The corporate culture of Amazon that has created these things. If you learn about this, too, whether you're someone following in the footsteps of Amazon or someone planning to take measures against Amazon, it will be of great help. The 6-page memo created earlier. I believe there'd be quite a lot to learn from this. It's true, when you explain something, there'd be various ways to do it, but it's nice to explain with a sheet of paper or something, right. Actually, the same goes for me. I try and sum up all my materials on a single whiteboard. I try to make sure I sum it all up within this. Recently, I've read some reviews on 'YouTube University', and someone wrote, 'I've thought about it, and I think that guy is amazing for summarizing any book
into a single whiteboard.' It's true. Whether it's a very thick book, or a very thin book, I'm summarizing it all within this box. I'm doing something that makes no sense. But this is a skill I've gained while studying for the university entrance exam. Summarizing any exam, or the scope of any studies into one page before the test. I'd summarize it all into a single page. Then the boundary gets set. Since you need to capture everything in one page, you'd take out all the unnecessary things. You'd only keep the important bits densely. When you do that, you can revise just skimming through it before the test This is how I studied for my entrance exam. The '6-page memo', I recommend it. And the way they create teams is incredible, too. The S-team made up of 18 people around Bezos. It's kind of like trading cards. It feels like there are 18 cards of S-class characters. Because Bezos is so strict, a lot of the employees
at his company quit on short notice. But these 18 people on the S-team are being treated very nicely, so they do not quit. So he has built this very exception S-team, and he's differentiating the treatment so that those 18 people on the S-team never quit. So those laboring at the factory are having a hard time, but these 18 people on the S-team are very satisfied
with how the business is treating them. This is the S-team that Bezos is talking about. Moreover, it's not just the S-team. There's also someone called the shadow. A shadow is someone who, for a set period of time– Bezos would call them over and ask, 'Do you want to be the shadow?' A man who shows each and every action of Bezos. Oh, there'd be women, too, so a man or a woman who shows Bezos's every action and method, how should I put is, like a master and his pupil… He'd send someone like that. And it's a system where, when that shadow grows
to fully install Bezos's way of thinking, the shadow takes action even when Bezos is far away. What's this. Scary, isn't it? It's like an animation, huh, a shadow. There's even an interview of someone who was selected as a shadow. They were working at another post when Bezos suddenly approached them at the restaurant and asked if they'd be a shadow, saying they can feel free to accept or decline, so they thought hard about it, and it felt like being offered a job at Ford, in terms or cars, during the era when cars were starting to sell at an explosive rate. They said they accepted the job, as it felt like being offered a job at Ford. So he's copied the ways of Ford entirely. A shadow had spoken about this episode. Interesting, right? And this shadow system gets expanded more and more, and doesn't let this circulation stop. Each of the 18 people in the S-team has their own shadow, you see. It's sort of like Demon Slayer, isn't it. It's like Jougen no Tsuki, it really is. It feels like Hashira. It seems like they've got this own fictional world. And, what's more, this isn't a single pyramid. There's no point in making an organization like that. The meeting style. I had introduced this once in another lesson, it's the '2 pizza rule' that Bezos has talked about. Say 50 people gather in a conference room and go, 'Alright, let's begin the meeting'. Like Hanzawa Naoki. They feel too far away from the CEO. There's no sense of speed at such meetings. There must only be enough people at a meeting so that 2 pizzas in the middle of the room
would be enough to feed everyone. In other words, it's about 10 people or less. 'A project team cannot be united as one
without consisting of 10 or less people'. 'Each project must be ran with 10 people or less'. This is the '2 pizza rule'. So you make '2 pizzas' in many areas around the company. You'd place the members of the S-team in various '2 pizza' groups so each can take action and move at an incredible speed. But you aren't neglecting them, ultimately, it works because it consists of people who have had
the exclusive ways of Amazon instilled within them. As soon as they deviate from those ways, they get expelled. It's very strict. You could almost say the team is like special forces. So they are building such things. It's truly incredible, isn't it? But after understanding that they've been doing such things, we must know that this can also cause problems. It's this right here, as I've mentioned just now, the light and the dark are too blatantly apparent. Amazon is actually very popular right now. It's surpassed Google and Apple and has been chosen as the number 1 most trusted brand in the USA. Right? It has surpassed Google and Apple. It's because it appears to have prospects. Amazon is number 1 on the brands that are least likely to collapse. That's how deeply this company named Amazon
