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A potato farmer in the Himalyan foothills is able to buy his first refrigerator using his Jio smartphone, even though he lives in a remote part of  India with no paved roads or indoor plumbing. Jio is the company founded by Reliance Industries head Mukesh Ambani, that is changing the way India shops and how it accesses the internet. Jio brings 4G technology to India and dramatically brings down data prices. To do this Reliance used its past success in executing big projects. It was designed to be a network that reached 18,000 cities and towns, and 200,000 villages, some lacking electricity, requiring 200,000 cell towers and 150,000 miles of high tech fiber optic cable. The project is now essentially completed, according to the company. This may be the biggest one it has tackled. Starting in polyester yarn and textile business, and in oil refineries, the company sought to diversify into digital platforms to compete with the likes of Google and Netflix. Ambani sees Jio not as a telecom business but as a digital platform and plans to use it to sell advertising, sell content, and financial services, also selling high speed broadband services. Ambani's project was designed to give India the opportunity to leapfrog into 4G and high speed internet and do this along with expanding the access through lower prices in the market to reach millions of people in remote regions of India including rural areas. Low cost access to data helps level the playing field between the rich and the poor. There are about 390 million internet users in India, penetration of 28%. This is now changing rapidly as prices drop - the potato farmer who bought his first fridge did this on his phone, connecting online with Jio which built a tower nearby that beamed nearly unlimited 4G data for about $2.10 a month. Jio has now signed up 215 million subscribers with its low cost service. Bharti Airtel and Vodafone are larger competitors but it is Jio that has revolutionized the market in India, and which now enables companies like Amazon to use the new 4G services to build its retail online business.   ...

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Much of China's strong GDP growth year after year of 9-12% was generated through large fixed investments in manufacturing. More than 40% of GDP is from factory construction or fixed asset investment in housing and infrastructure. And this spawned suddenly on its own a whole generation of new small business bootstrap entrepreneurs, as if from nowhere, who were good at adapting and seeking out new opportunities as new factories and exports shot upwards. GDP multiplied 14 fold from 1980's. And created 5 million businesses of over 8 employees each, according to the State Administration for Industry and Commerce. In the processs creating 75 million jobs for university graduates, workers from state companies and fro migrants from the rural areas. These private companies and their investment spending make up half of the 2008 GDP of $4.42 trillion. But with the export model heavily dependent on overseas markets especially the USA, the collapsing export markets is shrinking production and investment. Industrial production which went up by 16% annually for 5 years, dropped to 3.8% for Jan-Feb 2009. Mr Yu and his company GenTech, profiled here, was an engineer who studied engineering in Beijing, then at Newcastle University in the UK, worked for Cargill in Iowa, and looked for opportunities away from agricultural engineering. Adapting to China's needs in first semiconductors and then solar equipment assembly lines, he provided the high tech tubing for the gases and chemicals used in manufacturing assembly lines, competing with the likes of Air Products and Chemicals of the USA....

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WSJ reports that Tech companies spent heavily in 2022 to block legislation in the US. Congress. This means the US Justice Department had to step in with the Executive Branch determined to dismantle the edifice of anti competitive behavior that Google, Apple and other companies have built. States are also stepping in with the US Justice Department. Attorney General Merrick Garland seeks nothing less than to breakup Google as is clear from his statement on January 25 announcing the US Justice Department lawsuit. 

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Amazon profit was $92 million on sales of $23.18 billion for 2nd quarter 2015. Amazon shares went up by 17% with the profit announcement. By contrast Apple's results showed huge profits up 38% and improving margins, yet the stock price declined, possibly because of an expected slowdown in China sales which played a part in Apple's better results. This shows different ways analysts and investors look at tech companies. Amazon has growth of close to 20% for several years, with large investments in warehouses to speed shipping, and early investments in cloud computing. Amazon made operating profits of $703 million on sales increase of 25% to $13.8 billion for the 2nd quarter 2015 in the North American market. Overseas sales increased only by 3% to $7.6 billion showing operating loss of $19 million. Amazon plans to expand with a consumer retail site for Mexico. Sales growth in North America and in cloud computing are two bright spots. In cloud computing services Amazon Web Services increased sales 81% to $1.82 billion, higher than 1st quarter growth of 49%. Profit for 2nd quarter in cloud computing was $391 million, compared to $77 million in the same quarter in 2014. ...

