Enjoy this weekly feed of inspiring, interesting and intellectual articles and news, with a focus on disruption!
Bankers watch out!
A new report by Citigroup is predicting that the banking industry will need to cut 1.7 million jobs within the next decade. That’s a third of the current workforce! Fintech and new technological efficiencies are the two main forces behind this disruptive change. Fintech is advancing quickly in lending and payments, both of which are high margin businesses for banks. At the same time low interest rates are crippling banks profitability.
Foxconn buys Sharp
Foxconn (Major supplier for Apple) is acquiring a controlling two thirds of Sharp, for $3.5 billion. Two VERY interesting things here: First off Sharp is its own consumer brand and has a chunk of capabilities for designing and producing electronics, giving Foxconn all the capabilities they need to just go make their own phones and tech gadgets.
Second, they will bring display manufacturing under their wing. That could be particularly crucial for Apple, which is rumored to be making OLED iPhones in 2018. Apple could then turn to its biggest manufacturing partner for screens and avoid supporting mobile rivals like LG and Samsung, who currently dominate the OLED space.
Airbnb are planning add-on services
The vacation rental platform Airbnb has carried out tests for tourists to book add-on services through their platform. Internally the project has been referred to as ”Magical Trips” and has been one of the top priorities for the super unicorn that was valued at more than 25 billion USD in January 2016. The tests have for example included restaurant reservations, tours and bike rentals. In a recent interview Airbnb CEO Brian Cheesky said that the company wants to help people become part of a neighborhood when they go abroad. Finding additional revenue streams from add-on services is something most competing travel sites do but Airbnb is expected to offer something different and unique. The feature is said to be released later this year, will it be another success for the already so lucrative tech-firm?
Amazon’s End-to-End Delivery Solution – The Opposite of IKEA
As Amazon is starting to sell bigger and bulkier products, they often require some work from the customers in order to assemble and install them. It seemed at first that the Amazon Home Services, previously mentioned in this blog series, was just a new peer-to-peer platform. However, it appears now that this new business is to be integrated with the core business of amazon – selling cheap stuff online. Amazon relies on local businesses to carry out the work and keeps 20 % of the transaction as well as enabling the selling of larger products. This is really the opposite of the IKEA business innovation of letting the customers collect, assemble and install the products themselves.