has infiltrated the Earth. Because they've got quick delivery. Things arrive in the next day. It's visible to us every day, as it has adhered to our daily lives
more closely than Apple or Google. But there are problems on top of this, too. Where there's light, there's also darkness, it's the 'work environment'. The reason people often say there are two sides to it is because it has crushed a huge number of its competing retailers. 'Why visit a store, when you can buy them on Amazon?' The 'Showrooming phenomenon' occurs at a home appliance store, too. It gets used as a showroom. In other words, people visit the digital appliance stores like Bic Camera and go, 'This camera is nice!', 'I like this television!' and then go home to look up on Amazon. When this happens, the stores won't sell a lot of products. They're skipping the process of buying products from a brand, and then selling them again to the consumers. So the online store, which has skipped this process, would be cheaper. It's only natural, we all know about this. So it'd be cheaper to buy from an online direct sales website
than to visit a store. When this happens, the retailers would collapse. The same goes for the bookstores. You still go to the bookstore, right? You skim through them and think, 'This book looks interesting, it looks nice.' You say, 'Thank you!' and you leave and look up on Amazon. This becomes a phenomenon that destroys countless numbers of stores and, at the same time, it removes a lot of job opportunities. But there's also the fact that Amazon is hiring hundreds of thousands,
or tens of millions of people at their factory. So the work environment is becoming harsh. It really gives them a hard time. But even that recruitment may soon be lost due to automation. So robots would be working instead. Same goes for the delivery. The drones are already very advanced, you see. You may think the weight that can be transported
with drones may not be very big. But apparently, the weights of most items are suitable for drone delivery. About 50% to 60% of them. They say drones can delivery about 60%, as they are light. So you can imagine, right? When you've just ordered a pen, and this overpacked pen going 'I'm sorry!' inside the box… You know it, right. Saying 'I'm sorry I'm too small!'… It's light, right. So the day and age where these items will be delivered by drone will come. And people are also talking about autonomous driving these days. 5G, 5G is approaching. Of course, the area that can be connected to 5G is very limited as of now, but what would happen when the 5G radio waves soon get connected
to everything? 5G is about something other than video downloading or radio waves. What we're looking forward to with 5G is autonomous driving. The first thing you're imagining when you hear autonomous driving is probably the future of, 'Huh, then we won't need a driver anymore!' But that's one step below it. First off, what is autonomous driving being supplied for? It's used for transit. It's not used to transport humans, it's used to transport objects. Because, what you're most scared about with autonomous driving is wouldn't there be an accident, wouldn't we get hurt, right. That's right. There are these two facts, when you're loading humans. It's that you mustn't hurt the person inside and that you mustn't hurt the person jumping in front of the car. There are these two facts when you load humans. Then, what if we were to load objects? It becomes simpler. You can just avoid the person who has jumped in front of the car,
even if it means breaking the objects inside. You can just let it hit the guardrail. Then it's alright. There'd be no oppositions, either. Autonomous driving for transporting goods will be executed as a trial and the vehicles will start driving on the road. Once it is proven that it's safe, humans will start riding them. Therefore, depending on how thoroughly we're predicting this future, the next step could change entirely. '5G? Autonomous driving, huh?' is enough. If you're going, '5G? Yay! I'm gonna download videos! Yay!'… the gap between you and someone with a clear vision
would widen overwhelmingly. 'So there's a change in goods that get delivered
through autonomous driving?' 'Then I should try doing this business.' The key lies in whether you're able to take action as such. When the delivery, and the transport within the factory all get automated through automation, where will the labor go? This is the problem. We're getting some widely varied opinions. Moreover, AWS. The greenhouse gas emitted from large data centers or factories. There's also the discourse on how they'll take responsibility
