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Negotiations 101: A Deep Dive into Negotiations and Interview with Professor Burt De Mill

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Mariia Kashirina

Myths about negotiations

While the term “negotiation” rolls off most students’ tongues, its true meaning often remains unknown. Many anticipate a verbal clash, each side stubbornly pulling until one wins. However, there is so much more to the  process than meets the eye.

Negotiation is far more complex than a mere exchange of offers and counteroffers; it is an intricate art form that requires a deep understanding of human behaviour, strategic thinking, and communication skills. The ultimate goal is to find a resolution that all parties can agree upon, ensuring that everyone involved feels satisfied with the outcome. This delicate balancing act involves navigating through interests, needs, and priorities to reach a consensus that is mutually beneficial, highlighting the importance of negotiation as a critical skill in both personal and professional realms.

While individuals may be persuaded to act selfishly or employ hardball tactics, the benefits are maximised when negotiations are performed in an integrative way. It is about understanding the other party’s needs, building bridges instead of burning them and crafting agreements that benefit everyone involved.

Another myth about negotiations is that you are born with these skills. The truth is that even if there are some naturally good negotiators, anyone can become successful in it. Mastering the art of negotiation is indeed achievable, however it demands significant dedication to learning and rigorous training.

Why can everyone benefit from negotiation?

Usually, the term “negotiation” is mostly associated with business and legal professionals or even diplomats. However, these skills can benefit anyone as we are all negotiating every day. Consider the dynamics of family decision-making, a familiar setting where negotiation plays a crucial role, whether it is in distributing household chores, deciding on the purchase of a car, or navigating through conflicts. These everyday negotiations, while seemingly mundane, lay the groundwork for honing negotiation skills that are applicable in more consequential scenarios. Now, extend this concept to situations with far-reaching implications on your life—negotiating a job offer, buying a house, or resolving significant family disputes.

Negotiating salary and benefits is common when applying for a job or during performance reviews. Adept negotiation can mean the difference between landing your dream job with a competitive salary package or settling for less than you are worth. It can empower you to advocate for yourself, articulate your value, and secure favourable terms in various transactions. 

Wouldn’t you want to become a negotiation genius and master the art of navigating these situations with confidence and success? If so, this article is for you.

Negotiation basics

According to negotiation courses and books, the process consists of five stages – preparation and planning; definition of ground rules; clarification and justification; bargaining and problem-solving; closure and implementation. Let’s review each stage, using an example of job offer negotiation.

  1. Preparation and planning

Knowledge is power, especially in negotiations. To secure the best deal, thorough preparation is crucial. At this stage, it is imperative to define several key elements:

  • Target Point: Your ideal outcome. Aim high! In a salary negotiation, it could be 10-15% above the industry average.
  • Reservation Value (RV): Your “walk away” point. This is the minimum you will accept (e.g., current salary in a salary negotiation).
  • Best Alternative to a Negotiated Agreement (BATNA): Your plan B if the negotiation fails (e.g., another job offer).
  • Worst Alternative to a Negotiated Agreement (WATNA): Your least desirable outcome (e.g., unemployment).
  • Zone Of Possible Agreement (ZOPA): The range between your RV and the other party’s RV. This is where a mutually beneficial agreement lives.

Example: Picture a salary negotiation. Your RV is $2,000 (your current pay). You suspect the employer’s RV is their budget, say $3,000. The ZOPA lies between $2,000 and $3,000 – your negotiation playground.

While pinpointing the other party’s RV is tricky, meticulous preparation is key. By understanding these concepts and gathering relevant information (industry salary data, company budget info), you will confidently navigate the negotiation and secure the outcome you deserve. Understanding the priorities of the opposing party is crucial. By identifying what they value, you can strategically offer concessions that, while not critically important to you, hold significant value for them. This approach facilitates a negotiation outcome that is optimally beneficial for all involved

  1. Definition of ground rules

Before diving into the negotiation, establishing clear ground rules creates a productive and respectful environment for everyone involved. This saves time and ensures your discussions stay focused on achieving a mutually beneficial outcome. These ground rules may encompass basic logistical details such as the meeting location and time yet extend to more significant aspects, particularly in salary negotiations. For instance, considerations might include establishing the timeline for accepting offers, defining the parameters of the initial offer to be presented by the organisation, and outlining the comprehensive list of topics to be addressed beyond just salary, such as bonuses, vacation time, and additional benefits.