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The US is requesting talks with China at the World Trade Organization with the objective of ending hundreds of millions of dollars of subsidies China gives to increase wind energy production. The wind power grants are being targeted because Chinese producers are required to use domestic parts to be eligible for the grant, which range from $6.7 million to $22.5 million. In the last 5 years foreign companies' share of the Chinese market has dropped from 79% to 13%, according to Goldman Sachs, with China's efforts to promote Chinese manufacturers. The renewable energy market in China is expected to reach $100 billion by 2020. And wind energy is the fastest growing sector. The effort comes after the US Steelworkers union alleged that China was using import substitution subsidies in violation of WTO rules, in a 5800 page petition. Steelworkers union president, Leo Gerard, says this doesn't address most of the billions of dollars of clean-tech subsidies and other support provided by the Chinese government. Gerard says the goal is not litigation but to put an end to these practices that are trade distorting, and act as a barrier to US exports to China....

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Hillary Clinton narrowly loses the Michigan primary to Bernie Sanders in March 2016, as the Sanders campaign focusses on Clinton's support for trade agreements that hurt American workers and lead to loss of manufacturing jobs. About three fifths of voters in the Michigan primary considered this a major issue. Many less educated younger workers see their job prospects diminish and wages drop with free trade that hurts American manufacturing jobs. Bill Clinton signed the NAFTA agreement with Mexico, and as a member of the Obama administration Clinton supported the Trans Pacific Trade Agreement, later opposing TPP when she left the cabinet. Sentiment against trade that hurts manufacturing jobs in the U.S. is strongest in midwestern states such as Michigan, Ohio and Illinois. This was also a major issue benefitting the Liberals under Justin Trudeau who won in Canada's industrial Ontario province which has suffered hollowing out and loss of manufacturing jobs under the Conservative Harper administration. In the U.S. the issue goes back to the Clinton Administration for two decades. New jobs created by Apple, Google, and other tech companies pale in comparison with the industrial jobs created in another era that benefitted working class families. This issue and high unemployment or under employment, lower wages for working class families, was a major issue in the 2016 U.S. presidential election campaign. Widening wealth disparities, and lack of upward mobility, high tution and healthcare costs for ordinary families, dominated the campaign in the U.S....

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Adam Bryant interviews Satya Nadella, CEO of Microsoft in Feb. 2014. Nadella led the cloud computing effort at Microsoft before becoming CEO in 2014. He is a native of Hyderabad, India, studied electronics and communication engineering at Manipal Institute of Technology, and computer science at the University of Wisconsin. Here Nadella recalls his early leadership experiences. As a bowler on his school's cricket team (similiar to a pitcher in baseball), Nadella was pulled out from a bowling spell when he wasn't having success getting batters out. He recalls the captain bowling to get some outs and then putting Nadella back in, who continued getting wickets at that point. He sees this sports analogy as a leadership experience where the captain was sensitive about keeping Nadella motivated and confident, and giving him an opportunity to try again. He takes more out of this and other experiences in his role at Microsoft- to create energy and genuine commitment in his team, and build a team effort to take advantage of opportunties that present themselves in the future. Nadella makes some interesting observations about the tech business. A $1 million business can seem too small for a large company, but in the tech business driven constantly by innovation, there is the need to pay attention to innovation that starts small. At some point says Nadella an innovation can appear to be a failure, an absolute flop, until it becomes a hit. Leadership has to be able to dig deeper and listen, as small changes can lead to big things. About people Nadella likes to know what people have done that they are most proud of, and what they feel didn't work out or where they failed, and looks for how a person can reflect on his experiences and grow as a result of having had them. A useful point Nadella makes at the end of the interview is that people outlive companies in our rapidly changing society, having a sense of our own mortality within this short duration, gives one a special sense of responsibility. ...

