendar appointments
– setting a kitchen timer
– answering the most basic of search queries

Amazon Echo, a.k.a. Alexa, Is a Personal Aide in Need of Schooling
By FARHAD MANJOOJUNE 24, 2015

The Amazon Echo, a wireless speaker and artificially intelligent personal assistant, can tell you the weather, play music and reorder items you frequently buy from Amazon, among other things.

THIS week, I asked a friend for help: “Alexa, can you write this review for me?”
“What’s your question?” Alexa responded.
“Can you write this review for me?”
“Review is spelled R-E-V-I-E-W.”
“Thanks,” I said. “That about sums it up.”

O.K., so Alexa isn’t perfect; far from it, in fact. If there is one glaring flaw in the Amazon Echo — the tiny wireless speaker and artificially intelligent personal assistant, a machine that one always addresses with the honorific “Alexa,” as if she’s some kind of digital monarch — it is that she is quite stupid.

If Alexa were a human assistant, you’d fire her, if not have her committed. “Sorry, I didn’t understand the question I heard” is her favorite response, though honestly she really doesn’t sound very sorry. She’ll resort to that line whether you ask her questions answered by a simple Google search (“How much does a cup of flour weigh?”) or something more complicated (“Alexa, what was that Martin Scorsese movie with Joe Pesci and Robert De Niro?”).

Other times, she is mind-numbingly literal. One night during the N.B.A. playoffs, I asked, “Alexa, what’s the score of the basketball game?” She proceeded to give me a two-minute, 18-part definition of the word “score” that included “a seduction culminating in sexual intercourse.” Not exactly what I was going for.

And yet, after spending three weeks testing the Echo, I really kind of love Alexa. She is just smart enough to be useful. And she keeps getting smarter. This week, after a long invitation-only preview period, Amazon began selling the Echo to the public. At $179.99, Alexa is more expensive than I’d like. (Subscribers to Amazon’s $99-a-year Prime subscription service could buy the Echo for only $100 during the preview.) But if you’re the type who enjoys taking chances on early, halfway useful tech novelties, the Echo is a fun thing to try.

And if you’re anything like me, after a week with the Echo, you may feel the device begin to change how you think about home tech. It will not seem far-fetched to expect that one day soon, you’ll have an all-knowing, all-seeing talking assistant to control your lights, thermostat, entertainment system and just about anything else at home. In Alexa, Amazon has created the perfect interface to control your home; if it adds some more intelligence, it would be quite handy.

The Echo is a stout, plain-looking cylinder, about the height of a toaster, that you can park just about anywhere you have Wi-Fi access, though it seems most useful in the kitchen. It comes with a remote control that you don’t really need, because after a quick initial setup using your smartphone, you can control pretty much everything the Echo does with your voice. (The remote does have a microphone that allows you to speak to the Echo from far away.) From there, the Echo is terrifically easy to use — say “Alexa” and ask your question.

At the moment, there are only a handful of uses for the Echo. She’s great at telling you the weather, adding stuff to your shopping list, reordering items you frequently buy from Amazon, giving you a heads-up about your nearing calendar appointments, and answering the most basic of search queries.

She is pretty good at playing music, though her main source is Amazon Prime Music, a streaming service that is included with a Prime membership. Prime Music’s selection is dreadfully limited, though, and at the moment, the Echo can’t connect to many other streaming services. Thankfully, with a few quick voice commands, Alexa can connect to your phone like any other Bluetooth speaker. That way, she can take control of music you play from most apps, including streaming apps like Spotify. You can’t call out for specific songs this way, but you can say “Alexa, pause” or “Alexa, next” and she’ll control the tunes playing from your phone.

The Echo is also a very good kitchen timer. Put your cookies in the oven; yell out, “Alexa, set timer for 12 minutes”; and she’s off. It’s far easier than fumbling with buttons on the microwave, especially when you have your hands full.

But wait a minute — can’t you do pretty much all this on your phone, your smartwatch or many other devices? Yes, you can, but Alexa is right there. She’s always plugged in. She’s always listening, and she’s fast. It’s surprising how much of a difference a few milliseconds make in maintaining the illusion of intelligence in our machines. Because Alexa is far quicker to spring into action than Siri, Apple’s digital personal assistant, especially Siri on the Apple Watch, I found her to be much more pleasant to use, even if she is frequently wrong.

Amazon says that it plans to constantly improve the Echo. During the preview period, it added a host of new features, including the ability to control some smart-home devices, built-in integration with the Pandora streaming service, and traffic information for your morning commute. I’m hoping Amazon creates an open system — what developers call an API — for the Echo, which will allow a wide variety of online services and apps to connect to the device. If it moves nimbly, keeping ahead of Apple and Google, Amazon could transform the Echo into a something like a residential hub, the one device to control pretty much everything attached to your home.

At the moment, that dream is far off. But dumb as she sometimes sounds, Alexa may be just smart enough to make it happen.

This entry was posted in Personalization, Systems, Technology and tagged Amazon, Echo, Technology, voice recognition on June 29, 2015.

========= MAY 2015 POST ============

The Amazon Crush continues:

Just look at cash:

CASH AND CASH EQUIVALENTS, END OF PERIOD
2014
14.557 billion
2013
8,.658 billion
2012
8.084 billion

Amazon has published its 10Q for Q1 2015

http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsother

Note that free cash flow has doubled:

“Free cash flow, a non-GAAP financial measure, was $3.2 billion for the trailing twelve months ended March 31, 2015, compared to $1.5 billion for the trailing twelve months ended March 31, 2014.”

Note also that international revenue is down.

They also have published their annual report:
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual

Net sales are continuing sharp growth – to $89 billion.
2014
88,988
2013
74,452
2012
61,093
2011
48,077
2010
34,204

Sales increased 20%, 22%, and 27% in 2014, 2013, and 2012
, compared to the comparable prior year periods. Changes in foreign currency exchange rates impacted net sales by $(636) million, $(1.3) billion, and $(854) million for 2014, 2013, and 2012. For a discussion of the effect on sales growth of foreign exchange rates, see “Effect of Foreign Exchange Rates” below.

North America sales increased 25%, 28%, and 30% in 2014, 2013, and 2012
, compared to the comparable prior year periods. The sales growth in each year primarily reflects increased unit sales, including sales by marketplace sellers, and AWS, which was partially offset by AWS pricing changes. Increased unit sales were driven largely by our continued efforts to reduce prices for our customers, including from our shipping offers, by sales in faster growing categories such as electronics and other general merchandise, by increased in-stock inventory availability, and by increased selection of product offerings.

nternational sales increased 12%, 14%, and 23% in 2014, 2013, and 2012
, compared to the comparable prior year periods. The sales growth in each year primarily reflects increased unit sales, including sales by marketplace sellers. Increased unit sales were driven largely by our continued efforts to reduce prices for our customers, including from our shipping offers, by sales in faster growing categories such as electronics and other general merchandise, by increased in-stock inventory availability, and by increased selection of product offerings. Additionally, changes in foreign currency exchange rates impacted International net sales by $(580) million, $(1.3) billion, and $(853) million in 2014, 2013, and 2012. “

In their annual report, they state the key to their cash flow business model:

“Because of our model we are able to turn our inventory quickly and have a cash-generating operating cycle3. On average, our high inventory velocity means we generally collect from consumers before our payments to suppliers come due.”
https://openforum.hbs.org/challenge/understand-digital-transformation-of-business/business-model/amazonfresh-well-positioned-to-capture-value-in-online-grocery

====================== Posted 20140820: Amazon Crush – Update =====
Amazon Crush – Update

Amazon update
Thanks to Oliver Wyman, Fast Company and many others for this update on last post on Amazon…..my sense from reading all:
– Twitch is Amazing! Driving 40% of all internet bandwidth???? Is that even possible? With 55 million users spending an average of 100+ minutes per day??? That is enormous! Bezos obviously intrigued and willing to take a risk to get this three-year old start-up in its fold? But why exactly? Don’t know
– FRESH is moving out. Per plan, and announcement to stockholders and also per rumor, Amazon Fresh is in a soft launch mode. The big news was the launch in LA (after 7 years in Seattle tweaking), and then it was small news that they rounded out most of the the rest of California markets – that is a HUGE expansion in less than a year. Moreover, Amazon green trucks are riding through Manhattan, and a roll there is imminent. No word yet, but I really think Chicago might be next – rumors say I am right.
– Manufacturers think this isn’t their fight. Most of them are just glad they are not retailers. But the truth is that Amazon will cause a massive reduction in retailer margin, as well as many of the brand-building activities at retail that manufacturers are used to …. horrible merchandising will replace great merchandising, forget about cold beverage sales, forget about impulse sales, etc.
– the truth is that retail is not at risk – just the marginally profitable ones.

Here are the articles:

AMAZONFRESH IN THE U.S.
After years of anticipation, AmazonFresh has now expanded its U.S. home grocery delivery service beyond its home market of Seattle.
In June 2013, it launched in Los Angeles, with more markets expected to follow. From conversations with supermarket retailers all over the U.S. and globally, it is clear that online and multi-channel competitors have come into focus as a key competitive threat, and AmazonFresh is by far the most dangerous of the new breed. What is striking is the similarity between what we hear from food retailers today and what leaders of category killers were saying back in 2009 – and we know that the category killers’ fears of Amazon proved to be well-founded.

WHAT IS AMAZON FRESH?
AmazonFresh, operating in pilot mode in Seattle since 2007, allows shopping online and on mobile apps. The assortment is surprisingly broad and deep, with between 10,000 and 30,000 items, depending on the market, including (for example) 400+ produce items, 500+ meat and seafood items, 1,300+ beverage items and 4,000+ health and beauty items. Unlike the traditional Amazon model, AmazonFresh prices on consumables are currently higher than those found in local supermarkets, as promotions are mostly absent – the current customer proposition focus is on convenience.
The differences between the Seattle and LA models (different membership and delivery pricing models and different assortment depth, to name a few) seem to indicate that Amazon is still trialling many elements of the business, but the rollout to additional markets suggests underlying confidence in the economics.
When Amazon decides to move from pilot to rollout, history indicates they will move very rapidly. The company has reportedly told vendors it could roll out to 40 U.S. markets by the end of 2014!
The direct impact that Amazon had on many category killers by winning market share is obvious, as is the impact on consumers’ price expectations, but one under-reported aspect of what is happening to category killers is the channel conflict competition Amazon provokes. Not only does Amazon take share, they also force category killers to shift transactions to their own websites. But those sites are not the basket-building machines that stores are. For one major category killer, the average online transaction has only a quarter of the number of items that the average in-store transaction has. So the incumbents face a conundrum – they must grow online sales, but doing so dramatically worsens their economics.
However, Amazon will never take as much share away from food retailers as it has taken from category killers. Food retailers’ natural defenses – low gross margins, focus on fresh product, “need it now” consumption patterns, the emotional aspect of personally selecting food to feed one’s family – mean the supermarket channel as a whole will not suffer the fate of Borders or even Best Buy.
The threat is not that stores will become obsolete; such notions are alarmist and naïve. But AmazonFresh can force dramatic change in the shape of the food retail industry with even modest market share. It doesn’t take complicated analysis to prove this. The industry overall runs with about a 2% bottom line and a 20% volume variable margin. This means
a 10% sales loss would wipe out the entire industry’s profit. Any experienced food retail executive knows that most chains have a “mushy middle” of stores that generate reasonable operating income with current sales volumes, but would quickly tip into negative store profit with a modest reduction in volume. We don’t know what Amazon’s ultimate ambitions in the food space are, but if they achieve even a 5% volume share it would force significant changes. Current players would have to either raise prices – kicking off the vicious cycle of volume loss, causing deleveraged fixed costs, leading to even more price rises – or close stores to bring costs into line. A 5% volume loss to AmazonFresh would result in 10-20% reduction in store count, because not all the volume from closed stores will be clawed back by surviving stores: as supermarkets become relatively less convenient, some of the volume would go to specialists (clubs, hard discounters, premium players) and online channels. It’s too early to know the full extent of the impact, but a good guess is that around one in eight supermarkets would have to close to maintain current profitability without raising prices.
Supermarkets should not count on their ability to weather this disruption the way they weathered the last major disruption: the Walmart supercenter tsunami, in the case of the U.S. Then, the best grocers got better, slashed cost out of their networks, improved their capabilities, and prospered at the expense of weaker competitors who couldn’t adapt fast enough. They had time to pull this off because Walmart couldn’t open a thousand supercenters overnight. But this time, the starting point is much, much more efficient – there will be a lot less “fat” to cut to preserve profitability in the face of falling volume – and the weaker players that were the victims last time are already gone. Most significantly, the rate of change in the competitive landscape will not be constrained by the process of opening new stores. Amazon only has to set up distribution centers and networks. It already has a strong consumer brand. This disruption could happen much faster than anything the industry has seen before.