In essence, the specifics of these ground rules are tailored to the negotiation type and the preferences of the involved parties. By setting these guidelines beforehand, all parties can approach the negotiation process with clarity and mutual understanding.

  1. Clarification and justification

In this stage, both parties can clearly communicate their positions and delve into specific points of discussion. Each party thoroughly discusses their stance, offering explanations and justifications for their requests in an informative manner. Prioritising points of interest based on their significance helps address major issues first.

A key element at this stage is setting an anchor point, which is essentially the initial proposal. This acts as a benchmark that shapes the counterpart’s expectations. Particularly in situations where one party is unsure about what is fair, they tend to gravitate towards any concrete figure that mitigates their ambiguity. It is vital to acknowledge that the anchor often benefits the proposer, usually surpassing their actual target. Therefore, it is wise to refrain from immediately accepting the initial offer.

Whether making a first offer or not, it is essential to substantiate and justify each proposition with evidence. This often involves referencing precedents and objective criteria, such as relevant experience, industry norms, education level, or cost of living in salary negotiations. Therefore, when unsure about what offer to make, it is essential to consider the highest amount you can logically defend.

  1. Bargaining and problem-solving

In the bargaining and problem-solving phase, the focus shifts to collaboratively forging an agreement, a process that entails tackling particular disagreements and fine-tuning minor aspects. This stage features the strategy of logrolling, wherein concessions are exchanged in a manner that enhances both the relationship and the final agreement.

For example, this phase might involve you and the HR department negotiating the terms of a job offer. It is vital to frame any concessions as part of a quid-pro-quo arrangement, indicating that these concessions are contingent upon reciprocation. It is advantageous to negotiate on multiple fronts simultaneously and to probe deeply to grasp the other party’s fundamental interests and motivations.

  1. Closure and implementation

At the conclusion of the negotiation process, the involved parties consolidate their agreement and finalise the specifics, effectively bringing the discussions to an end. This often requires formalisation through concrete actions such as signing a document, exchanging a handshake, or entering into a legally binding contract. Furthermore, the parties outline the logistical aspects of the agreement’s implementation, detailing the when, where, and how of executing the agreed-upon terms. Should the parties find themselves at an impasse, unable to secure an initial agreement, they may adjourn and reconvene the negotiations at a later date for further deliberation and exploration of potential solutions.

Effective Salary Negotiation Tips

Familiarity with the stages of the negotiation process empowers novice negotiators by providing a structured framework for strategy development. However, mastering negotiation entails more than just understanding the basics. Let’s delve into specific tips and strategies tailored to help students and graduates negotiate effectively.

The famous book “Negotiation Genius” written by two leaders in executive education at Harvard Business, Deepak Malhotra, and M. H. Bazerman offers 15 essential rules for salary negotiations. Following this advice will allow you to boost your confidence in the negotiation process and achieve your best outcome (Malhotra, 2017). 

  • Don’t underestimate the importance of likability.

To increase the chances that the other side will seek to get you a better offer, it is crucial to try to win over the other party with likability. This includes asking for what you deserve without seeming ungrateful, addressing offer shortcomings without appearing petty, and being persistent without becoming annoying. To refine the art of likability, the authors recommend practising interviews with friends and gauging how others perceive your approach.

  • Help them understand why you deserve what you are requesting.

Justification is critical to ensuring your counterparty believes you deserve what you want. Simply stating a desire, like a 10% salary increase, isn’t sufficient. Explain why – citing consistent excellent performance reviews, extensive experience, etc. If you can’t justify your demands, refrain from making them. Balancing likability with demonstrating value is crucial; asserting your worth can backfire if not communicated tactfully.

  • Make it clear they can get you.

When negotiating for a better offer, like salary, ensure genuine interest in the company. Excessive emphasis on other opportunities may signal disinterest, deterring the employer from making efforts. If mentioning other offers, clearly outline conditions under which you would decline them and proceed with the current negotiation.

  • Understand the person across the table.

The authors say, “Companies don’t negotiate; people do.” To succeed in negotiation, it is crucial to grasp the underlying interests and concerns of the person across the table. Negotiating with a future boss differs significantly from negotiating with HR. HR may be bound by precedent due to hiring responsibilities for multiple roles, while a boss may advocate for special requests benefiting directly from your joining. Adapting your strategy and approach to the specific individual you are negotiating with is essential.

  • Understand their constraints.

Even if your counterpart likes you and believes you deserve your request, they might still be unable to meet it due to rigid constraints like salary caps. Your task is to identify their areas of flexibility and rigidity. For instance, you can discern their constraints by asking questions such as “Could you elaborate on your salary structure?” Once you grasp their limitations, you can negotiate for other benefits like signing bonuses, start times, or vacation days, which the company may be more open to providing, making the deal more appealing.

