E-Commerce Laws in India Limit E-tailers Like Amazon

E-Commerce Laws in India Limit E-tailers Like Amazon

February 9, 2019

Two American companies will be affected adversely by India’s e-commerce investment rule, effective February 1st, 2019.

  • Walmart cannot sell products via Flipkart in which it has 77% equity interest.
  • Amazon cannot make deals with sellers to sell exclusively on their platform.

The rule protects India’s small retailers and traders at the expense of large online retailers’ operations in India.


Video Spotlight: Here’s why India is a huge threat for Amazon and Walmart


This post is based on the Reuters article, U.S. voices concern as India’s e-commerce restrictions hit Amazon, Walmart – sources, by Aftab Ahmed, Aditya Kalra, and Nandita Bose, January 24, 2019; and the YouTube video, Here’s why India is a huge threat for Amazon and Walmart, by CNBC Television, February 1, 2019. Image source: Shutterstock/xtock.

Discussion Questions:

1. Why did Walmart and Amazon decide to operate as online retailers in India?

Guidance: They wanted to tap into India’s booming e-commerce market and attract India’s growing population of tech-savvy shoppers with low-cost strategies.

2. What are the global operational risks for Walmart and Amazon?

Guidance: The global operational risks include tougher scrutiny of foreign business players, trade/investment policy that adversely affects foreign business Continue reading

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Samsung: Another Blockchain Convert

Samsung: Another Blockchain Convert

Samsung Electronics Co. is planning to cut shipping costs by 20% with the use of a blockchain ledger system to track its global shipments.  The blockchain system reduces documentation costs, shipping paperwork, and time to coordinate with port authorities.

(Check out previous OM in the News posts on blockchain’s use in increasing food safety and transparency, and reducing counterfeit goods and forced labor.)

This post is based on the Bloomberg article, Samsung Jumps on the Blockchain Bandwagon, by Sam Kim, April 15, 2018. Image source: Shutterstock / Gorodenkoff.

Discussion Questions:

1. What benefits does the blockchain ledger system have for Samsung’s global operations?

Guidance: This ledger system will enable Samsung to track global shipments worth tens of billions of dollars a year, cut shipping costs by 20%, reduce lead time between product launches and shipments, and better respond to competition and customer demand.

2. What impacts does blockchain have on information management in manufacturing supply chains?

Guidance: Transactions are recorded, verified and shared more securely, efficiently, and cost effectively.

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