for this aspect. But the biggest problem right now. What would be the biggest problem? It really is the talk of the town. It's this right here, original products. It's the issue of whether or not this violates the antitrust law. It's the issue of whether or not this violates the antitrust law. Most of you probably aren't aware of how this antitrust law is being used. However, you probably know by instinct that 'We must prevent a business from becoming monopoly just because it's large!' But when you learn accurately what this actually means, it's become easier to read the news or the newspapers from now on. You'll realize what it means, and you'll read the news. What does this mean? Many politicians in the USA are claiming that Amazon is causing a competitive inhibition. What are they inhibiting? Amazon is a platform. It's like a department store. They make offers to a lot of retailers to launch their stores. But they're collecting all the data with AI. What would happen then? They could clearly see the products that sell well. 'What sells well?' 'Among the clothes, this product sells well.' 'Among the cameras, this product sells well.' 'I see, people buy these things, too.' When this happens, what would become possible? They'd launch the product that sells well as an original product. An Amazon original product, and, in most cases, they'd also get to know the rough production cost
of the product, right? Then they can produce it at a lower cost. It's fine if they only produce it at a lower cost. For instance, I don't know, but with jackets, with jackets, a type of a jacket… I don't know, but let's say this pink jacket sells well. I don't know, we'll go with a pink jacket for today. Similar to the dumplings. 'These pink jackets sell well.' 'Alright, let's make some pink jackets!' What would happen then? When you look up 'pink' or 'jacket', they'd get to show the Amazon original product on top. What happens then? When it's a little cheaper than the pink jacket that has been selling well, and the search results show it right on top? We'd obviously end up buying that one, right? Since it's fine, as long as it's a pink jacket. Since we just want to wear a pink jacket to the party. For those people, if it pops up on top and is a little cheaper,
they'd come to buy it. Is it okay for them to do this? A lot of these cases are being reported. So they're in a position where they can collect data
on the products that sell well, while simultaneously selling products themselves. Being a platformer and a contents maker at the same time, and taking it further and making use of data. 'Isn't that competitive inhibition?' 'Are they allowed to do those things?' This is it. But this is an incredibly… it's an incredibly difficult issue. But aren't there many similar cases? At the convenience stores, next to this delicious milk, you see things like the 7-Eleven original milk, right? Which one's cheaper? The 7-Eleven milk would be cheaper, you see. You take a look at this popular snack,
and there's this similar type of snack, too. 'It's the Lawson original!' That one's gonna be cheaper, you see. It's the same when you apply it to the apparel select shops. 'Whoa, a BEAMS original T-shirt!' The BEAMS original would be a little cheaper. So it's inevitable that some would say it's the same method
used by select shops and convenience stores, right? A platformer plays the role of a select shop and then launches original products
after reading the trends through it. It's a method that is used anywhere. It's inevitable that some would say,
'Why shouldn't Amazon use this method?' But because Amazon is on a world scale, and it isn't restricted by genre. What if they applied that method to all products,
instead of being limited to genres like T-shirts and snacks? What should we then do? An image comes to mind. It feels like the era of Amazon's sole victory is approaching. What if this AI fly wheel method disturbs all products, disturbs all services, and Amazon gathers all data and ends up copying all the products that sell well? The same goes for television shows. It may be the same for music, too. What if they gather data on all products and create a copy product for every product? What if, even if they don't sell well now, they gradually improve quality and surpass everything? 'Won't we end up buying everything on Amazon?' This is what people are predicting. Then let's move on to this 'forecast'. It's about what will happen to Amazon from now on. And it's about what will happen to us. Antitrust laws. The debate on whether or not it could be applied in real life
is written in this book. It states that the antitrust laws we have at the moment won't be applicable to it. Why? In many cases, an antitrust law is when there are few companies. It's called monopoly, or oligopoly. When only one company is selling this product, or when only three companies are selling this product, the prices may go up unfairly, right? 'You all need water, right?' When they ask, 'You all need electricity, right?' we'd say, 'We need electricity', right? But when only one company is selling it, no matter how much they rip us off, going 'Alright, here's the price!' we'd end up going, 'It's so expensive, but they only sell it here…' Or when there are about three companies, they'd go, 'We don't need to sell it at a low price, right?' 'Let's all sell it at 50 thousand yen.', 'Let's all sell this 300 yen product at 50 thousand yen'. When they all go, 'It's 50 thousand yen!', 'It's 50 thousand yen!',