WHAT SHOULD FOOD RETAILERS BE DOING? AT LEAST THREE THINGS:
Build a multi-channel offering. Of course, grocers must develop their own answer to online and mobile shopping. And it is better to cannibalize one’s own in-store sales than to surrender them to the competition. That said, it is very tricky to make the economics of these models work, so great care must be taken to manage the bottom line as online and mobile sales ramp up.
Get seriously good at fresh. The fresh categories represent a cushion around the rest of the customer offer. If customers believe they can’t get the same quality, freshness and selection online as they would in a store, it will be a formidable barrier to switching to on-line purchasing. So far AmazonFresh’s fresh product offering is highly variable (see Exhibit 1) but it stands to reason that they will get better with experience. And they have a built-in freshness advantage – as do all online grocers – because product take less time to go from the distribution center to the customer’s home. Most U.S. retailers are nowhere near where they could be, and the same is true in many other geographies. Getting good enough at fresh to fend off online competition means re-thinking the supply chain, store practices and merchandising standards. It means breaking the usual trade-off between availability and shrink, shifting the efficient frontier through better capabilities and greater accountability.
Prepare for a world with fewer stores. Possibly a lot fewer. Even an excellent multichannel platform and a rejuvenated fresh offer will not be nearly enough. We believe food retailers should be planning now for a world with far fewer stores. If, say, 15% of the square footage is going to have to close down, survival will depend on making sure the competition bears more than their fair share of the pain. So grocers’ competitive strategy should be focused on ensuring they get to keep more of their stores than the competition does, and being prepared to pounce when weakened competitors begin to wobble. This means understanding how to win store-by-store battles and drive maximum profit out of every square foot. To be clear, we are bullish on the supermarket industry. While the industry’s transformation will be painful for all and fatal for a few, the survivors will be better placed. Surviving stores will do much higher volume and, with higher fixed cost leverage, they could be massively more profitable. Stronger competition will force grocers to become even better operators and even more responsive to customer needs. Retailers who act fast can not only survive, but adapt their businesses to thrive in the new world.

Exhibit 1: PRELIMINARY CUSTOMER RESEARCH BY OLIVER WYMAN SHOWS a wide range of customer perceptions of the quality of AmazonFresh products
“The apples were the kind I would have hunted for and maybe not found. They looked great and the taste was fresh and sweet, the texture crisp which is exactly what I like. They were delicious.”
“The sell by date on the frozen beef says July 2013 [delivered in September 2013]. Granted it was frozen, this makes me believe it’s not fresh beef and I’m a little disappointed by that.”
“Some of the berries were very soft and leaking all over the box.”

ABOUT OLIVER WYMAN
Oliver Wyman is a global leader in management consulting that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation.
Copyright © 2014 Oliver Wyman. All rights reserved.
FastCompany: AmazonFresh a “Trojan horse;” 20 more markets expected
Aug 11 2013, 18:15 ET
In a cover story on Jeff Bezos and Amazon (AMZN), FastCompany’s J.J. McCorvey observes the company’s new AmazonFresh grocery service (offered via its $299/year Prime Fresh free shipping plan) is a “Trojan horse” meant to give Amazon’s broader same-day delivery efforts needed scale.
Amazon is also hoping its same-day infrastructure (replete with Amazon trucks) will increase its appeal to 3rd-party sellers (now responsible for 40% of unit sales) by lowering delivery times. Merchants already cite access to Prime as a reason for outsourcing fulfillment to Amazon (and giving a ~20% cut).
EBAY could prove a formidable same-day rival. Instead of building its own soup-to-nuts infrastructure, eBay is relying on dozens of offline retailers (inc. major national chains) to help handle fulfillment. Google is also dipping its toes into same-day.
Currently available in L.A. and Seattle, AmazonFresh is expected to expand to 20 more markets, including some international ones. SunTrust recently predicted an NYC launch will happen in 2014.
Also mentioned by McCorvey: Amazon is now able to ship items less than 2.5 hours after an order is placed; and wants to further lower than number; Prime now covers 15M+ items (up from 1M in ’05); and Amazon is still “evaluating” how to use Kiva’s robots.
Amazon buying Twitch for $970M in cash

FAST COMPANY
4.2K SHARES
AMAZONFRESH IS JEFF BEZOS’ LAST MILE QUEST FOR TOTAL RETAIL DOMINATION
AMAZON UPENDED RETAIL, BUT CEO JEFF BEZOS — WHO JUST BOUGHT THE WASHINGTON POST FOR $250 MILLION — INSISTS IT’S STILL “DAY ONE.” WHAT COMES NEXT? A RELENTLESS PURSUIT OF CHEAPER GOODS AND FASTER SHIPPING. THE COMPETITION IS ALREADY GASPING FOR BREATH.
BY J.J. MCCORVEY
The first thing you notice about Jeff Bezos is how he strides into a room.
A surprisingly diminutive figure, clad in blue jeans and a blue pinstripe button-down, Bezos flings open the door with an audible whoosh and instantly commands the space with his explosive voice, boisterous manner, and a look of total confidence. “How are you?” he booms, in a way that makes it sound like both a question and a high-decibel announcement.

MORE ON AMAZON
• Amazon CEO Jeff Bezos Agrees To Buy The Washington Post For $250 Million
• Need A Job? Amazon Is Hiring 5,000 People
• Think Your Office Is Soulless? Check Out This Amazon Fulfillment Center
Each of the dozen buildings on Amazon’s Seattle campus is named for a milestone in the company’s history–Wainwright, for instance, honors its first customer. Bezos and I meet in a six-floor structure known as Day One North. The name means far more than the fact that Amazon, like every company in the universe, opened on a certain date (in this case, it’s July 16, 1995). No, Day One is a central motivating idea for Bezos, who has been reminding the public since his first letter to shareholders in 1997 that we are only at Day One in the development of both the Internet and his ambitious retail enterprise. In one recent update for shareholders he went so far as to assert, with typical I-know-something-you-don’t flair, that “the alarm clock hasn’t even gone off yet.” So I ask Bezos: “What exactly does the rest of day one look like?” He pauses to think, then exclaims, “We’re still asleep at that!”
He’s a liar.
Amazon is a company that is anything but asleep. Amazon, in fact, is an eyes-wide-open army fighting–and winning–a battle that no one can map as well as its general. Yes, it is still the ruthless king of books–especially after Apple’s recent loss in a book price-fixing suit. But nearly two decades after its real day one, the e-commerce giant has evolved light-years from being just a book peddler. More than 209 million active customers rely on Amazon for everything from flat-panel TVs to dog food. Over the past five years, the retailer has snatched up its most sophisticated competition–shoe seller Zappos and Quidsi, parent of such sites as Diapers.com, Soap.com, Wag.com, and BeautyBar.com. It has purchased the robot maker Kiva Systems, because robots accelerate the speed at which Amazon can assemble customer orders, sometimes getting it down to 20 minutes from click to ship. Annual sales have quadrupled over the same period to a whopping $61 billion. Along the way, incidentally, Amazon also became the world’s most trusted company. Consumers voted it so in a recent Harris Poll, usurping the spot formerly held by Apple.
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Amazon has done a lot more than become a stellar retailer. It has reinvented, disrupted, redefined, and renovated the global marketplace. Last year, e-commerce sales around the world surpassed $1 trillion for the first time; Amazon accounted for more than 5% of that volume. This seemingly inevitable shift has claimed plenty of victims, with more to come. Big-box retailers like Circuit City and Best Buy bore the brunt of Amazon’s digital assault, while shopping-mall mainstays such as Sears and JCPenney have also seen sales tank. Malls in general, which once seemed to offer some shelter from the online pummeling, have been hollowed out. By Green Street Advisors’ estimate, 10% of the country’s large malls will close in the next decade. It has become painfully clear that the chance to sift through bins of sweaters simply isn’t enough of a draw for shoppers anymore. “It has been this way in retail forever,” says Kevin Sterneckert, a research VP at Gartner who focuses on shopping trends, and who lays out a strategy that should blow nobody’s mind: “If you don’t innovate and address who your customers are, you become irrelevant.” And now that means fending off threats from every phone, tablet, and laptop on the planet.
Amazon’s increasing dominance is now less about what it sells than how it sells. And that portends a second wave of change that will further devastate competitors and transform retail again. It’s not just “1-Click Ordering” on Amazon’s mobile app, which is tailor-made for impulse buying. It’s not just the company’s “Subscribe & Save” feature, which lets customers schedule regular replenishments of essentials like toilet paper and deodorant. It’s not just Amazon’s “Lockers” program, in which huge metal cabinets are installed at 7-Elevens and Staples in select cities, letting customers securely pick up packages at their convenience instead of risking missed (or stolen) deliveries.

“AMAZONFRESH IS REALLY A TROJAN HORSE. IT’S NOT ABOUT WINNING IN GROCERY SERVICES. IT’S ABOUT DOMINATING THE MARKET IN SAME-DAY DELIVERIES. ”
No, it’s all this, plus something more primal: speed. Bezos has turned Amazon into an unprecedented speed demon that can give you anything you want. Right. Now. To best understand Amazon’s aggressive game plan–and its true ambitions–you need to begin with Amazon Prime, the company’s $79-per-year, second-day delivery program. “I think Amazon Prime is the best bargain in the history of shopping,” Bezos tells me, noting that the service now includes free shipping on more than 15 million items, up from the 1 million it launched with in 2005. Prime members also gain access to more than 40,000 streaming Instant Video programs and 300,000 free books in the Kindle Owners’ Lending Library. As annoying as this might be to Netflix, it is not intended primarily as an assault on that business. Rather, Bezos is willing to lose money on shipping and services in exchange for loyalty. Those 10 million Prime members (up from 5 million two years ago, according to Morningstar) are practically addicted to using Amazon. The average Prime member spends an astounding $1,224 a year on Amazon, which is $700 more than a regular user. Members’ purchases and membership fees make up more than a third of Amazon’s U.S. profit. And memberships are projected to rise 150%, to 25 million, by 2017.
Nadia Shouraboura of Hointer, a new store that represents how retail must adapt in the Age of Amazon

Robbie Schwietzer, VP of Prime, is more candid than his boss when explaining Prime’s true purpose: “Once you become a Prime member, your human nature takes over. You want to leverage your $79 as much as possible,” he says. “Not only do you buy more, but you buy in a broader set of categories. You discover all the selections we have that you otherwise wouldn’t have thought to look to Amazon for.” And what you buy at Amazon you won’t buy from your local retailer.
Prime is phase one in a three-tiered scheme that also involves expanding Amazon’s local fulfillment capabilities and a nascent program called AmazonFresh. Together, these pillars will remake consumers’ expectations about retail. Bezos seems to relish the coming changes. “In the old world, you could make a living by hoping that your customer didn’t know whether your price was actually competitive. That’s a very”–Bezos pauses for a second to rummage for the least insulting word–“tenuous strategy in the new world. [Now] you can’t convince people you have the low price; you actually have to have the low price. You can’t persuade people that your delivery speeds are fast; you actually have to have fast delivery speeds!” With that last challenge, he erupts in a thunderous laugh, throwing his cleanly depilated head so far back that you can see the dark fillings on his upper molars. He really does seem to know something the rest of us don’t. We’re still asleep, he says? The alarm clock at Amazon went off hours ago. Whether the rest of the retail world has woken up yet is another question.
Amazon’s 1-million-square-foot Phoenix fulfillment center produces a steady and syncopated rhythm. It is the turn of mechanical conveyor belts, the thud of boxes hitting metal, the beeping of forklifts moving to and fro, and the hum of more than 100 industrial-size air conditioners whirring away. This is the sound of speed–a sonic representation of what it takes to serve millions of customers scattered across the globe.