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The system of using performance evaluations for "forced" or "stack" ranking of employees started with Jack Welch at General Electric. Microsoft adopted the system under Ballmer till 2013, when it decided that the need for teamwork was more important and discontinued the practice. Welch used it to get rid of "underperformers" or managers who did not conform to his requirements when he became CEO of General Electric. It was his personal style and way of bringing change to GE. The practice of "forced" ranking increases competition inside the company instead of teamwork, say managers, and leaves a lot to the caprice of individual managers. In December 2013 Ballmer facing criticism from his Board for missing some of the disruptive technologies in the information tech business and falling behind Apple and Google, sought the advice of Alan Mulally of Ford Motor Company. Mulally had to fight entrenched Japanese competitors and pull Ford out of a crisis in which even Ford's logo had been put up as collateral for loans. Meeting for 4 hours on Mercer Island in Seattle Mulally told Ballmer that he focussed on teamwork and simplifying the way Ford did things. Ballmer phased out the "forced" ranking system as one of the last major steps before he leaves Microsoft. In today's environment for tech companies of intense competition worldwide and disruptive technologies without teamwork and employees looking to come up with new and exciting products the future is surely lost. Having the "bottom" 50% of the employees compete for limited positions can be dangerous or suicidal without the dominant position in markets that GE and Microsoft had. It also makes no sense to substitute internal competition and capricious manager behaviours for teamwork. It is the responsibility of managers to do as much as possible to make good hiring decisions, and then motivate and help employees to achieve their best performance with frequent helpful feedback, and to promote teamwork. This is the lesson Ford learned through its crisis and Microsoft is now learning....

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Crude oil or crude world. This book by Peter Maas "Crude World: The Violent Twilight of Oil," shows how places like Nigeria and Equatorial Guinea suffer from the lack of infrastructure and jobs, as the oil industry does not create many jobs and the companies and the ruling classes in these countries are the main beneficiaries. Nigeria's anticorruption official, Nuh Ribadu, is cited in the WSJ, with an estimate of $380 billion of $400 billion in oil revenues in Nigeria over 3 decades being wasted through corruption and misuse of funds, with little money going into infrastructure and jobs. Manufacturing in China, Vietnam, and Malaysia for basic consumer products from textiles to shoes, creates jobs even at low wages, making the people in these countries better off as wages rise. Oil on the other hand creates few jobs and companies do not move upscale manufacturing tech products in the next stage of manufacturing, leaving the people as worse off as before. The margins are thin in manufacturing, whereas much of the oil revenue can be deposited in accounts of influential individuals. Mouwad in the NYT points out 93% of profits go to the government in Nigeria, only 7% to western oil companies. Even in countries which have tried to root out corruption through socialist experiments such as Venezuela and religious parties such as in Iran, the failure to integrate with the globalized economy and extremist policies leads to lack of development and backwardness. This shows that the best way to develop is through emphasis on education, science and technology, building a culture that thrives on modernization and technological advancement over several decades, even if this means starting with basics and continually moving forwards into higher technologies. Japan, South Korea and China moved from shoes and textiles to iPads and smartphones, Japan starting in the 60's, S. Korea in the 80's and China in the 90's. ...

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Twitter, Facebook, Groupon, LinkedIn, Pandora and other names command large valuations. Twitter's curent valuation is estimated at between 8-10 billion dollars. Twitter has sales revenue for 2010 of $45 million, and it had a loss as it invested heavily in data centers and hiring. Estimates of revenue for 2011 are between $100 million and $110 million. Twitter is trying to build its ad revenue with a 20 person sales team headed by Mr Bain, a former Fox Interactive Media president.

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The president of the U.S. Chamber of Commerce China Center says the White House has a supportive community when it comes to getting China to abide by fair rules relating to intellectual property. Mr. Bolton talking to the CEO Council was frank about the U.S. government's efforts to get China to to implement a broad set of reforms. He even called for a show of hands from executives who think its acceptable to live by the situation today which hurts the U.S. when it comes to intellectual property. No one showed their hand. U.S. executives once skeptical about the tariffs from president Trump on Chinese products are now shifting their views on the confrontational approach taken by president Trump on issues of U.S. technology transferred to companies in China that lead to the U.S. losing its technological advantage.

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Why Vietnam is gaining acceptance as a high tech and tech outsourcing hub in Asia after India, China and the Philipines. Wages are lower and Vietnam has a youg labor pool with a focus on math and science in the universities. Intel's decision to build a chip plant in Vietnam and interest from software companies suggests Vietnam will be a site for outsourcing competing with others in Asia. English language skills are a limitation as compared to India and Philipines.

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With about 390 million users smartphone user penetration in India is the second highest after China. WalMart, Amazon are looking for new online customers with large investments. New tech rules from the government require these companies and Google to store data in India. This means companies that store data in servers located all over the world such as Google have to change the way they store Indian data. Under the new regulations in draft form data created by users in India from online sellers, search engines and social media must be stored exclusively in India, with government granted access.