'It's 50 thousand yen!', we'd go, 'Whoa!!'… This is the state that harms the interest of the consumers resulting due to monopoly or oligopoly. But what's going on with Amazon? They sell at a lower price than the other sellers. They aren't harming the interest of the consumers. This is where their strict customer first principle comes in. 'We're not free riding!' Even when accused of free riding with these original products, Amazon is denying it till the end. 'No, it's only once in a while', they say. 'All we did was very occasionally produce
some similar pink jackets! Right?' This is what they're saying. Amazon is the one with the data, so it's not our business to know how they use it, or how they analyze it. Then the consumers can have a better shopping experience, so this may be a slightly different issue from the antitrust laws. This is what some people are saying. What competitive inhibition means is that, when three companies are selling a 500 yen product
at 50 thousand yen, the consumers' interests aren't being secured
through an adequate level of competition, right. This is competitive inhibition in that one company is so strong that it is killing off the other companies. Therefore, this antitrust law probably isn't applicable, is what people are saying. However! This book explains that this doesn't mean it is invincible. Actually, you'll get in big trouble if you fight against the government. Laws depend on how the government interpret them freely. Therefore, if they reach a state that contradicts the interest
of the government, in those cases, they may be restrained. Therefore, we cannot know what kinds of states they may face yet. Although, they say this company, Amazon, is as close as can be to the government in that respect, too. Unlike the companies like Google. The CIA or the Department of Defense are borrowing this AWS, too. So it's a company that the nation must treat very nicely. Actually, Bezos's grandfather, who has had a great influence on him, is said to have been involved with the government. Therefore, some say that he had benefitted a lot
from the government's power. 'The government? It's strong'. He knows this well, so he avoids behaving in a way
that contradicts the government. Let's say a company like Facebook creates the cryptocurrency 'Libra'. In this case, they may come in contact with the government. If they say the right to control currency is solely with the government, various issues would arise, and they'd collapse in the end. The government would destroy what goes against the nation's interest, but if they don't do anything like that, they may become invincible. Then in which direction would this invincible Amazon head? It doesn't stay in one place. Videos, entertainment, music, home appliances, right? Delivery, and even fresh food. Amazon has also acquired the supermarket called Whole Foods. Why is that? It's called Amazon Fresh. Have you not heard of it? Has anyone tried making an order in this time of COVID? They gather up and deliver fresh food. The reviews aren't great for this yet. Compared to the existing Amazon products, there are lots of complaints about the minimum price or the quality. But as they experiment it in the USA right now, they'd improvise and make changes right away, going 'That failed, okay, we've built data!' So they've acquired the supermarket called Whole Foods and they've turned the supermarket itself into an Amazon store. So they deliver from the supermarket. They just need to acquire the whole supermarket, right? 'A supermarket is not a retailer.' 'It's our storage!' That's where it begins. So they are doing things like these, too. So fresh food, music, entertainment, home appliances. And transportation, data, cloud, everything. Moreover, wouldn't he target ads, pharmaceutics,
bank and insurance next? This is what people are saying. The advertising industry, the pharmaceutical industry. The pharmaceutical industry sounds familiar to you, too, right. Huawei Watch and Apply Watch have both introduced 'healthcare', right. This is a vital issue. Moreover, banks. How will it proceed? Organizations like Facebook are also trying to create
a cryptocurrency, you see. And insurance. With insurance, too, various types of insurance have been created while avoiding regulations, so you sometimes come across the insurance products
that make you think, 'Even this exists?' So these things will be made possible, too. As they keep expanding. So those in an industry that has no link to Amazon as of now. It's merely that Amazon has yet to expand into that area. That's what this book is saying. They're merely yet to be discovered by Bezos. When Bezos locks on, don't try and run away. That's what's written in the book. When your industry gets locked on by Bezos, or, even if it doesn't, if you want to survive
until the next generation, you must defeat the large IT innovation business
that's got big data and AI. If you've understood the business, and are thinking
about how you should move forth, The 4 principles of survival. This is what the book passes on right at the end. Right? There are the 4 principles of survival. How to dodge the bullet when you've been targeted by Bezos