  • Be prepared for tough questions.

How do you respond to questions like, “Do you have any other offers?” or “If we offer you a position tomorrow, will you accept?” Being unprepared for such queries could lead to missteps, reducing your chances. It is essential to anticipate and prepare for tough questions that might catch you off guard, make you uncomfortable, or reveal weaknesses. Your aim is to answer truthfully while still appearing appealing to the employer and maintaining bargaining power. With advanced consideration of addressing challenging questions, you are less likely to compromise on these objectives.

  • Focus on the questioner’s intent, not on the question.

Often, a challenging question stems from intent. For example, when an employer asks if you would accept an offer immediately, they might simply want to see your enthusiasm for the job. Don’t jump to negative assumptions if you are uncomfortable with the question. Instead, address what you believe the intent is or seek clarification on the problem the interviewer is trying to address. By engaging in genuine conversation and showing willingness to help resolve any concerns, you and the interviewer will benefit.

  • Consider the whole deal.

Negotiating a job offer is often equated with negotiating salary, but it is crucial not to fixate solely on money. Instead, consider the value of the entire package: responsibilities, location, travel, work hour flexibility, growth opportunities, perks, educational support, and more. Reflect not only on how you want to be rewarded but also when.

  • Negotiate multiple issues simultaneously, not serially.

When negotiating changes to an offer, it is often best to present all your concerns at once rather than piecemeal. Requesting multiple changes one by one can create the impression that each adjustment will come at cost, potentially limiting your leverage. Additionally, if you have multiple requests, indicate their relative importance to you to ensure your priorities are clear. This approach helps avoid the risk of the other party addressing only the easiest requests and prematurely concluding the negotiation.

  • Don’t negotiate just to negotiate.

While logrolling, or trading concessions, is valuable in negotiations, it is crucial not to nitpick over every detail. Pushing too hard for minor gains can sour relationships and hinder future negotiations with the company. Prioritise what truly matters to you, negotiate accordingly, and reflect on your long-term objectives.

  • Think through the timing of offers.

Confirming an early job offer can provide a sense of security, especially amidst a competitive job market. However, it can also present challenges, as companies expect prompt responses. To evaluate multiple opportunities effectively, aim to receive offers simultaneously. Adjust the pace of the hiring process with each employer to synchronise your options. Be mindful not to delay excessively or apply too much pressure, which may lead the company to consider other candidates. Subtle strategies, such as requesting a later interview, can help manage this balance effectively.

  • Avoid, ignore, or downplay ultimatums of any kind.

Avoid issuing ultimatums in negotiations, as they can be off-putting and counterproductive. Sometimes, they’re unintentional, stemming from a desire to assert strength or frustration. Similarly, if faced with an ultimatum, consider ignoring it, as the issuer may retract it to salvage the deal without losing face. Instead of dwelling on ultimatums, redirect the conversation towards exploring alternative solutions or compromises. Reframing the discussion and not acknowledging the ultimatum prevents the other party from becoming entrenched in their position. If the ultimatum holds weight, it will become apparent over time.

  • Remember, they are not out to get you.

Tough negotiations over salary or delays in receiving a formal offer might create the impression that potential employers are out to get you. However, if you have progressed far in the process, it is likely they value you and aim to maintain a positive relationship. Resistance to specific issues may stem from constraints you are unaware of. Stay engaged, but exercise patience. If you are feeling impatient, refrain from contacting in frustration. Instead, seek clarification on timing and inquire about any assistance you can provide to expedite the process.

  • Stay at the table.

Authors advise remembering that what may seem non-negotiable today could become negotiable tomorrow. Over time, interests and constraints often change. When someone declines a request, it usually means “No—for now, given the present circumstances.” It is essential to stay open to ongoing dialogue and to encourage others to revisit unresolved issues.

  • Maintain a sense of perspective.

Ultimately, the most crucial aspect to consider is excelling in negotiations and ensuring you are in the right negotiation. Factors beyond the negotiation itself heavily influence your satisfaction. Industry, role, career path, and day-to-day environment significantly impact your overall happiness compared to the specifics of an offer. While these negotiation strategies are valuable, they should only be applied after a comprehensive job search aimed at aligning your career path with your goals and aspirations.