In centers like this one, of which there are 89 globally (with more to come), Amazon has built the complex machinery to make sure a product will ship out in less than 2.5 hours from the time a customer clicks place your order.
From that click, a set of algorithms calculates the customer’s location, desired shipping speed, and product availability; it then dispatches the purchase request to “pickers” on duty at the nearest fulfillment center. The system directs the new order to the picker who is closest on the floor to that product, popping up with a bleep on the picker’s handheld scanner gun. These men and women roam the sea of product shelves with carts, guided by Amazon’s steady hand to the precise location of the product on the color-coded shelves. The picker gathers the item and puts it into a bin with other customer orders. And from there, the item zooms off on a conveyor belt to a boxing station, where a computer instructs a worker on what size box to grab and what items belong in that box. After the packer completes an order, the word success lights up in big green letters on a nearby computer screen. Then the package goes back on a conveyor, where the fastest delivery method is calculated by scanning the box, which is then kicked down a winding chute to the appropriate truck.
AMAZON-PROOF RETAIL
How one store merges digital and physical
If anyone can design a brick-and-mortar store for an e-commerce world, it should be Nadia Shouraboura. She used to be Amazon’s VP of global supply chain and fulfillment technology and has since created Hointer, a fully automated store run on software algorithms and machinery. She calls it a “microwarehouse” that marries digital’s instant gratification with in-store benefits. “In apparel, this will win,” she predicts. It works like this:
STEP 1. SEARCH
A customer enters the spare store, where there’s only one of every product in view. She pulls up the Hointer app, scans the QR code on a pair of jeans she likes, and enters her size.
STEP 2. DELIVER
Within 30 seconds of scanning the code, a pair of jeans in her size travels through a chute and lands in her dressing room. She can scan as many items as she likes.
STEP 3. REFINE
Inside the dressing room, she tries on the jeans, but they’re too baggy. So she chucks them down another chute and selects a smaller size from the app.
STEP 4. PURCHASE
The jeans fit! She pays on her phone or swipes her card at a kiosk, and leaves the store with her purchase. No sales clerk necessary.
The process is efficient, but still lower tech than it could be. Although Amazon shelled out $775 million last year for those orange Kiva robots, it says it’s still “evaluating” how to deploy the bots, and they’re nowhere to be seen here. “Fulfillment by Amazon” is still a very human endeavor–and the company’s creativity thrives within that limitation. A team at the Phoenix center is constantly thinking of ways to chip away at the 2.5-hour processing time. For instance, when products arrive from Amazon’s vendors and the 2 million third-party merchants who sell their goods on the site, workers now scan them into Amazon’s inventory system (again, with a handheld gun) instead of entering the details manually. Also, products have been stowed on shelves in what otherwise might appear to be a random way–for example, a single stuffed teddy bear might be next to a college biology book–because it reduces the potential distance a worker must trek between popular products that might be ordered together. Small tweaks like these have an impact: In the past two years, Amazon has reduced the time it took to move a product by a quarter. During the past holiday season, the company processed 306 items per second worldwide.
These centers aren’t just about warehouse speed, though: They’re also about proximity. Over the past several years, Bezos has poured billions into building them in areas closer and closer to customers. The Phoenix warehouse, one of four in the region, serves a metro area of nearly 4 million. Robbinsville, New Jersey, is roughly one hour from 8 million New Yorkers. Patterson, California, is an hour and a half from 7 million people living in the San Francisco Bay Area. Three locations in Texas–Coppell, Haslet, and Schertz–will serve not only the nearly 9 million citizens of the Dallas and San Antonio metro areas but also the other 17 million or so customers in the state (and possibly neighboring states too) who live only a few hundred miles away.
“What you see happening,” Bezos explains, “is that we can have inventory geographically near major urban populations. If we can be smart enough–and when I say ‘smart enough,’ I mean have the right technology, the right software systems, machine-learning tools–to position inventory in all the right places, over time, your items never get on an airplane. It’s lower cost, less fuel burned, and faster delivery.”
The holy grail of shipping–same-day delivery–is tantalizingly within reach. Amazon already offers that service in select cities, what it calls “local express” delivery, but the big trick is to do it nationally. And the crucial element of this ambitious plan is revealed by something wonkier than a bunch of buildings. It is something only an accountant could see coming: a cunning shift in tax strategy.
“”IN THE NEW DIGITAL WORLD,” SAYS BEZOS, “YOU CAN’T CONVINCE PEOPLE YOU HAVE THE LOW PRICE; YOU ACTUALLY HAVE TO HAVE THE LOW PRICE.””
If you were a competitor who knew what to listen for, you’d practically hear the Jaws theme every time Bezos said the word taxes. For years, Amazon fervently avoided establishing what is called a “tax nexus”–that is, a large-enough physical presence–in states that could potentially force it to collect sales tax from its customers, something brick-and-mortar and mom-and-pop stores had long argued would finally remove Amazon’s unfair pricing advantage. In states that dared to challenge Amazon, the company would quickly yank operations. The scrutiny even extended to its sale of products by other merchants. “We had to be very careful, even with the third-party business, about not incurring tax-nexus stuff,” recalls John Rossman, a former Amazon executive and current managing director at Alvarez and Marsal, a Seattle-based consulting firm.
But Amazon has since changed its mind. It determined that the benefits of more fulfillment centers–and all the speed they’ll provide–will outweigh the tax cost they’ll incur. So it began negotiating with states for tax incentives. South Carolina agreed to let the company slide without collecting sales tax until 2016, in exchange for bringing 2,000 jobs to the state. In California, Amazon was given a year to start collecting taxes in exchange for building three new warehouses. And at the end of 2011, Amazon even threw its support behind a federal bill that would mandate all online retailers with sales of more than $1 million to collect tax in states in which they sold to customers. In 2012 alone, Amazon spent $2.5 million lobbying for issues that included what’s known as the Marketplace Fairness Act–the same law, essentially, it had once moved heaven and earth to eradicate. The bill recently cleared the U.S. Senate and awaits passage in the House.
“The general perception is companies thinking, Oh, great, finally a level playing field,” Rossman says. “But other retailers are going to regret the day. Sales tax was one of the few things impeding Amazon from expanding. Now it’s like wherever Amazon wants to be, whatever Amazon wants to do, they are going to do it.”
There’s yet another weapon in Amazon’s offensive, and it’s ready for rollout. It’s called AmazonFresh, a grocery delivery service that has long been available only in Seattle. The site has a selection of 100,000 items, and from my hotel room in that city on a recent Saturday at 11 a.m., I gave it a try. I clicked on chips, bananas, apples, yogurt, and a case of bottled water–along with a DVD of Silver Linings Playbook and a Moleskine reporter’s notebook. After checking out and paying the $10 delivery fee, I requested my goods to arrive during the 7 p.m. to 8 p.m window. At 7:15 that evening, De, my AmazonFresh delivery woman, showed up in the lobby. She helped carry my bags up the elevator and to my hotel room, and tried several times to refuse a $5 tip for the trouble I put her through in the name of research. It was simple, easy–and for Amazon competitors, very threatening.
De and the Kiva robots are central to what Amazon sees as the future of shopping: whatever you want, whenever you want it, wherever you want it, as fast as you demand it. AmazonFresh is expected to expand soon to 20 more urban markets–including some outside America. Los Angeles became the second AmazonFresh market, this past June, and customers there were offered something the folks in Seattle must wish they got: a free trial of Prime Fresh, the upgrade version of Amazon Prime, which provides free shipping of products and free delivery of groceries for orders over $35. Subscribers will pay an annual fee of $299. Considering that grocery delivery otherwise costs between $8 and $10 each time (depending on order size), the subscription covers itself after about 30 deliveries–which busy families will quickly exceed.
Bezos, in his cagey, friendly way, seems more excited about my Fresh experience than he is about describing Fresh’s future. He seems almost surprised that the service worked so well at a hotel, given that it was designed for home delivery. “Thank you!” he shouts. After peppering me with questions on how, precisely, the delivery went down, he finally gets around to addressing the service’s business purpose.
“WE WON’T INVEST IN A COMPANY UNLESS THEY CAN TELL US WHY THEY WON’T GET STEAMROLLED BY AMAZON.”
“We’d been doing a very efficient job with our current distribution model for a wide variety of things,” Bezos says. “Diapers? Fine, no problem. Even Cheerios. But there are a bunch of products that you can’t just wrap up in a cardboard box and ship ’em. It doesn’t work for milk. It doesn’t work for hamburger.” So he developed a service that would work–not because he suddenly wanted to become your full-service grocer but because of how often people buy food.
AmazonFresh is actually a Trojan horse, a service designed for a much greater purpose. “It was articulated [in the initial, internal pitch to Bezos] that this would work with the broader rollout of same-day delivery,” says Tom Furphy, a former Amazon executive who launched Fresh in 2007 and ran it until 2009. Creating a same-day delivery service poses tremendous logistical and economic hurdles. It’s the so-called last-mile problem–you can ship trucks’ worth of packages from a warehouse easily enough, but getting an individual package to wind its way through a single neighborhood and arrive at a single consumer’s door isn’t easy. The volume of freight and frequency of delivery must outweigh the costs of fuel and time, or else this last mile is wildly expensive. You can’t hire a battalion of Des unless they earn their keep. So by expanding grocery delivery, Amazon hopes to transform monthly customers to weekly–or even thrice-weekly–customers. And that, in turn, will produce the kind of order volume that makes same-day delivery worth investing in. “Think of the synergy between Prime, same-day delivery, and Fresh,” says Furphy. “When all of those things start working in concert, it can be a very beautiful thing.”
AmazonFresh is arguably the last link in Bezos’s big plan: to make Amazon the dominant servicer–not just seller–of the entire retail experience. The difference is crucial. Third-party sellers, retailers large and small, now account for 40% of Amazon’s product sales. Amazon generally gets up to a 20% slice of each transaction. Those sellers are also highly incentivized to use Fulfillment by Amazon (known as FBA). Rather than shipping their products themselves after a sale is made on the Amazon site, these retailers let Amazon do the heavy lifting, picking and packing at places like the Phoenix center. For the sellers, an FBA agreement grants them access to Prime shipping speeds, which can help them win new customers and can allow them to sell at slightly higher prices. For Amazon, FBA increases sales, profits, and the likelihood that any shopper can find any item on its website.
“NOW YOU HAVE SMART BRICK-AND-MORTAR STORES SAYING, ‘WHY ISN’T OUR EXPERIENCE MORE INTUITIVE, AS IT IS ON THE WEB?’”
The burgeoning AmazonFresh transportation network will help expand these numbers. In Los Angeles and Seattle, a fleet of Fresh trucks delivers everything from full-course meals to chocolate from local merchants. The bright green branded trucks–with polite drivers in branded uniforms–let Amazon personify its brand, giving it the same kind of trustworthy familiarity that fueled the rise of UPS in the 1930s. “If you have all kinds of fly-by-night operations coming to your door, people don’t like that,” says Yossi Sheffi, professor and director of the MIT Center for Transportation and Logistics. “It’s different with someone in a U.S. Postal Service or FedEx uniform. Those brands inspire confidence.”
As Amazon evolves into a same-day delivery service, its active transportation fleet could become yet another competitive advantage. By supplementing its long-term relationships with UPS and FedEx with its own Fresh trucks, Amazon may well be able to deliver faster than retailers that depend entirely on outside services. “Pretty soon, if you’re a retailer with your online business, you’re going to be faced with a choice,” says Brian Walker, a former analyst at Forrester Research who is now with Hybris, a provider of e-commerce software. “You’re not going to be able to match Amazon, so you’re going to have to consider partnering with them and leveraging their network.”
This shift could even turn Amazon into a competitor to UPS and FedEx, the long-standing duopoly of next-day U.S. shipping. “If Amazon could do it at enough scale, they could offer shipping at a great value and still eke out some margin,” says Walker. “In classic Amazon fashion, they could leverage the infrastructure they’ve built for themselves, take a disruptive approach to the pricing, and run it as an efficiency play.”
Amazon has been down this road before. Its Web Services began as an efficient, reliable back end to handle its own web operations–then became so adept that it now provides digital services for an enormous range of customers, including Netflix and, reportedly, Apple. It’s not impossible to imagine Amazon doing the same with shipping. Last year, the company cut its shipping costs as a percentage of sales from 5.4% to 4.5%. As it builds more distribution centers, installs more lockers, and builds out its fleet, Amazon is likely to drive those efficiency costs down even further.
So is Amazon Freight Services Bezos’s next mission? When I ask, the laugh lines vanish from his face as if someone flipped a switch on his back. He contends that same-day delivery is too expensive outside of urban markets and that it only makes sense for Amazon to deliver its own products within the Fresh program. In China, he explains, Amazon does in fact deliver products via many couriers and bicycle messengers. “But in a country like the United States,” he says, “we have such a sophisticated last-mile delivery system that it makes more sense for Amazon to use that system to reach its customers in a rapid and accurate way.” When I ask whether he would consider, say, buying UPS, with its 90,000 trucks–or even more radically, purchasing the foundering USPS, with its 213,000 vehicles running daily through America’s cities and towns–Bezos scoffs. But he won’t precisely say no.