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Because technology spending has been more disciplined and focused on productivity and efficiency gains, the investment has been lower but more effective than in the 3 years leading to the last recession in 2001. At that time it was increasing 12.9% a year leading into the recesson and faced sharp cutbacks leading to a drop of 11% over the next 2 years 2001-2003. By contrast this time the tech spending went up by about 2.8% a year in the last 3 years, according to Gartner, and has delivered solid results at places like American Airlines. Technology spending is likely to hold up and continue moderate increase this year and next as the US enters a recession. At American a fuel efficiency drive starting 2005 including software to come up with best routes, flight paths and baggage loading has saved 96 million gallons a year. Note that spending on computer hardware and software is about half of all capital spending by business.

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Taiwanese engineer, William Wang, who earlier ran a failed computer monitor company Princeton Graphics, started Vizio in 2003 in Irvine, California. He started Vizio as a low priced brand with a focus on high tech HD sets and a supply chain in Taiwan to make HD sets at lower prices. He negotiated agreements with Foxconn and AmTran Technology giving them equity stakes in Vizio. Costco provided shelf space for the early HD sets. Vizio still manages to make 4% in operating margins on $2 billon in revenue with an efficient supply chain. Wang's insight was that televisions would go the way of PC's where lower prices were the norm. Sony Electronics U.S. Division chief, Stan Glasgow, says it is harder to charge premium prices as technology and improving quality rapidly converge in the television industry, similiar to what is happening in PC's. The story of Vizio at the low end, and S. Korean manufacturer Samsung at the high end, is also the story of the decline of Japanese companies in the television business. In 2010 after seven years Vizio passed Sony to become the second largest television brand in the U.S., with sales of 6 million LCD TV's. This is up from 3.6 million in 2008, according to research firm iSuppli....

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China's current account surplus has declined to 2.8% of GDP for 2011 from about 10% in 2007, and will be around 2.3% of GDP in 2012, according to IMF estimates. The U.S. current account deficit is down to 3.1% of GDP from 5.1%. By controlling the exchange rate China was able to keep the competitiveness of its exports, resulting in a five fold increase in exports from 2000 to 2010, according to the IMF. The decline could be temporary say experts, as the the recession in Europe and the U.S. resulted in slowing exports, with its infrastructure buildup sucking in imports of machinery and other goods from the western countries at an accelerated pace with its 2009 stimulus measures. Another reason is that in the last decade China has developed its own high tech and other companies which will now increase exports. IMF forecasts show a pickup in China's trade surplus to 4.25% by 2017. This could be lower if the renminbi is allowed to appreciate. Estimates of appreciation of the renminbi are 8 percent in nominal terms since June 2010 against the dollar. Including inflation, which is higher in China, the renminbi has appreciated by 13% since June 2010. ...

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The French system what works and what does not work compared to the Anglo-Saxon systems of Britain and the USA. Health care works, public transport and high speed rail works, nuclear energy and the energy industry works, education works for small elite universities but fails in the larger system. The large public projects are executed well, and France has done well with its long tradition of the state building infrastructure projects. But when it comes to individual initiative and starting up new companies such as in computers and high tech of that kind, France does not do so well. And the state collects a larger proportion of taxes than in other countries to finance these benefits. France is also good at rule making, which serves it well in controlling the kinds of bubbles that regularly hit the Anglo-Saxon countries. And with 21% of jobs of all workers in France in the public sector and government, with 49% when one includes related sectors protected from economic downturns, the French workers are much better protected than workers in Britain, USA and other countries from economic downturns. Unemployment stays high in upturns and at 8%, and in downturns does not go too far above 8%....

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Spotify is in the same position as Netflix in 2011 with its margins restricted by the fact that most of the major TV content was controlled by a few companies. It broke out of this with its own TV series "House of Cards." The gross margin at Spotify is at 24.5% but it will be hard to bring it up because Spotify is dealing with a few producers of music for licensing deals, the big 3 and Merlin controlling 87% of songs streamed.

Competitor Apple Music has the deep pockets to offer music subscriptions on plans that are minimal cost in the first year. This puts pressure on Spotify with monthly subscriptions dropping to $6.55 or 5.32 euros in 2017 from 6.84 euros in 2015. This pressure on pricing from Apple Music will only grow. Spotify meanwhile has not made profit since its founding.