in this 'era of Amazon's sole victory'. This is telling us to go for Amazon's weak points. Even the incredible business, Amazon, has weak points. What could that be? Number one. Weakness. Go for its weakness. Go for its weakness. And accept Amazon gracefully. It is important to know these two things. One of these two things is the integration of the online and the offline. So, offline– by offline, we're referring to the physical stores. Like retailers and service providers. There are various types. So, in terms of comedy shows, offline means having the guests over at the theater and doing comedy routines. Contrarily, in the post-COVID times, they're currently selling online tickets on LUMINE the YOSHIMOTO, and they've gathered an audience with online tickets for the live show. This is what everyone should do. There will be a division between the companies that are adopting the ways to show a live show to an online audience, and not just to a live audience, and the companies that aren't. This division will take place for sure. 'Do you sell tickets online for the comedy live show?' It's not just comedy, we must take a step forward for all the various things
that have been done offline until now. If you're thinking, 'It'll be fine, once COVID is gone!', you can never win that way. Because Amazon is the sole victor in this era
where we're coexisting with COVID. It'll become even more successful after the COVID times. So this is it. The integration of the online and the offline. Nike is a company that's doing this very well. Apparently, Nike is improving customer satisfaction by connecting the selection of products online and the actual shopping experience at the stores very effectively. When you do this and that online, and register on the app, the gold members on the app can visit the VIP room
at the stores, and so on. They'd let people choose their sneakers this way, or enable them to obtain limited edition products. They're making it so the avid users of the online or the app services can be integrated more easily offline than the rest. You could say it's all types of sales. You can't beat Bezos by waiting for the offline aspect to come back. And those only using an online platform
must consider the offline properly, too. Anyway, the point is that this integration is vital. Because, Amazon itself has launched Amazon Go, too. That's right, they've drilled a hole into the offline. Acquiring Whole Foods, or launching Amazon Go signify that they're shedding off the image
of the online website store entirely. They've understood that moving into the offline speeds up the circulation of the offline and the online. We need to accept this, too. It's fine to do it within a minor flow. It's fine to do it with something personal, too. When you look, that's what I'm doing, too. I'm moving forward by integrating the offline and the online. YouTube, right? YouTube University. This is online. But when I'm actually filming the video lectures, the members of our online salon join us. This is offline. I film that and distribute it, and I do live broadcasts, too. This is online. The same goes for Win Win Wiiin. I'm distributing it on YouTube. On YouTube, the– it's not Live, what was it called? On the service called YouTube Premium, I link two channels, and then I link three channels. But this lecture room, with about 100 people in the audience,
takes place offline. And the reason they've come to this offline lecture is because they've registered on the online salon. It's the integration of the offline and the online. The mock-up Bezos. I'm making an effort. There aren't any celebrities doing it this way, right? This system of creating a large-scale show on YouTube and making people sign up on the online salon to watch it. No one's doing it this way, right? I'm saying they need to do these things. One more thing. Products that you can only buy there. You can't beat Amazon with the products
that can be bought on Amazon. Since it's possible to look them up. So they lose, because the appliances sold at an electronics store
and the ones sold on Amazon are the same. So we should sell things you can't buy on it. The electronics store Best Buy has actually developed this strategy. When they realized that the customers only use them as a showroom
and make the actual purchase on Amazon, they changed their product lineup in one go. In other words, they have gathered only the products that people are better off buying at the store
than on Amazon. What kinds of things are they? Things that are bothersome to install. Or things that require an explanation on the structure. So, if it's simple for anyone to control, but things that require an assembly, or some wiring work, or things that require a commentary. With these things, you come to ask the shop assistants, right. 'How do you use this?' 'Oh, when you press this button, this happens.' 'Oh, I see!' This type of customer support, and then the assembly, too. They've only stocked the product lines that require direct contact. That's how they've differentiated themselves from Amazon. Or. Aside from this service route, there's the luxury route. For instance, a luxury brand watch. It's a bit scary to buy things like a Cartier watch