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• Condoms, iPads, And Toilet Paper: A Day In The Life Of An Ebay Now Deliveryman
Rivals aren’t waiting for an answer. EBay has launched eBay Now, a $5 service that uses its own branded couriers in New York, San Francisco, and San Jose, to fetch products from local retail stores like Best Buy and Toys “R” Us and deliver them to customers within an hour. Google, fully aware that Amazon’s market share in product search is substantial (now 30% to Google’s 13%), has launched a pilot service called Google Shopping Express, which partners with courier companies. Walmart–which has booted all Kindles from its stores–started testing same-day delivery in select cities during the last holiday season, shipping items directly from its stores. (Joel Anderson, chief executive of Walmart.com, even suggested paying in-store shoppers to deliver online orders to other customers the same day. Come for a handsaw, leave with a job!)
These are the sort of ideas that retailers–both e-commerce and physical, large and small–will have to consider as Amazon expands. Guys like Jeff Jordan, partner at well-known venture firm Andreessen Horowitz, will make sure of it. His firm follows and invests in direct-to-consumer businesses. “We won’t invest in a company,” he says, “unless they can tell us why they won’t get steamrolled by Amazon.”
Given the astounding growth of Amazon, and the seemingly infinite ways it has defied the critics, Bezos may have proved himself the best CEO in the world at taking the long view. But he doesn’t like talking about it. “Did you bring the crystal ball? I left mine at home today,” he quips. He does, however, like discussing what the future might bring for his customers. In fact, he likes talking about his customer so much that the word can seem like a conversational tic; he used it 40 times, by my count, in just one interview. “It’s impossible to imagine that 10 years from now, I could interview an Amazon customer and they would tell me, ‘Yeah, I really love Amazon. I just wish your prices were a little higher,’” he says. “Or, ‘I just wish you’d deliver a little more slowly.’” In Bezos’s world, the goal of the coming decade is a lot like the goal of the past two: Be cheap. Be fast. That’s how you win.
There is, naturally, no guarantee that Bezos will simply win and win and win. The bigger Amazon gets, the greater the number and variety of stakeholders required to make the Amazon machine hum. Many seem to be getting increasingly frustrated. Consider Amazon’s third-party sellers–that group making up 40% of the company’s product sales. Earlier this year, Amazon issued a series of fee hikes for use of its fulfillment services, ranging from as low as 5 cents per smallish unit to as much as $100 for heavier or awkwardly shaped items (like a whiteboard, say, or roll-away bed). Many sellers took to Amazon’s forums to complain, and others threatened to go to eBay, which mostly leaves fulfillment to its sellers. “I think Amazon is a necessary evil,” says Louisa Eyler, distributor for Lock Laces, a shoelace product that sells as many as 3,000 units per week on Amazon. After the price hike, Eyler says her total fees for the $7.99 item went from $2.37 to $3.62. She says Amazon now makes more per unit than she does.
Or consider the frustrations of Amazon employees, who are striking at two of its eight German facilities in an effort to wrest higher wages and overtime pay. At the height of the conflict, on June 17, 1,300 workers walked off the job. (It is one of Amazon’s largest walk-offs in its biggest foreign market, and could result in shipping delays.) Meanwhile, Amazon workers in the U.S. have filed a lawsuit claiming that they’ve been subject to excessive security checks–to search for pilfered items–at warehouses. The suit alleges their wait could last as long as 25 minutes, an inconvenience Amazon would never subject its customers to. “It means there’s a broken process somewhere,” says Annette Gleneicki, an executive at Confirmit, a software company that helps businesses capture customer and employee feedback. “[Bezos] clearly inspires passion in his employees, but that’s only sustainable for so long.”
The company could be vulnerable on other fronts as well. Target and Walgreens have “geo-fenced” their stores so their mobile apps can guide customers directly to the products they desire. Walmart and Macy’s have begun making their stores do double-duty, both as a place to shop and a warehouse from which to ship products. (The strategy seems to be paying off for Macy’s, which recently reported a jump in first-quarter profit and is now fulfilling 10% of its online purchases from its stores.) They’re proving that retail won’t go away–it’ll learn and adapt. “Now you have smart brick-and-mortar stores saying, Why isn’t our experience more intuitive, as it is on the web?” says Doug Stephens, author of The Retail Revival: Re-Imagining Business for the New Age of Consumerism. “We should know a consumer when they walk in, and what they bought before, in the same way as Amazon’s recommendation engine.”
Bezos won’t admit to any deep concern. While Amazon’s paper-thin profits continue to perplex observers (the company netted only $82 million in the first quarter of 2013), the three primary weapons in its retail takeover–fulfillment centers, Amazon Prime, and now AmazonFresh–are coming to maturity. If the next year tells us anything about Amazon’s future, it should reveal whether Bezos’s decision to plow billions back into these operations will give the company an end-to-end service advantage that might be nearly impossible for its competitors to overcome.
The sun seems to be setting on Bezos’s big Day One. Before we part ways in Seattle, I ask him what we can expect to see on Day Two. “Day Two will be when the rate of change slows,” he replies. “But there’s still so much you can do with technology to improve the customer experience. And that’s the sense in which I believe it’s still Day One, and that it’s early in the day. If anything, the rate of change is accelerating.”
Of course, Bezos is the accelerator.

Amazon Buys Twitch For $970 Million In Cash
EUGENE KIM
AUG. 25, 2014, 4:03 PM 13,994 21
Patrick T. Fallon/Getty Images
Twitch CEO Emmett Shear.
Amazon said on Monday it would pay $970 million in cash for Twitch, a live video-game-streaming site with more than 55 million users that’s like YouTube for video games.
As of July, Twitch had over 15 billion minutes of content, and users were spending more than 100 minutes a day on the site, on average. Twitch users can host live streams of their gaming sessions and broadcast them to the world. They can also chop up their sessions into segments for streaming later.
It’s also a resource for gamers who like to show off their unique skills. For example, there’s an entire community on Twitch dedicated to doing weird stuff like beating Zelda games in under 20 minutes or playing massively collaborative games of Pokemon.
Twitch/Screenshot
A Twitch streaming session.
Twitch is a huge part of the internet, and it accounts for nearly 2% of all traffic in the U.S. during peak hours, according to a report by The Wall Street Journal. Only Netflix, Google, and Apple account for more traffic. In that respect, Twitch even streams more video than Hulu.
Twitch also accounts for 40% of all live-streamed internet content, according to Business Insider Intelligence:
BI Intelligence
What’s really impressive is that Twitch was able to become so big after just three years.
You can see Amazon’s purchase of Twitch as a play to take over the future of TV. More and more content is being streamed online, and more and more hours of video watching are being done on sites like YouTube, Netflix, and Hulu. Amazon has its own streaming video service called Amazon Instant that comes with Amazon Prime memberships. Amazon Instant includes thousands of streaming movies and TV shows, including original shows like “Alpha House.”
Amazon
Alpha House is an original Amazon show.
Earlier Monday, multiple reports indicated Amazon was in late-stage talks to acquire Twitch. The news came as a big surprise because just last month it was reported that Google had agreed to acquire Twitch for about $1 billion. That deal, however, was never officially confirmed.
The Google-Twitch deal felt like a natural fit, since it would’ve been a good way for YouTube to expand its video offerings. Yahoo also tried to buy Twitch for $970 million, but Amazon swooped in and got it instead.
It’s unclear what had caused the Google-Twitch deal to fall through, but one possible reason is over antitrust issues. Since Google already owns YouTube, the world’s largest video streaming site, acquiring another massive video streaming site like Twitch could raise antitrust issues. According to Forbes, the two sides couldn’t agree on the potential break up fee.
Here’s the official announcement from Amazon:
Amazon.com, Inc. (NASDAQ: AMZN) today announced that it has reached an agreement to acquire Twitch Interactive, Inc., the leading live video platform for gamers. In July, more than 55 million unique visitors viewed more than 15 billion minutes of content on Twitch produced by more than 1 million broadcasters, including individual gamers, pro players, publishers, developers, media outlets, conventions and stadium-filling esports organizations.
“Broadcasting and watching gameplay is a global phenomenon and Twitch has built a platform that brings together tens of millions of people who watch billions of minutes of games each month – from The International, to breaking the world record for Mario, to gaming conferences like E3. And, amazingly, Twitch is only three years old,” said Jeff Bezos, founder and CEO of Amazon.com. “Like Twitch, we obsess over customers and like to think differently, and we look forward to learning from them and helping them move even faster to build new services for the gaming community.”
“Amazon and Twitch optimize for our customers first and are both believers in the future of gaming,” said Twitch CEO Emmett Shear. “Being part of Amazon will let us do even more for our community. We will be able to create tools and services faster than we could have independently. This change will mean great things for our community, and will let us bring Twitch to even more people around the world.”
Twitch launched in June 2011 to focus exclusively on live video for gamers. Under the terms of the agreement, which has been approved by Twitch’s shareholders, Amazon will acquire all of the outstanding shares of Twitch for approximately $970 million in cash, as adjusted for the assumption of options and other items. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2014.
Here’s a letter from Twitch’s CEO:
Dear Twitch Community,
It’s almost unbelievable that slightly more than 3 years ago, Twitch didn’t exist. The moment we launched, we knew we had stumbled across something special. But what followed surprised us as much as anyone else, and the impact it’s had on both the community and us has been truly profound. Your talent, your passion, your dedication to gaming, your memes, your brilliance – these have made Twitch what it is today. Every day, we strive to live up to the standard set by you, the community. We want to create the very best place to share your gaming and life online, and that mission continues to guide us. Together with you, we’ve found new ways of connecting developers and publishers with their fans. We’ve created a whole new kind of career that lets people make a living sharing their love of games. We’ve brought billions of hours of entertainment, laughter, joy and the occasional ragequit. I think we can all call that a pretty good start. Today, I’m pleased to announce we’ve been acquired by Amazon. We chose Amazon because they believe in our community, they share our values and long-term vision, and they want to help us get there faster. We’re keeping most everything the same: our office, our employees, our brand, and most importantly our independence. But with Amazon’s support we’ll have the resources to bring you an even better Twitch. I personally want to thank you, each and every member of the Twitch community, for what you’ve created. Thank you for putting your faith in us. Thank you for sticking with us through growing pains and stumbles. Thank you for bringing your very best to us and sharing it with the world. Thank you, from a group of gamers who never dreamed they’d get to help shape the face of the industry that we love so much. It’s dangerous to go alone. On behalf of myself and everyone else at Twitch, thank you for coming with us. Emmett Shear, CEO
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
SEE ALSO: Here’s Why Amazon Just Paid Nearly $1 Billion For A Site Where You Can Watch People Play Video Games
Read more: http://www.businessinsider.com/amazon-buys-twitch-2014-8#ixzz3BSBNYa53
Amazon Is Turning Into Google
STEVE KOVACH
AUG. 25, 2014, 7:15 PM 1,038 3
Amazon Inc.
Amazon CEO Jeff Bezos.
Tell me which company this sounds like:
A company that…
• Has its own mobile operating system for tablets and smartphones.
• Has its own app store.
• Sells digital music, books, movies, and TV shows.
• Will soon have an online ad network.
• Created a way to accept payments with a smartphone.
• Owns the servers that act as the backbone for several major apps and startups and even parts of the CIA.
• Is experimenting with drones.
It’s not Google. It’s Amazon.
But just like Google has expanded beyond search into everything from finding ways to cheat death to making cars that can drive themselves, Amazon has been increasingly expanding beyond its core e-commerce business.
And in recent months, that only seems to be speeding up.
Amazon’s $970 million purchase of Twitch, a site that lets you watch people play video games via a live stream, is its latest push into original video content and a move to transform itself into part media company. It’s a longer-term bet that the trend of watching stuff online versus cable will continue.
Add that on top of the stuff listed above, and Amazon suddenly sounds less like an online store for buying books and gifts and more like a company trying to insert itself into everything you do online. It sounds very Google-y.
Plus …
There’s experimentation with same-day delivery, grocery delivery, and point of sale systems for brick-and-mortar retailers. Those are all things Google is working on or has at least experimented with.
The only difference, of course, is that Google is wildly profitable while Amazon continues to post losses each quarter. (Next quarter could be a doozy. Amazon said to expect at least a $410 million operating loss.)
But it’s also a changing company, one that’s no longly simply “the everything store,” but an entity creeping its way into everything we do from shop to play games to run our small businesses.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
SEE ALSO: 9 impressive stats about Twitch
Read more: http://www.businessinsider.com/amazon-is-google-2014-8#ixzz3BSE4Hglt
Bezos Confirms

