Great article, Melissa! I wonder what changes Diageo will make to their core operating model, as in the past it has relied heavily on acquiring companies internationally and leveraging their scale to increase the asset’s operational efficiency. It seems to me that they will have to move their headquarters to another country in the EU or to make significant changes to the way the company operates and creates value.
Chris, you touch on a great point when you mention the skill gap. On this topic, a provocation: even if we could bring the production of the iPhone to the US without increasing costs that much, is that what’s better for society? Wouldn’t everyone be better off leaving the manual manufacturing work to developing countries that can perform it more efficiently and invest instead in empowering Americans to tackle the higher value-added jobs, particularly in technology?
Really interesting article Mykola! It was interesting to read about the role of individual contributors and business partners in ensuring Delta’s IT security, as one weak link can be exploited to enter Delta’s system. Regarding the hacking of autopilot systems during a flight, I think Delta (and most importantly the aircraft manufacturers) should ensure that planes have a “manual” mode in which pilots can overhaul the electronic autopilot in case of malfunction.
Great article Alejandro! Other than the costs of transportation, self-driving cars and trucks could be a great improvement in public health. Some experts predict it can reduce death in traffic accidents (one of the leading causes of death in the US and globally, http://asirt.org/initiatives/informing-road-users/road-safety-facts/road-crash-statistics) to be reduced by 90% (https://www.theatlantic.com/technology/archive/2015/09/self-driving-cars-could-save-300000-lives-per-decade-in-america/407956/).
Interesting article Michelle! Considering that main producers of cocoa are developing countries, I wonder if modern agriculture techniques such as mechanization and the extensive use of fertilizers could help improve yields even further. However, implementation could be challenging as it may reduce work opportunities for local population.
Thank for your article Kimberly! I agree that by setting the 2-day delivery standard at a flat fee Amazon set high expectations for itself and for competitors. At the same time, I think Amazon is doing a good job in creating complimentary delivery models and educating consumers about them. For example, with Amazon Prime Now and Amazon Fresh, the company is offering shorter delivery times, while at the same time charging a higher rate. In addition, for low value-add product, Amazon is offering the option to deliver the items for free as an add-on to other deliveries, thus bundling items for delivery and decreasing their overall shipping costs. Those are interesting alternatives to educate the consumers about the trade-offs in delivery logistics and break the expectation that all deliveries should be both free and fast.
This is an interesting topic, Ketty! I can see the customer appeal of more customized products, and the benefits of the shortened and more nimble supply chain with the Speedfactory, but I wonder what the impact of these changes are on costs. Is Adidas able to produce at an even or lower cost, or at least pass on the increased costs to the final customer?
Thank you for the article, hak! It is interesting to see that even a simple supply chain (one product, one supplier, one buyer) faces challenges. I’m looking forward to seeing what happens to Sriracha over the coming years, as they change their chili supplier.