In this videocast, I discuss what I am calling the Law of Diminishing Abundance of Internet. It is a construct that some companies become poorer even when they are growing in numbers of customers reached.That applies to industrial sectors like publishing and telecoms. The lesson here is that risk in any business model must be examined from the lens of this mirage abundance which Internet has provided in some sectors.
In this videocast, I make a case why Nigeria must look beyond the center as it works to develop a homegrown manufacturing plan. Manufacturing is critical for job creation but using the Smiling Curves, there are many other elements in commerce that must be enabled for a strong economic system. If you neglect those elements, you just keep being busy while other countries get all the values. We use cases of banking and publishing to support our thesis for a new plan that is wholistic, beyond the ability to make just pencils and toothpicks in Nigeria. We need to build brands and create original ideas.
Jeff Bezos did a great deal by buying Whole Foods for Amazon. The Amazon’s deal to buy Whole Foods may be remembered as the dawn of a new era in business, when an old industry stubbornly resistant to change suddenly gave way to something modern and innovative. But supermarkets were once themselves a cutting-edge concept, according to QZ in a newsletter.
It wasn’t that long ago that shoppers went to the butcher for meat, the baker for bread, and the green grocer for produce. Starting in 1930, the supermarket pulled it all together. The bounty of the American supermarket, with its towers of toilet paper and freezers full of meat, was so arresting to Soviet officials who visited one in 1989 that it shattered their faith in communism and helped end the Cold War.
Modern supermarkets were made possible by a host of changes, from industrial-scale farming to the interstate highway system. But after pioneering a logistics revolution that paved the way for shopping malls and big-box stores, progress pretty much stopped. While virtually every other domain of commerce has changed dramatically with the advent of the internet, online grocers were stymied by the challenge of delivering perishables while operating within the tight margins that make groceries a competitive business.
Why is this time different? Part of it is the track record of Amazon and Jeff Bezos; from books to television shows, there is little, if anything, they haven’t been able to sell online.
Bezos will soon be the richest person in the world. After today, Amazon is headed toward being the biggest company. And just as flip phones became obsolete the day after iPhones were introduced, Amazon-powered food buying could soon make us wonder how we ever managed before. He is the second richest man right now at $84.1 billion.
Here is Bill Gates number today – $89.3 billion. Jeff is just behind
By Q2 2018, Jeff will top Bill Gates, looking at the growth of his wealth over the years and the impact of this huge deal.
Keystone Bank Nigeria has unveiled an e-commerce marketplace to bring merchants in its ecosystems.
Keystone Bank Limited (hereinafter referred to as Keystone Bank) provides the information contained on the Pink Network and Marketplace portal and any of the pages so contained in the portal (“Portal”) is subject to the terms and conditions (“the terms”) set out herein and referenced herein.
It is copying GTBank here which has used its own marketplace to bring small businesses in its banking network. In the Pink Network, merchants can showcase their goods in stores where buyers can interact with them. The key is that all processing of transactions will be handled by Keystone Bank.
Etisalat Nigeria has provided information on its efforts to resolve its loan challenges after the bombshell news that its principal shareholder had pulled out of Nigeria. Full statement below.
Etisalat Nigeria is aware of news reports to the effect that Mubadala Development Company, the majority shareholder of the company is exiting the business. Whilst it is premature at this stage of the ongoing discussion to affirm that this is the conclusive option, Etisalat Nigeria considers it pertinent to state that parties in the negotiation are considering a number of options and discussions are at an advanced stage regarding the syndicated loan agreement with the banks. It will therefore be presumptive and in bad faith to begin to predict the outcome.
Discussions have so far been quite collaborative and we expect to reach a final resolution next week, by which time we will be in the position to make a definitive announcement.
Etisalat Nigeria can confirm that negotiations with the consortium of banks regarding the syndicated loan agreement signed in 2013 have reached an advanced stage. As noted in an earlier statement, we are considering a number of options and are not taking anything off the table at this time.
Etisalat remains a viable business, having recorded its best financial year in 2016. So parties are keen to ensure that the ongoing discussions and eventual outcome do not affect the day to day operations of the business whether now or after the announcement of our agreement. All parties have continually demonstrated an interest in the continued operations of Etisalat as a business as it remains a backbone of millions of small business owners; multinationals, government and indeed Nigerian subscribers in general.
Signed:
Ibrahim Dikko
VP, Regulatory & Corporate Affairs
Etisalat Nigeria