AmazonFresh Expansion Plans
, Says Drones Are for Real
April 10, 2014, 9:15 AM PDT
By Jason Del Rey
Grocery delivery fans outside of Seattle and California, rejoice: Amazon plans to expand its AmazonFresh offering beyond its current three markets, CEO Jeff Bezos confirmed in his 2013 letter to shareholders published today.
“We’ll continue our methodical approach — measuring and refining AmazonFresh — with the goal of bringing this incredible service to more cities over time,” he said in the letter.
For five years, Fresh was only available in Seattle, before the company launched the program last year in Los Angeles and, six months later, San Francisco. Several reports over the past year have said Amazon plans to expand the delivery service into 10 to 20 more new markets this year, but this may be the first time Bezos has publicly acknowledged the expansion plans.
Through Fresh, shoppers can order deliveries of groceries and hundreds of thousands of other items, from TVs to toys, that arrive either that same day or the following morning. Industry observers believe that part of Amazon’s reason for delivering groceries is that it will create enough sales volume and delivery demand to justify delivering all other Amazon merchandise within one day.
Another highlight from the letter: Drones.
“The Prime Air team is already flight testing our 5th and 6th generation aerial vehicles,” Bezos wrote, “and we are in the design phase on generations 7 and 8.”
Is it possible that drone delivery is still a marketing stunt? Sure. If so, Bezos is sticking to the script.
More from this story


SLIDE SHOW:
Headed your way: AmazonFresh widens range of grocery deliveries
Doorstep delivery: Our reporter gives AmazonFresh grocery service a whirl
BY NANCY LUNA / STAFF WRITER
Published: June 20, 2014 Updated: June 23, 2014 11:44 a.m.
STEVEN GEORGES, CONTRIBUTING PHOTOGRAPHER
VONS VS. AMAZONFRESH
Here are a few price comparisons based on items found online this week:
1 gallon of Alta Dena fat-free milk: $5.49 Vons vs. $4.99 AmazonFresh
59-ounce jug of Simply Lemonade: $2.50 Vons vs. $2 AmazonFresh
5 ounces organic baby romaine: $3.90 O private-label Vons brand vs. $3.39 Earthbound brand at AmazonFresh
24-pack of Aquafina 16.9-ounce bottled water: $5.49 Vons vs. $4.29 AmazonFresh
Tide Free and Gentle (100 ounces): $11.99 Vons vs. $11.97 AmazonFresh
20-pack Coke Zero: $8.29 Vons vs. $6.99 AmazonFresh
Winder Farms: A Utah-based delivery service in California, Utah and Nevada. Delivers roughly 300 farm fresh items. Delivery in Orange County and parts of Los Angeles County. winderfarms.com
Good Eggs: Delivery of locally grown, sustainable goods from stores or farmers’ markets. Los Angeles County only. goodeggs.com/about/mission
Vons: Traditional market with home delivery in Orange County. shop.safeway.com
Instacart: Delivers from local stores like Whole Foods, Ralphs and Bristol Farms. Limited to a few ZIP codes in Los Angeles County. instacart.com/store/whole-foods
Deliveer: Personal shoppers deliver groceries from Whole Foods Market, Trader Joe’s, Vons and Costco in Pasadena, San Marino, South Pasadena and Altadena. Expansion to other parts of Los Angeles County coming soon. deliveer.com
As Amazon’s fledgling grocery service in Southern California widens its reach, some boutique food suppliers say the experiment has proven to be a boon for business.
Huntington Meats saw sales go from single-digit growth to double digits after the first month of partnering with AmazonFresh, a doorstep food service that launched last summer in Los Angeles.
The 30-year-old butcher shop, known for its top-grade meats and wild game, partnered with AmazonFresh last summer. Co-owner Jim Cascone said his meat market sells the “whole store,” or 175 items, through the online site, from free-range chickens to ground elk.
Demand for his specialty goods continues to soar and was boosted in recent weeks when the company expanded its service to most of Orange County.
“We’re very pleased,” said Cascone. “We’re definitely getting a lot of business out of it.”
For other Amazon partners, the impact has been much less dramatic. Greg Daniels, executive chef-partner at Haven Collective, has been working with AmazonFresh the last six months. The company’s Provisions Market bottle and cheese shop in Old Towne Orange offers Amazon shoppers specialty cheeses, cured meats, chocolate and a wide selection of craft beer.
“Cheese is popular, and beer not too much yet,” said Daniels. “It’s definitely brand exposure more than money.”
Amazon’s doorstep service initially was limited to Los Angeles, four cities in Orange County and parts of Long Beach. Shoppers choose from a wide selection – some 500,000 items – of merchandise, groceries and specialty foods.
In recent weeks, AmazonFresh has expanded to Orange, Tustin, Garden Grove, Aliso Viejo, Santa Ana, Laguna Niguel and Mission Viejo in addition to Irvine, Anaheim, Huntington Beach and Newport Beach. All of Long Beach is also eligible for delivery, a company spokesperson said.
The expansion comes as Amazon sees positive results in the greater Los Angeles area.
“While I can’t share specific numbers, we are very pleased with the response from our customers so far,” AmazonFresh said in a statement.
AmazonFresh’s grocery delivery expansion comes as doorstep food services experience a resurgence after failing years ago.
In 2013, revenue from online grocery sales reached $6.5 billion, according to market research firm IBIS World. By 2018, sales are projected to reach $10.1 billion as time-strapped consumers seek convenient ways to shop through mobiles devices and home computers, IBIS said.
AmazonFresh entered Los Angeles last summer after testing its grocery service near its home turf in Seattle. The service is also available in San Francisco and Berkeley.
Other food delivery options in the region include Winder Farms, Good Eggs, Deliveer, Instacart and Vons.
AmazonFresh rolls into San Diego
By Katherine P. Harvey2:08 P.M.JULY 29, 2014Updated5:36 P.M.

This entry was posted in Business Models, E-Commerce and tagged Amazon on August 20, 2014. Edit

==============AMAZING AMAZON POST AUGUST, 2014 ========

Amazing Amazon
Continually updated notes as I try to keep up with Jeff Bezos (impossible)
As of 10/23/2013

Background
JCR was working with a partner at a major consulting firm on CGF business. In a casual moment, they got talking about e-commerce, and the subject of Amazon came up. The partner shared that they had just completed a major piece about Amazon, using entirely public sources, for a retailer client. He graciously offered to share the work, and did not label the work confidential. JCR reviewed it and thought that the sources and insights were outstanding – but he thought it best not to quote or share the document directly. So these facts are largely from that analysis and that analysis’ public sources (shown at the end of this paper). They are extended by other facts and articles discovered by JCR.

Purpose

The purpose of this working paper is to lay out a case that Amazon deserves high-priority consideration by virtually all Fortune 1000 companies operating in a retail or manufacturer environment.
!Hypotheses
From 2015-2018, there is a high likelihood that:

1. E-commercewillbemainstream.Itwillbecomethepreferredmethodofshoppingformany consumers, and it will enjoy ubiquity and mainstream use by the global middle class like cell phones do today;
2. Amazon will lead e-commerce. Amazon will be – far and away – the leader in the e-commerce retailing space;
3. E-commercewillimpactfoodandbeverage.Itwillemergeasaforceinfoodandbeverageretail;
4. Amazon will aggressively enter food and beverage retail globally. They will establish themselves
in key markets as one of the top 10 customers of most manufacturers;
5. Amazon will “perfect” home delivery. They will crack the “last mile” of retail. They will “perfect” delivering direct to the home or to a designated agent of the home, thereby making obsolete traditional retailers who cannot do this;
6. Amazon will “perfect” their business model. Amazon will dominate best practice in logistics, fulfillment, and customer satisfaction over this planning period, in a manner so effective that others who fail to keep up will be left behind by 2016;
7. Amazon will disrupt most business models. Amazon can potentially disrupt fundamental assumptions bout store delivery, merchandising, and the viability of home delivery

Discussion
Experts project that:
– E-Commerce will exceed $1,400 billion revenue by 2020
– It will be ubiquitous, accepted by virtually all (like cell phones today)
– It will be primary source of purchasing by consumers, who will be intensively engaged
– It will extend from its current 33 retail categories into all retail categories

1. E-Commerce Will Be Mainstream
2. Amazon Will Lead E-Commerce
Amazon will be – far and away – the leader in the e-commerce retailing space. Amazon revenue will continue to grow fast: in 2013 it was $75 billion, up from $61, $48, $34, $25, and $19 billion in 2012, 2011, 2010, 2009, and 2008 respectively. Analysts predict revenue will reach $90 billion in 2014. By 2015, Amazon is highly likely to have revenues exceeding $100 billion annually. Conservatively, Amazon revenue is likely to grow 20% per year from 2015 to 2020, reaching at least $250 billion in 2020 (one third of e-commerce and more than half the size of Wal-Mart today).
Exhibit 2: Projected Amazon Revenue Growth (2008-2024)

Note: 2008-2012 are actual revenues !