Gaining a Deeper Understanding of Negotiations with Professor Burt De Mill

Professor De Mill is a 15-year CLIA/CAP-certified clinical diagnostics industry veteran with a distinguished track record of product launches and commercial success at numerous early-stage companies. 

He currently teaches undergraduate courses in Marketing, Business Ethics & Corporate Social Responsibility, and his passionate Negotiation class at the Rady School of Management. His extensive experience negotiating contracts and business deals fuels his engaging approach to teaching.

He believes negotiation is a valuable life skill and teaches students to uncover underlying interests beyond stated positions to achieve mutually beneficial outcomes in both negotiations and life. Professor De Mill’s popular Negotiation class consistently receives high praise for its effectiveness, with students reporting significant progress in mastering negotiation skills.

Exclusively for Trinity Business Review, Professor De Mill has agreed to answer the most pressing questions many students have regarding negotiations. 

What has been the most challenging negotiation you have had in your career?

Professor De Mill’s most challenging negotiation involved a supply agreement renewal with AMGEN, a major pharmaceutical company. His company was AMGEN’s primary supplier for a critical product, but AMGEN was dissatisfied with both service and price following a recent increase.

The negotiation involved a consortium from AMGEN, including the purchasing agent, VPs of Manufacturing and Quality, and a Senior VP. This complex group employed aggressive tactics, including threats to switch suppliers and brinkmanship. The deal value was significant, nearing $10 million.

Professor De Mill faced a challenging balance: securing a price increase while retaining AMGEN’s business and building a stronger relationship.

His key strategy involved expanding the “pie” of value rather than focusing solely on price. He focused on shared information and goals by informing his own heads of Manufacturing and Quality about the negotiation’s parameters and goals and encouraging them to build rapport with their AMGEN counterparts.

As a result, Professor De Mill secured AMGEN’s agreement to provide support for quality issues they were having, grant access to future AMGEN products, and establish annual summits for ongoing collaboration. 

What practical strategies can individuals employ to overcome insecurities and anxiety during negotiations?

Professor De Mill parallels athletes like Patrick Mahomes and successful negotiators. Just as Mahomes performs exceptionally under pressure because of extensive practice, the more you prepare for a negotiation, the more confident you become. Anticipate potential scenarios, plan your responses, and gather relevant information to feel comfortable with the situation.

Additionally, recognizing your emotional triggers is crucial. Knowing your “tipping point” allows you to proactively manage your emotions and avoid losing your cool. Don’t be afraid to take a short break during the negotiation. This isn’t a sign of weakness; it is a chance to collect yourself, re-evaluate your position, and approach the conversation with a clear head. Taking a few minutes to breathe, gather your notes, and refocus can significantly improve your negotiating abilities and prevent you from making decisions based solely on emotion.

Combining thorough preparation with emotional self-awareness allows you to approach negotiations with greater confidence and clarity, ultimately achieving better outcomes.

What’s the most effective method for beginners to prepare for engaging in the negotiation process?

Individuals new to negotiation can leverage everyday situations as valuable practice opportunities. Professor De Mill encourages viewing everyday decisions made with others as negotiation scenarios since, almost every time, there is a valuable lesson learnt. Whether choosing a restaurant, planning a vacation, or even making household decisions, each interaction can become a training ground for negotiation skills. This approach allows you to gain experience and confidence in a low-stakes environment, preparing you for more formal negotiation settings in the future.

What are your personal strategies or rituals to mentally prepare yourself going into \ a negotiation?

Professor De Mill emphasises the importance of self-awareness and controlled communication in preparing for negotiations. Recognizing this, he mentions two approaches: slowing down the negotiation or disengaging. By deliberately slowing down the counterpart, he slows the negotiation itself, creating space for clear thinking and avoiding impulsiveness for both him and the other party. Pausing allows him to gather his thoughts, assess the situation, and respond thoughtfully instead of reacting emotionally. Additionally, he suggests focusing on the issue at hand and reminding yourself that the disagreement is with the topic, not the individual. This helps maintain a professional and respectful demeanour throughout the negotiation process.

Any advice on how to deal with very competitive, win-or-lose negotiators?

Impasses are likely when dealing with a distributive negotiator who sees negotiations as a zero-sum game. Accept that these roadblocks may be temporary, and conditions could change. Remember, no deal is better than a bad deal.

To navigate this dynamic, focus on building a relationship with the distributive negotiator. Once they trust you, they may become more collaborative. To earn their trust, find ways to create value by offering concessions that feed their ego. They won’t yield until they feel they’ve won, so understanding their unique perception of value is critical. This may involve increasing the size of the pie by offering something that matters greatly to them.

