◆In January, Amazon, along with JPMorgan Chase and Berkshire Hathaway, announced a new healthcare company. The three companies merely said it would provide high-quality healthcare for their employees and families at a reasonable cost.
◆But healthcare investors got nervous at the prospect, selling off shares of established players like UnitedHealth and Anthem.
◆In June 2017, Amazon bought Whole Foods. The unexpected deal sent shares of several biggest grocers, including Walmart, down sharply. Kroger, another top grocer, lost one-tenth of its value on the day of the announcement.
◆A similar rattling effect was felt in India when Reliance Jio Infocomm Ltd, the homegrown telecommunications company owned by Mukesh Ambani, announced its expansion into fixed-line broadband with Jio GigaFiber. Instant reaction: Shares of cable TV service providers Den Networks, Siti Cable and Hathway Cable witnessed intraday fall of 11%, 5.5% and 18%, respectively. Companies are also preparing a war-chest: Hathway announced it is raising funds up to ₹100 crore from promoters.
◆Such events are not in response to just a competitor building a similar product. It was in response to Reliance Industries Ltd (RIL)’s ambitions, which have few limits, and the mere spectre of its entry into a particular industry can shape markets.
◆Sample the scale: Jio’s services, which commercially launched on 5 September 2016, acquired 16 million subscribers within the first month. It had around 130 million subscribers in October 2017 and 186.6 million as of April. In less than two years, it owns over 20% of the market.
◆Amazon, too, began to knock off weaker brick-and-mortar rivals, leading to a “last man standing” thesis. Amazon already controls 40% of the US e-commerce market and is on track to own 50% by 2021. According to Bain Insights, the Seattle-based retail disruptor will capture around 70% of all e-commerce growth over the next five years.
Amazon
◆Amazon is an American electronic commerce and cloud computing company.
◆It was founded By Jeff Bezos on 5th July 1994,in Seattle, Washington .
◆The tech giant is the largest Internet retailer in the world as measured by revenue and market capitalization, and second largest after Alibaba Group in terms of total sales.
Jeff Bezos (Co-founder and CEO: Amazon), Also the richest man in the world
Reliance Jio
◆Reliance Jio is an Indian mobile network operator.
◆It was founded by Reliance Industries on 25 December 2015,Located at Navi Mumbai .
◆It operates a national LTE network with coverage across all 22 telecom circles.
◆Jio does not offer 2G or 3G service, and instead utilizes voice over LTE to provide voice service on its network.
◆JIO since its launch has provided free and unlimited phone calling to all over India to any network. In response a few other telecom provider have also started providing free calling service to its subscribers.
Mukesh Ambani (Chairman : Reliance Group ), Richest Man in Aisa
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