Amazon will begin to directly threaten Walmart over this 2015-2020 planning cycle
Today, Amazon revenue ($61 billion) is small compared to brick & mortar Wal-Mart, who closed 2012 with revenue of $444 billion. But, it nonetheless is remarkable for an online retailer. In 2000, the entire universe

of e-commerce was predicted to be less than $20B by Forrester and yet today, Amazon alone sells $61 MM and is closing in on $100 MM.
In contrast, it appears that Wal-Mart online sales will be less than $10 million. $61 million versus $10 million: it seems reasonably clear who is going to win in e-commerce. Although recent reports make it very clear that Wal-Mart has woken up to the threat and is responding so no one can know for sure what the outcome of this battle will be.

Not bad for a company that opened for business as a bookseller less than 20 years ago – in 1995.

3. E-Commerce Will Impact Food And Beverage
Food & Beverages to Grow as a Proportion of Total E-Commerce Sales
Amazon will emerge as a force in food and beverage retail. Some have concluded that grocery was approximately $36M in 2011 and would nearly double by 2015 to $57M and nearly triple from 2011 to $101B in 2020. Furthermore, it is predicted that beverages would grow from $6B in 2011, to $8B in 2015, and to $17B by 2020 (see Exhibit 1).

Amazon will establish itself in key markets as one of our top 10 customers. The food and beverage category will grow in importance online and Amazon is expected to own 30% of that market.

Amazon will crack the “last mile” of retail. They will “perfect” delivering direct to the home or to a designated agent of the home, thereby marginalizing traditional retailers who cannot do this. Amazon is currently testing and honing their approach through AmazonFresh.

AmazonFresh
AmazonFresh is a new service that is currently available in Seattle and Los Angeles in select zip codes. The service offers same-day and early morning delivery on orders of over $35 of more than 500,000 Amazon items, including fresh grocery and local products. The annual “membership” costs $299 with unlimited free delivery and is offered as an additional level of Amazon Prime.

4. Amazon Will Aggressively Enter Food and Beverage Retail Globally

5. Amazon Will “Perfect” Home Delivery
Exhibit 3: AmazonFresh Sortable Shopping

6. Amazon Will “Perfect” Their Business Model
Amazon will dominate best practice in logistics, fulfillment, and customer satisfaction over this planning period, in a manner so effective that others who fail to keep up will be left behind by 2016. One example of their current testing in fulfillment, logistics, and delivery is the launch of

Amazon Locker.
Amazon Locker
Now Amazon has taken a small step toward eliminating the UPS wait with a service inspired less by the internet and more by the Port Authority. Amazon Locker allows you to have your packages sent to the equivalent of single-use P.O. boxes housed in 24-hour convenience stores, grocery stores and drug stores. Amazon sends you an email with a pickup code, which you enter on a touchscreen to open the door of the locker containing your package. You have three days from the delivery date to pick it up.
Additionally, Amazon has started sharing warehouse space with some of its key suppliers. Amazon has been sharing warehouse space with P&G for 3 years and is now in at least 7 P&G distribution centers. Amazon also has arrangements in place or is working out deals with companies such as Kimberly-Clark, Seventh Generation, and Georgia-Pacific.
7. Amazon Will Disrupt Many Business Models
Amazon can potentially disrupt fundamental assumptions about direct store delivery, merchandising, bottlers, OBPPC, and the viability of home delivery.

================ 2013 AMAZON FACT SHEET ========

Amazon Fact Sheet
Last Updated in Late 2013

Basic Facts
Corporate mission: We seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators
Headquarters: Seattle, WA
When Founded: The company was incorporated in 1994 as Cadabra and went online as Amazon.com in 1995
CEO: Jeffrey Bezos
Number of Employees: 97,000
Number of Retail Categories: 33 categories
Customers: 200 million active customers; 132 million unique visitors each month Fulfillment Centers: 89 worldwide, 54 million square feet of total space

Geographical Presence
Amazon has 89 fulfillment centers worldwide
Fulfillment centers are located in 8 countries including USA, Canada, France, Germany, Italy, China, Japan, and the UK
Amazon has separate retail sites for USA, Canada, France, Germany, Italy, China, Japan, and UK plus Brazil, India, Mexico, and Spain
The US fulfillment centers are located in: Arizona, California, Delaware, Indiana, Kansas, Kentucky, Nevada, New Hampshire, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington 1995: 400 square foot 2010: 50 fulfillment centers 26M square feet
Revenue was $61, $48, $34, $25, and $19B in 2012, 2011, 2010, 2009, and 2008 respectively o Annual revenue in 2011 was 27% more than Google’s
Revenue to reach $74.6B in 2013 (though $0 net income), 24.6% CAGR from 2011 Amazon’s market share represents one third of U.S. e-commerce sales

Amazon on pace to reach over $125B globally by 2016; 4.5% CAGR from 2010

North America: $65.4B by 2016; 23.2% CAGR from 2010

International: $61.3B by 2016; 26.3% CAGR from 2010 Amazon has had one of the fastest growths in the internet’s history

Financial Results

After 5 years eBay reached $0.4B, Google reached $1.5B, and Amazon reached $2.8B
Amazon Revenue vs. Net Income ($M)
$ $ $ $
70,000 52,500 35,000 17,500
00 (17,500)
$
2008 2009 2010 2011 2012
!
Millions ($)
!Organizational Structure
CEO and founder Jeffery Bezos and an eight-member board of directors
CEO oversees the Chief Financial Officer (CFO), the Chief Technology Officer and the following 8 departments:
o Business Development o E-Commerce Platform o International Retail
o North America Retail o Web Services
o Digital Media
o Legal & Secretary o Kindle
CFO oversees the Real Estate and Control department
International Retail oversees three separate departments: China, Europe and India
North America Retail oversees the following five departments: Seller Services, Operations, Toys, Sports & Home Improvement, Amazon Publishing and Music & Video
Web Services department oversees Amazon S3 and Database Services
Other departments include Product Development & Studios, Europe Operations, Global Advertising Sales, Computing Services, and Global Customer Fulfillment

Key Acquisitions
1998: PlanetAll, Junglee, Bookpages.co.uk
1999: Internet Movie Database (IMDb), Alexa Internet, Accept.com, Exchange.com, Pets.com, Home
Grocer, Back-to-Basics Toys, drugstore.com
2004: Joyo.com
2005: BookSurge, Mobipocket.com, CreateSpace.com
2006: Shopbop
2007: DPRreview.com, Brilliance Audio
2008: Audible.com, Fabric.com, Box Office Mojo, AbeBooks, Shelfari, Reflexive Entertainment 2009: Zappos, Lexcycle. SnapTell, Stanza
2010: Touchco, Woot, Quidsi, BuyVIP, Amie Street
2011: LoveFilm, The Book Depository, Pushbutton, Yap
2012: Kiva Systems, Teachstreet, Evi
2013: IVONA Software, GoodReads, Liquavista
Corporate Timeline (1995-2013)
July, 1995
o Began selling books online

o Two small fulfillment centers – Seattle and Delaware 1999
o Acquired Pets.com for $58 million
o Acquired Home Grocer for $42.5 million
o Acquired Back-to-Basics toys for $135 million
o Acquired drugstore.com for $44 million
o (Since then have acquired hardware, car, electronics, sporting goods, luxury, wine, etc.)

2001
o Became the online engine behind Borders.com o Broadened beyond books to CD’s and DVD’s

2005
o Launched Amazon Prime 2007
o Launched Kindle (developed by Lab126, their internal appliance R&D shop)
o Launched Amazon Fresh in Seattle 2008
o $19 billion revenue 2009
o $24.5 billion revenue (+28%)
o $.6 billion net income
o Acquired Zappos for $920 million
2010
o Acquired Quidsi for $500 million (owns Diapers.com) 2011
o $48 billion revenue (+41%) 2012
o 164 million active customers
o $61 billion revenue (+27%)
o $.6 billion net income
o Launched AmazonSupply (with 500,000 products, in 14 categories, B2B target)
• • •
o (Instant new major competitor for Blockbuster and Netflix)
2013
o $75 billion revenue PROJECTED (+22%)
o $0 net income
o 200 million active customers
!o (132 million every month, compared to EBAY 60MM; Wal-Mart 63 MM; Apple 18MM)
Product Categories
In 15 years, Amazon went from one category (books) to 33 (cloud services, clothing, baby products, sports, electronics, music, video games, books, film, audio, beauty products, tools & home improvement, office products etc.)
!• Has introduced two new product categories every year for almost a decade !Strategies
Build, buy, partner
o Build: new categories (e.g., MYHABIT)
o Buy: well-established competitors (E.g., Quidsi)
o Partner: offers tech service / e-commerce expertize to third parties (e.g., cobranded website
with Toys “R” Us Customer-first solutions
o Bottom-up approach: customer needs drive everything
o Frugality: Amazon continually seeking to do things cost-efficiently o Innovation: Amazon always seeing simpler solutions

Data & human driven customer service
o Every employee, even the CEO, spends two days every two years on the service desk to answer
calls and help customers
o 90% of customer service by email rather than by telephone
o Amazon has developed its own software to manage email centers

Convenience
o 1-click ordering
o Amazon Prime – $79 / year, instant streaming of movies & TV shows, instant access to thousands
of Kindle Books, free-two day shipping
o Amazon Locker – lockers installed in grocery, convenience and drugstore outlets that can accept
packages for customers for a later pick-up o Moving towards same-day delivery
▪ Building warehouses close to city center – risky because Amazon will pay states taxes it did not pay before, but it will get closer to same-day deliver
▪ Warehouses currently being built in California, Indiana, New Jersey, Tennessee, South Carolina, Virginia
o Amazon Supply – free two-day shipping for orders over $50 Low price
o Amazon significantly cheaper than competitors Digital optimization of supply chain
• •
Amazon automatically chooses the cheapest origin for the customer’s order in real-time It re-optimizes it based on the customers’ orders
Fast moving items are stored in all the fulfillment centers
Hard-to-find items are kept in small quantities in one or two fulfillment centers
Easily movable items (e.g. media) are stored in highly automated facilities
Extensive use of tracing
Drop shipping: when applicable, Amazon provides packages and asks the supplier to ship the product himself
Third-party sellers follow the same principle, which increases margins
Selling at a loss – costs around $210 to produce, sold at $199
But over the first 6 months of use, Amazon makes $136 of margin on average on every Kindle Fire by selling digital content
Amazon is developing international partnerships with retailers (e.g., Darty in France) to sell more Kindles

Kindle

Wal-Mart had 62.5M unique visitors in August 2013, compared with Amazon’s 133M Wal-Mart copycatting some of Amazon’s most successful tactics
o Trying out lockers, allowing shoppers to order items online and pick them up in stores o Dabbling in same-day delivery (testing in four cities) and even going a step further than
Amazon by attempting to crowd-source package drop-off among customers
o Investing in web technology to improve both their site’s appearance and ease of navigation

Comparisons to Wal-Mart
Contrary to Wal-Mart, which failed to enter the German and South Korean markets, Amazon’s international expansion has been successful
Amazon to reach $74.6B in 2013, 24.6% CAGR from 2011
o Wal-Mart’s revenue will be $500B in 2013, but its revenue in e-commerce by 2014 will reach just $10B
E-commerce is growing at 11% a year, but sales for consumer packaged goods online – food, groceries, everyday items – are growing at closer to 20% this is the area Wal-Mart will go after
o Amazon already one step ahead with Amazon Fresh !!

Added Sources:
How Amazon Controls Ecommerce (Slides)
http://www.forbes.com/sites/clareoconnor/2013/04/23/wal-mart-vs-amazon-worlds-biggest-e-commerce- battle-could-boil-down-to-vegetables/
======================

History of US Immigration

Borders
A History of Border Security, Illegal and legal immigration

Overview

Regulating the flow of immigrants into the United States has a long, and often tawdry past.

Once regulated, entry then becomes “legal” or “illegal”. And “legal” entry is now generally highly restricted, on a temporary or permanent basis to three different routes: employment, family reunification, or humanitarian protection. All other entry: “illegal”.