by looking up on Amazon, right. Actually, you wouldn't get scammed, and the products are increasing, too. Bezos is also trying to sell luxury lines. But what Bezos has been valuing until now are low cost, low price and options. He's circulating these three things incessantly. Cheaper, and faster. Because this image is so strong, it feels a little distant from a very luxurious and personalized customer experience. We must target this weakness effectively. So, the brands that carefully deliver to their customers the luxurious and expensive things that you wouldn't find easily on Amazon can survive, too. So, either highly specializing your services, or highly specializing your branding. These are the ways you can use to dodge Amazon. Another thing, technology, social media. You might be thinking, 'But Amazon is technology, too.' The technology that Amazon isn't employing. Something advanced. For instance, I hear there's this beauty brand that sells very well. This beauty brand has independently developed the technology of scanning women's skins, and they tell them about toning their skins adequately according to their skin tones or textures,
or make and deliver customized orders of skincare products like toners with ingredients
that suit their skin types. These kinds of things aren't being done by Amazon. They can't scan people's entire bodies to provide skincare for them. So there's the option of specializing your technology
by investing in the facilities of a genre that is too niche for Amazon to invest in, too. Or social media. A large social media outside of the platform of Amazon. Like Instagram, or YouTube. Gaining a large number of fans, or customers,
on these social media platforms. They say these things are vital, too. The areas untapped by Amazon, or, in other words,
the very tiny niche markets. Since you'd come in contact with them in most areas,
unless it's a niche market. And lastly, social mission. This is something really interesting. Among the brands gaining popularity these days,
there's this eyeglasses brand. There's this campaign being ran by this eyeglasses brand. When you buy a pair of glasses, the same pair gets donated to a poor developing country. It's a very interesting service, isn't it? When you buy a pair, you can help somebody else. It's a form of donation. When you do that, you will get a higher level of satisfaction
from doing something good. What this means is, as Bezos is currently getting a lot of social criticisms, he is slightly thin, in terms of the social aspect. Although, Bezos has the objective of advancing into space. So Bezos probably believes that he is doing what's best for the humankind. He's striving to advance the humankind into space,
but people all fail to understand that so they're calling into question the things like work environment and CO2. Therefore, if you target the fact that he lacks this image and appeal to people with your social mission,
stating that it benefits the public, this product will attract people who aren't big fans of Amazon. Amazon's weaknesses, numbers 2, 3 and 4, and Amazon's strength, number 1. The book writes that the combination of these is the 4 principles of survival. Doing just one of these would be effective, too, but combining three or four of these may enable you to survive. That's for sure, I certainly can see it, too. A product you can only buy from there… So, if I make the same videos that the other YouTubers are making, I can't grow very much, even if it's a celebrity YouTube channel. So this celebrity has started out on YouTube. The channel won't grow if the only videos it's got
are imitations of other YouTubers. Since they aren't interesting, as they've all been done
by other YouTubers. Though they often start out because they feel like they should,
amidst all the pro YouTubers. I do something that the other YouTubers haven't done. Adding cuts to all the superimposed texts, it's what the other YouTubers do. All those other things, too, I can't do them. First off, I chat with you. I'm going in reverse. It's the reverse route. Let's integrate the online and the offline and move forth by integrating more of the online, than as an entertainer. Let's sell the entertainer that you can only buy from there,
which is impossible to do as a YouTuber. Let's make a proper use of social media. Let's create an online salon on Facebook to link it to YouTube. Let's move forward by doing these things. Investing in technology, and even a social mission! This is me, yes. A social mission, delivering the message that learning is fun, that studying is fun is the one mission I have, I believe. 'Don't YouTubers all post dangerous videos?' 'I feel iffy about showing it to my kids…', some parents may say, but if there are parents out there who say they feel safe
about showing my videos to their kids, I would be delighted. So I'd like to specialize further with this part
about the 4 principles of survival as I move forth. With you, too, you may feel that this wouldn't affect you any time soon. But even in your sector, or the business you'd like to do, you won't face difficulties if you understand these aspects fully. It may not have affected you yet, but before you know it, you'll be targeted by Bezos! Then, bye! Online community, PROGRESS. [Nakata Atsuhiko's online salon, PROGRESS, 3,700 members, 980 yen/month]
[Watch YouTube University] [Introduction (self-introduction of the members)] [Theater (uploading the members' videos)] [TV (live broadcasts of the members)] [Monthly Zoom exchange] [Home Room (daily live broadcasts)] People can be anything, starting from whenever. You're next.