The buy of WhatsApp by Facebook despite some questions

Two years after buying Instagram for $1 billion, Facebook bought WhatsApp in February 2014 for  approximately $19 billion.

 

 

The barriers to entry in the market of new technologies become more and more narrow. To avoid the threat of new entrants, the digital companies like Facebook, Apple or Google can't and don't hesitate to put huge sum of money to buy starts-up which have a big potential. (like Amazon for Twitch). With more 450 millions of active users per month and an expectation of 1 billion users according to Marc Zuckerberg, we can remark that WhatsApp had a better potential than Facebook messenger, so it appears as a big competitor, that’s why Facebook needed and wanted to buy WhatsApp.  This buy is in the strategy of a social operating system, to have more and more users and to gather two tools which are Facebook and WhatsApp the best ways in term of communication and share. This acquisition reinforce Facebook’s business model and strategy which are turn to the mobile world.  

 

 

  

However, this acquisition is not an entry into the Asian or African market, because there are already many services such as Line, Wechat in Asia and Mxit in Africa. Furthermore, this quantity of money could lead to an internet bubble, because WhatsApp has only 20 million of turnover according to Forbes and this buy dropped of about 4% the Facebook stock price.

 

Whatsapp's Growth in Users

Thanks to the Instagram and WhatsApp's acquisitions, Facebook has now two out of services the more popular on smartphone and monetize and collect the data of both apps could be a great opportunity. As the dailymail said, "some in the European telecoms industry had fiercely opposed the deal" because they were afraid by the consequences of this acquisition (Whatsapp is free and can be used on every mobile phone, unlike calls).


 

References :

 

http://www.dailymail.co.uk/sciencetech/article-2782370/Facebook-completes-19-billion-acquisition-WhatsApp-European-regulators-green-light.html

What is Bitcoin and how can it influence economy ?

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by lots of people running computers all around the world, using software that solves mathematical problems.

The Guardian  criticizes the Bitcoin by underlining that the electronic currency has some threatening aspects.

 

Indeed, the Bitcoin is describe as the Mortgage system which made Lehman Brothers collapsed and led to the international financial crisis. Moreover it could be a threat for the employment as the Bitcoin Removes liquid assets from traditional trading resources used to employ populations.

 

Therefore, speculators find an easy way to launder illicit funds which cannot be under the control of the government.

Finally, Paul Krugman states that even if Bitcoin can make people rich, it has a real negative cost for the economy and declares that it is not why a legitimate monetary system is made for.          

 

The point of view of Ben Bernanke, president of the FED, who addressed a letter to American Congress contains more positive points of view that Bitcoin and other virtual currencies may hold long-term promise.

Indeed, FED’s president highlights the fact that Bitcoin is faster, more secure and more efficient than other payment’s system. Moreover, he thinks people can get rich quick with little input or effort which is very important for most of them.  It could also reduce administration costs (it’s a very strong argument because it permit to economize money and time, both on the side of customers and banks), and permits the Federal Reserve to plan to work with other financial agencies for banking organisations.

Both articles are engaged concerning Bitcoin and digital currency. First we can remark that the Guardian’s article has a negative view, with many arguments like the lack of regulation or the increasing facility for laundering illicit funds. Ben Bernanke and his letter to Congress (which contain positives arguments) seems more optimistic for the development of Bitcoin and digital currency.   

 

References :
 

-http://www.theguardian.com/business/2015/jan/16/internet-weirdos-bitcoin-shaping-way-money-works/

-http://qz.com/148399/ben-bernanke-bitcoin-may-hold-long-term-promise/

                                           

 

 

 

 

What is Twitch and why Amazon paid $ 970 Million to acquier it ?

Twitch, the world's leading video platform and community for gamers with more than 60 million visitors per month. Recently, the American international electronic commerce company Amazon, gained Twitch for approximately $970 Millions of dollars. 

 

Bloomberg.com tries to explain us the reasons why the American company invests this incredible amount of money to acquire Twitch.

 

Twitch Logo

In Korea, the Twitch’s concept is well-developed and there are channels on Korean television devoted to broadcasting StarCraft and other live game battles.

Currently, that concept, supported and financed by Amazon, is trying to launch himself all over the world, encouraged by many studies like IHS’s, which comptabilized no less than 2,4 billion hours of video watched by people last year. Twitch hopes to increase that statistics by extending his concept with newer game consol.

Another statistic tends to confirm the power of Twitch. Indeed, each Twitch user watched an average of 4.5 hours in July. That's fast approaching YouTube's 6-hour-a-month average.

Forbe's article confirms the strong and the power of Twitch, thanks to its audience. Indeed, the two years old startup with more than 45 million unique monthly viewers, does better than the Internet video service Hulu and Walt Disney. As Matthew DiPietro, Vice President of marketing at Twitch, said, everyone in the gaming industry is now present in the platform.

The end of the year could increase the power of Twitch, thanks to the November launches of new video game consoles from Sony and Microsoft, because Sony’s PlayStation 4 has integrated support for broadcasting, and Microsoft’s Xbox One has those capabilities on the way.

 

 

 References :

-http://www.bloomberg.com/news/2014-08-25/why-amazon-is-paying-970-million-for-twitch-in-one-chart.html

-http://www.forbes.com/sites/davidewalt/2014/01/16/twitch-streaming-video-audience-growth/

 

 

 

 

 

 

 

 

 

Drive through service , why and how can it works ?

Supervalu launched its first drive-through service in 2014 in Ireland whereas about 2700 are already established in France since 2007. The number has doubled between 2012 and 2015 in France. "Sales of all drives should reach 2 billion euros at the end of the year", according to drive through service specialists.  

 

The aim of this service is to order on the Internet and choose when you want to pick up within your car at the outside of your favorite supermarket. Customer have the same products without time wasting, the queue and crowd are avoid. Although ordering online many products could take more time as we think. The picking’  technology means allowing employees to take a lot of order at the same time, organize and pick up each products for each order before customers arrived, the logistic aspect is easier. But it is impossible to predict the number of order, some products can be out of stock and although equal product is proposed, it is an

inconvenient for customers who wants a particular product.

 

A good stock management is needed. In addition, 8 out of 10 French people are at less of 10 minutes from a drive to their work or house (catchment area), the drives' infrastructures have to be well represented and easily accessible to facilitate people weekly task. A major asset, there are not forwarding charges compare to cyber market ( except in some cases ).

 

The e-business and large retailers have never been so close and a new way of consumption appeared 5 years ago, to allow consumers to do their grocery shopping more virtually with a same price. However, the market comes in some areas , to saturation, and even if "he cake is growing" the competitions is reducing the share of each.

References :

-http://www.ladepeche.fr/article/2014/03/21/1845101-drives-age-doute-apres-10-ans-expansion-tout-azimuts.html

-http://www.journaldunet.com/ebusiness/commerce/les-chiffres-du-marche-du-drive-en-france.html