Once regulated, borders then become “secure” or “insecure”. Because of trade, borders needed to be highly efficient for goods, and highly “secure” for people. This distinction, between the flow of goods and the flow of people, was an almost unenforceable dilemma, where billions have been expended to do …. the best we can.

Who should regulate? The Supreme Court settled that issue in 1875, opining that this was the role of the Federal Government. Up until then, it was a state responsibility.

How should it regulate? Congress decided that racial quotas were the answer in 1917. Before that time, they actually banned Asian immigration in 1875. The essential idea was to restrict immigration by race to a % of the race’s population in the US (2% of that population was frequently used, noting that 2% of nothing is nothing). The notion of racial quotas was maintained until 1965!

Would there be any exceptions to racial quotas?

Yes, for refugees and asylum-seekers. Congress responded to American sympathies for those fleeing communism and those feeing persecution. Recognizing “refugees” added significant new complexity.

Yes, for spouses and children of American citizens.

Yes, for those born in the Western Hemisphere.

Once regulated, politicians could rail against immigrants, but they rarely provided the funds to enforce the border laws. We severely curtailed legal immigration, and illegal immigration was the easily anticipated result. In 1952, Congress specified that legal immigration be limited to 175,455 per year!

Also easily anticipated, “illegals” brought massive issues for schools, health care, housing, etc. As the number of “illegals” grew, so grew the pressure to do something, anything, to reduce the pressure. Congress has been forced to act, as they did in 1986 when they granted amnesty to approximately 3 million illegals!

So the history of immigration in the United States includes major shifts in policy in 1875 (Supreme Court rules), 1891 (Federal bureaucracy formed), 1924 (racial quotas put in place), 1986 (racial quotas replaced and amnesty granted).

“Illegals” are out of control. Estimates of illegals are 3 million illegals in 1986, 7 million in 2001, and 12 million in 2017. As a % of U.S. population, “foreign-born” dropped from 14.7% in 1910 to 4.7% in 1970, and has been rising ever since. In 2013, there were 13.1% of the population who were foreign born (CREDIT:PEW).

Discussion
Immigration became a full-fledged subject for the nation in 1875, when the Supreme Court ruled that it was a Federal responsibility. Shortly thereafter, Congress stepped up and began excluding people – literally making it “illegal” for them to enter the United States. They banned Asians in 1875 and Chinese in 1882 (the “Asian Exclusion Act” and the “Chinese Exclusion Act” set the stage for all restrictions on immigration that would follow.

In 1891, the Federal Government took a big step: they created a bureaucracy to execute the laws. The Immigration Act of 1891 established a Commissioner of Immigration in the Treasury Department. With the two exceptions noted above, states regulated immigration before 1890.

Before then, this “nation of immigrants” actually had an immigration hiatus from 1790 to 1815, when “foreign-born” reached a low. Immigration as we now know it began with some force in 1830, when “foreign-born reached 9.7% of the population. By 1850, census estimates place immigrants at 1.7 million people, and “foreign-born” at 2.2 million. Between 1870 and 1910, foreign born hovered between 13% and 15% of population. It then started to dip, moving to 4.7% in 1970. It has been climbing since, reaching 13.1% in 2013.

Since then, waves of immigration brought the country waves of immigrants:

Between 1850 and 1930, 25 million Europeans immigrated. Italians, Greeks, Hungarians, Poles, and others speaking Slavic languages made up the bulk of this migration. But among them were 5 million Germans, 3.5 million British, and 4.5 million Irish. 2.5 to 4 million Jews were among them.

The twentieth century began with debates about immigration, and we have been debating the subject ever since.

In 1907, Congress created The Dillingham Commission to investigate the effects of immigration on the country. They wrote forty volumes on the subject.

In 1917, Congress changed the nation’s basic policy about immigration. We began setting “quotas” and limiting access based on literacy. The first such law was a literacy requirement in 1917.

In 1921, Congress adopted the Emergency Quota Act, set quotas. The National Origins Formula assigned quotas based on national origins. This complex legislation gave preference to immigrants from Central, Northern and Western Europe, severely limiting the numbers from Russia and Southern Europe, and declared all potential immigrants from Asia unworthy of entry into the United States (to our shame, this law made it virtually impossible for Jews fleeing Germany after 1934 to immigrate to the United States).

In 1924 , Congress adopted The Immigration Act of 1924. It set quotas for European immigrants so that no more than 2% of the 1890 immigrant stocks were allowed into America.

Interestingly, no quotas were set for people born in the Western Hemisphere.

This era, and its legislative framework, lasted until 1965. During this period, Congress recognized the notion of a “refugee” seeking “amnesty”. Jewish Holocaust survivors after the war, those fleeing Communist rule in Central Europe and Russia, Hungarians seeking refuge after their failed uprising in 1956, and Cubans after the 1960 revolution, and others moved the conscience of the nation.

In 1965, Congress adopted the Hart-Celler Act. It was a by-product of the civil rights revolution and a jewel in the crown of President Lyndon Johnson’s Great Society programs. It abolished the racially based quota system.The law replaced these quotas with new preferential categories. It gave particular preference to immigrants with U.S. relatives and job skills deemed critical.

In 1986, the Immigration Reform and Control Act (IRCA) was adopted. It created, for the first time, penalties for employers who hired illegal immigrants. IRCA, also granted amnesty to workers in the country illegally. In practice, amnesty was granted for about 3,000,000 illegal immigrants. Most were from Mexico. Legal Mexican immigrant family numbers were 2,198,000 in 1980, 4,289,000 in 1990 (includes IRCA), and 7,841,000 in 2000.

References

https://en.wikipedia.org/wiki/History_of_immigration_to_the_United_States

https://www.politico.com/magazine/story/2017/08/06/trump-history-of-american-immigration-215464

https://americanimmigrationcouncil.org/research/why-don’t-they-just-get-line

How U.S. immigration laws and rules have changed through history

http://assets.pewresearch.org/wp-content/uploads/sites/7/reports/39.pdf

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3407978/

Freedom chasers, equilibrium chasers.

Freedom chasers, equilibrium chasers.

We don’t talk about it enough.

Walls throw it off
And make us wonder what’s on the other side.
Make us want to jump over them, go around them, scale them.

“Something there is that does not love a wall”.

Walls make us insecure, as we wonder who is trying to get in.
Without a wall, you know.
With a wall, you wonder.

Censors throw it off.
And make us wonder what the censored would say.
Make us want to say it, shout it, scream it.

Censors make us insecure, as we wonder whether we have the truth.
Without a censor, you know.
With a censor, you wonder.

Subsidies throw it off.
And make us wonder what things are really worth
Make us all crazy.
Those with them want more. Those without them want them.

Subsidies make us insecure, as we wonder whether the demand is real.
Without a subsidy, you know.
With a subsidy, you wonder.

New policies throw it off.
They jolt the old equilibrium,
Send the system into oscillations,
Throw it out of equilibrium,
Force a new equilibrium to be reached … or else.

New technologies throw it off.
They disrupt the old way.
Send the system into oscillations,
Throw it out of equilibrium.
Force a new equilibrium to be reached … or else.

New polluters throw it off.
They jolt the equilibrium in the commons.
Send the commons into oscillations,
Throw it out of equilibrium,
Force a new clean-up or cleansing equilibrium … or else.

New diseases throw if off.
They jolt body.
Send the body into oscillations,
Throw it out of equilibrium.
Force a new immunity equilibrium … or else.

Freedom at first is chaos,

And then the stop signs go up.
And most everyone agrees they are useful.

And then the rules are made.
And most everyone agrees they are useful.

And then decency rises to the top.
And most everyone agrees that its useful.

And then freedom is channeled, and settles down to equilibrium-chasing.

Freedom chasers, equilibrium chasers.

Pittsburgh

I’m struck by how many locals are here. Like Boston, if you grew up in Pittsburgh, it seems like you never leave. Lots of natives.

The importance of the city seems so obvious, now that I know what I know.

For starters, it’s location is strategic. It’s literally sits at the point of land where two great rivers, the Allegheny and the Monongahela, come together to join the Ohio River. These are massive bodies of water.

Before rail and interstate highways, how does the growing economy move its steel, industrial products and consumer products?

The rivers!

And it now makes perfect sense to me… That, where the Three Rivers join, the leadership of this area decided that this point should be commemorated as a major park.

Point Park is just that. It’s a monument to this area, where everyone can come and see why the area exists in the first place. And as a monument inside of a monument, a massive fountain stands at the point of Point Park.

As I look to the Ohio River, to my left is the train tracks. I see a massive freight train passing, with hundreds of cars. I see an incline up to Mount Washington, which overlooks the city. The inclines are a vestige of a past when it was difficult to access the hill tops. They are everywhere.

Also to my left is the Fort Pitt Tunnel, the exit from the city to the east across the M river.

Heinz Park, the stadium, over looks Point Park to the right.

So this is where it all begins. Point Park.

The city seems to grow out of Point Park, in a gradual incline from there, with the Allegheny to the left and the M to the right.

The M River is made for walking and biking.

Three Rivers heritage Trail is the bike/walking path that goes from downtown all the way up west side of the M river

Great Appalachian Trail goes up the east side of M River.

Lots of hills. Lots of green (Schenley, Point, Highland and Frick Park are extra special).

They talk here about the “Pittsburgh Renaissance”.

They mean by that the transition of Pittsburgh from being at the center of the industrial economy, with all of its disgusting grit, to being at the center of the knowledge economy, with the University of Pittsburg, Carnegie Mellon, and Duquesne university leading the way.

Fifth Ave., Forbes Avenue, and Center Street, Penn, and Liberty all connect downtown to these outer neighborhoods.

The neighborhoods are Squirrel Hill, East Liberty, Lawrenceville, the Strip District, Bloomfield, Oakland, Shadyside, and Southside. Like Atlanta, they each have their own pride and style.

Oakland is the Univ. of Pittsburgh and Carnegie Mellon and Schenley Park. Fifth Ave runs through it. The University of Pittsburgh is center stage. It’s a huge urban campus, with all of the hallmarks of classical architecture great libraries, chapels etc. But everyone knows that Carnegie-Mellon is the powerhouse – where you find the rocket fuel of the knowledge economy. It is every bit as much to Pittsburgh as MIT is to Boston.

Shadyside is a great little find. A real neighborhood, centered on Walnut Street (at Ivy). Only a mile walk to Oakland, East Liberty, and Squirrel Hill. Girasole is here – Italian upscale.

Bloomfield is “little Italy”. Not a very good little Italy, but maybe they will keep trying.

Squirrel Hill is awesome. Highly diverse. Walkable. On top of a hill. Close to everything. Great houses. A great find: Everyone Noodle, the home of soup dumplings in Pittsburgh. Place is always full. Big Jewish Community here too. Frick Park is here.

Strip District is warehouses, converted. 21st street and Penn is the center. My favorite: Wholey’s Seafood Market. It’s massive and very cool retail. Like Stew Leonard’s , only better.

Southside is bars, lots of them. The main drag is East Carson. It’s a wide, flat street that looks more like Texas than Pittsburgh. One place in particular, Hofbrahaus, is a raucous German beer hall, with steins, sausages, oom-pah-pah live music. In a section of Southside called Southside Works. At night, ask Uber to take you to the Bartram House Bakery at 2612 East Carson. Easy walk from Birmingham or Hot Metal Bridge.

Lawrenceville is restaurants, lots of them. It’s 48th – 40th. Past the Strip District near Penn. it’s a hike, but a good walk takes you from 48th to 21st.

Everyone here believes that Pittsburgh, a finalist, it’s going to land the second headquarters of Amazon.

Their attitude toward Amazon is a little bit like their attitude toward all sports, but particularly the Steelers: can do.

SmartWatch Technology Reliably Detects Afib

The quantified self movement strikes again!

CREDIT: Cleveland Clinic Article on Detection of Afib via SmartWatch

Smartwatch Technology Reliably Detects Afib Prior to Cardioversion
Study suggests a role for KardiaBand when paired with physician review

A newly FDA-approved smartwatch accessory can record heart rhythm and successfully differentiate atrial fibrillation (AF) from normal sinus rhythm (SR) through an automated algorithm, according to a Cleveland Clinic investigation. The study, which will be presented March 11 at the American College of Cardiology’s 67th Scientific Session, also showed that the accuracy of interpretation gets even better when the accessory is supported by physician review.
The findings suggest that the wearable technology, known as KardiaBand™, can help screen patients before presentation for elective cardioversion to avoid unnecessary procedures, among other potential uses.
KardiaBand, which consists of a software app for an Apple Watch® and a sensor band that replaces one of the watch’s straps, provides a 30-second recording of an ECG rhythm strip when the wearer places a thumb on the sensor band. The app contains an algorithm for automated detection of AF.
“Our objective was to determine how accurately KardiaBand and its algorithm can differentiate AF from sinus rhythm compared with physician-interpreted 12-lead ECGs,” says senior author Khaldoun Tarakji, MD, MPH, a Cleveland Clinic electrophysiologist. In November 2017, the device became the first smartwatch healthcare accessory to be approved by the FDA, “but we wanted to test it ourselves to determine how well it would perform in clinical practice,” Dr. Tarakji explains.
Study essentials
To that end, he and Cleveland Clinic colleagues prospectively enrolled 100 consecutive patients (mean age, 68 ± 11 years) with chronic AF who were scheduled to undergo cardioversion. Upon presenting for the cardioversion procedure, all patients were given a KardiaBand-equipped smartwatch and trained in its use, after which they underwent traditional ECG assessment and a 30-second KardiaBand recording. If cardioversion was still indicated, they underwent ECG and KardiaBand testing after the procedure. KardiaBand recordings were then compared with the physician-reviewed ECGs and also reviewed by two blinded electrophysiologists, with these readings compared to ECG interpretations.
Eight patients did not undergo cardioversion because they presented in SR; these patients were excluded. Among the remaining patients, a total of 169 pairs of ECG and KardiaBand recordings were available for comparison (each patient had two before and two after cardioversion).
Key findings
• Of the 169 pre-cardioversion KardiaBand recordings, 57 fell out as “unclassified,” meaning that the KardiaBand algorithm did not draw a conclusion of either AF or SR.
• Among the remaining 112 pairs of recordings, the reviewing electrophysiologists determined that the KardiaBand algorithm correctly detected AF with 93 percent sensitivity and 84 percent specificity compared with ECG.
• When the blinded reviewers bypassed the automated algorithm and interpreted each patient’s KardiaBand strips against his or her ECG, sensitivity rose to 99 percent and specificity was 83 percent. Further, in the 57 unclassified cases, the reviewers were able to use the strips to correctly diagnose AF versus SR with 100 percent sensitivity and 80 percent specificity.
“This study shows that KardiaBand provides excellent sensitivity and good specificity in identifying AF,” says Dr. Tarakji. “The numbers improve further with physician overview of these recordings, indicating that even unclassified KardiaBand strip recordings could be of value to reading physicians.”
Smart devices demand smart use
KardiaBand carries the benefit of enabling patients to record their rhythm at any time, as opposed to only when they are wearing a Holter monitor or at a physician’s office. “We can catch intermittent episodes when they happen, and we’re not limited to a specific duration of monitoring time,” Dr. Tarakji says. He adds that wearable devices like this can also reduce time spent responding to false alarms if a recording taken at the same time shows normal rhythm.
Yet many questions remain about how KardiaBand and similar products may ultimately be used in practice. Dr. Tarakji cites a few examples:
• Which patients are best suited to this technology? For many patients dealing with AF, KardiaBand can provide reassurance when they need it. But for others, having constant access to their ECG data may lead them to check their rhythm obsessively, raising anxiety. “In general, however, patients value the instant feedback they get,” Dr. Tarakji observes.
• Do physicians have the IT infrastructure in place to make these devices part of their practice? Wearable devices can mean a flood of event reports to clinicians’ email boxes. At Cleveland Clinic, information from patients’ KardiaBands bypasses the email system and feeds into a cloud-computing platform that physicians can access anytime.
• How should clinicians respond to short episodes, particularly in asymptomatic patients? “We currently have a gap in our clinical knowledge about whether brief, random episodes that are asymptomatic warrant anticoagulation or not,” Dr. Tarakji explains, adding that ongoing studies are trying to address this important question.
“Future studies will focus on how we can use these smart devices intelligently to make sure they’re improving quality of care rather than just producing noise for physicians,” he observes.
A parallel goal, he says, is to ensure that the devices provide value by making care delivery more efficient. Noting that patients currently need to pay for KardiaBand out of pocket, Dr. Tarakji says that “developing a richer body of research evidence is the best way we can demonstrate cost-effectiveness to healthcare payers.”
Tech like this can’t be ignored
Indeed, KardiaBand could prove cost-effective by allowing patients who are in SR to avoid needless trips for elective procedures, such as in the case of the eight patients in the study who were found to be in SR when they presented for cardioversion and did not require the procedure. Other potential uses of KardiaBand for the longitudinal management of AF patients could well prove cost-effective too.
Regardless of how quickly such cost-effectiveness evidence may come, Dr. Tarakji says clinicians cannot be passive in the face of technologies like KardiaBand. “Patients will come to us with new products, and we can’t turn away,” he observes. “We need to test these products and find ways of responding to the information they deliver in a way that improves patient outcomes, all while remaining mindful of both patient and physician satisfaction.”
The researchers report that KardiaBand’s manufacturer, AliveCor, provided smartwatches for the study but was not involved in the study’s design, implementation, data analysis or interpretation.

Well-Being – Real Time Revisited

NOTE: This post revisits a post titled “Well-Being Real Time”. The original post was May, 2014, and can be found at: http://johncreid.com/2014/05/well-being-real-time/.

Well-Being – Real Time Revisited

Well-being is arguably the central mega-trend of the 21st century. As we look to the future, we have an obligation to “unpack” this dense concept, and find its essential component parts.

We describe these components here as “ACE” – ACT, CARE, and EAT. The wish we have for ourselves and for others is to be well. “Be Well” is our salutation and our call to actions.

How far out are we looking?

The future is now. ACE is here – together with real time measuring and monitoring. ACE is our pathway to greater and greater levels of personal well-being.

ACE measuring and monitoring will be supported by all elements of the quantified self movement. FitBit, Apple Watch, and so many other new monitoring devices will allow us to to bring personal well-being into a real-time modality.

ACE represents three pillars, each deceptively simple:

A – ACT: ACT is short for activity. The call to action is “stay active”. Well-being activity has physical activity at its center, but the pillar also embraces social activity, and activities of the mind. Staying active is a critical element of being well.
C – CARE: CARE is short for well-being care. The call to action is “care for yourself” and “care for others.”Well-being care of course has health care at its center, but there is so much more. e.g. genomics, massage, essential oils, acupuncture, etc. “Caring for myself” and “Caring for others” are elements of this pillar. “Preventive care” regular check-ups, colonoscopies after age 50, mammograms, pre-natal care for expecting mothers, etc.
E – EAT: EAT is short for eating and drinking. The call to action is “Eat well.” Well-being eating is the exploration of how what we eat and drink contributes to our well-being.

As simple as these pillars appear, each is complex: deep enough for a life-time of focus. Each represents bodies of research, skills, capabilities, and areas of professional endeavor. All together, these pillars represent pathway that each of us will follow as we attain greater and greater levels of personal well-being.

Discussion:

ACT

A – ACT (walking, running, calories burned etc)

Staying active is a critical element of being well. Well-being activity has physical activity at its center: sports, walking, lifting, climbing, yoga, and all of the other activities that light up a FitBit. The pillar also embraces activity of other kinds, e.g. social activity, and activities of the mind.

CARE

Well-being care is all about promoting health. Of course, it has health care at its center, but there is so much more. e.g. mental health, addictive behaviors, massage, genomics, essential oils, acupuncture, etc.

“Caring for myself” and “Caring for others” are elements of this pillar. “Preventive care”, eldercare and aging, palliative care are included, but so are regular check-ups, colonoscopies after age 50, mammograms, pre-natal care for expecting mothers, etc.

The ability to routinely monitor vital signs at home or at the office will be a part of this pillar. Lab work – including saliva, blood, and stool samples, will be more real time, more regular and less expensive. These trends will be one of the keys to progress in the care pillar. On the innovation side of this pillar will be many technologies, but breakthroughs in genomics will certainly be high on the list. Telemedicine is another innovation that will alter access to well-being care.

Predictive modeling will be more relevant than never. Am I headed for pre-diabetes? If so, what evidence shows me a path to avoid that condition?

CARE-MMEDS (what MEDS I take, what compliance I have, etc)

CARE-RResting Metabolic Rate (calories burned at rest)

CARE-VVITALS (pulse, BP, etc)

CARE-LLABS (blood testing, etc)

CARE-SSleep (duration, deep sleep, etc)

EAT

EAT is short for eating and drinking. The call to action is “Eat well.”

Well-being eating is the exploration of how what we eat and drink contributes to our well-being. Naturally, there is a social element, where eating and drinking together makes the experience more fulfilling. There is a physiological element, having to do with ingestion, osmosis, calories, glucose and glycogen, enzymes, etc. There is a psychological element, related to the feelings of satiety, or hunger, or thirst, and their related cravings. There is a sensory element, where sweet and sour contrasts, aromas, and their related metaphorical associations, play a part.

Eating delicious food and drink with friends is certainly a component. But achieving a balanced diet, with moderation as a central tenant,

On the one hand, this pillar is ancient. For thousands of years, elders have taught daughters and sons how to cook well. and cooking techniques have evolved

On the other hand, this pillar is ripe for innovation. The new breakthrough science related to the micro-biome is a part.

EATS (what I eat and drink, especially calories)

Implications

Monitoring all components of ACE (MEDS, Activity, Resting Metabolism,VITALS, EATS, LABS, Sleep) is now going to accelerate at an exponential rate.

There will be three settings where ACE monitoring will accelerate:

Employees in Workplaces: Employers will offer employees routine monitoring as part of employee benefits and/or health insurance.
Residents in Communities: Communities will offer residents routine monitoring as one of their amenities. Wellbeing facilities and programs will become as important as golf courses and swimming pools. Look for HOA’s,Condo and Coop associations, and subdivision developers to increasingly view MARVELS as critical to “place-making”.
Clients of service-providers: Hotels, spas, assisted-living centers, nursing homes, and many others will increasingly offer MARVELS monitoring as one of their base services.

The Privacy Imperative will be the critical success factor for all of these pushes into the future. It is foundational.

Without it, there will be no progress.

With it, personalized, real-time care will flourish. Each individual will be able to opt-in to his care-coaching community (and to opt-out whenever they choose), and get the extraordinary benefits that such a community can provide.

Want to talk to your well-being coach? FaceTime them, and they – with your permission – will help you sort out what’s going on with you.

Feel like you might need a check-in with a doctor? Send them an email – with your ACE history embedded in it, or get them on the phone or FaceTime, and see if they need you to come in.

The future is now.

BEWELL Centers will be everywhere. Look for:

DWELL CENTERS (part of BEWELL Centers) – for community ACE measuring and monitoring support. Target population is neighbors in the community.

Employee BEWELL CENTERS (part of BEWELL Centers) – for employees in workplaces ACE measuring and monitoring support. Target population is employees in the workplace.

CLIENT BEWELL CENTERS (Part of BEWELL Centers – for service-providers ACE measuring and monitoring support.Target population is clients of the service provider.
(Walgreens and CVS are already moving aggressively in this direction>

References:
The Privacy Imperative
LABS revolution
LABS By Disease
Quantified Self Movement