How can individuals effectively develop a mindset that prioritises understanding the other party’s perspective in negotiations?

Developing a mindset that prioritises understanding the other party’s perspective in negotiations requires a shift in focus from immediate gains to long-term value creation. While it may seem counterintuitive to make concessions initially, Professor De Mill emphasises the importance of patience and trust.

De Mill suggests that skilled negotiators find ways to create value for the other party if the conversation is productive. This doesn’t guarantee immediate success but increases the chances of reaching a mutually beneficial outcome. Remember, even if an impasse is encountered, a patient and understanding approach fosters trust, increasing the likelihood of value creation in the future.

How can students effectively prepare for job offer negotiations?

Professor De Mill believes that negotiating a job offer goes beyond just salary. While it is important, consider your second and third priorities like learning opportunities, work-life balance, or professional development. Identifying these broader needs makes you a more creative negotiator with a more comprehensive range of options to discuss.

Research the company and past employees to understand their values and typical offers. This might reveal benefits like educational aid, transportation, meals, or gym memberships that hold significant value for you while having minimal cost for the company. Think about incorporating these into your negotiation strategy.

Finally, do not be discouraged by a lack of experience. If the company interviewed you, they see your potential. Negotiating your worth shows confidence and initiative. Remember, it is not just about the first job; it is about your long-term career journey.

What should be avoided during a job offer negotiation?

In job offer negotiations, avoiding using fake BATNAs (Best Alternative to a Negotiated Agreement) is crucial. Claiming to have better offers from other companies when you don’t can backfire. If you are caught lying about having higher offers, the employer might simply tell you to take the job. Remember, the business community is interconnected, and word travels fast. Dishonesty in negotiations can harm your reputation and future opportunities.

Instead, negotiate in good faith, being sincere about your intentions and expectations. Know your worth and what matters most to you in a job. Consider factors beyond salary, such as opportunities for advancement, work-life balance, or remote work options. Reflect on what you truly want from the position before entering negotiations. Being upfront and honest while advocating for your needs and priorities is key to successful negotiation outcomes.

In conclusion, as we have explored the fundamentals of negotiation in this article and gained insights from Professor Burt De Mill, it is evident that negotiation transcends mere transactional exchanges negotiation transcends simple transactional interactions – it is a complex, multifaceted process shaped by elements like communication, psychology, and strategic planning. While we have covered essential principles and strategies, it is important to acknowledge that mastering negotiation requires continuous learning and adaptation.

To delve deeper into the art of negotiation and enhance your proficiency, we recommend exploring the following resources:

  • “Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond” by Deepak Malhotra and Max Bazerman.
  • “Negotiating the Impossible: How to Break Deadlocks and Resolve Ugly Conflicts (without Money or Muscle)” by Deepak Malhotra.
  • “Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher, William L. Ury, and Bruce Patton.
  • The Program on Negotiation (PON) at Harvard Law School.

These resources offer valuable insights and techniques to help you navigate negotiations effectively and achieve successful outcomes.

Edits by Petro Visagé

The Forgotten Pirates of the Straits of Malacca

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Patrick Calma

When envisioning modern piracy havens, the Red Sea often comes to mind, fueled by the infamous Somali pirates depicted in “Captain Phillips” and, more recently, the Houthis’ pirate-like activities. Yet, there is another, lesser-known region that poses a threat to the global supply chain and shipping industry—the Straits of Malacca in South-East Asia. 

To understand the scale of the pirate attacks we must first understand the importance of the region. It shares the same economic importance that can be seen in The Red Sea. It has been in continuous use since antiquity from Roman, Chinese, Indian, and Dutch traders harnessing the natural canal. Today, a third of all worldwide trade traverses through the straits. This accounts for $3.5 trillion of US global trade, two-thirds of China’s maritime trade volume, and 40% of Japan’s maritime trade. By 2030, shipping traffic is expected to exceed the strait’s capacity. Any prolonged disruption can have a big effect. The gadgets we use have their components manufactured in East Asia so long-term disruptions might result in shortages in the West which would not just impact tech companies but also consumers eager to set their hands on the latest gadgets. Moreover, despite East Asian countries relying more heavily on the straits for their energy needs than the West, global oil prices are intricately linked. Any disruption would cause fluctuations in global oil prices. 

There are various factors that allowed piracy to flourish in the straits in the first place. It was culturally accepted with the tradition of piracy dating back centuries. The favourable geography allowed for low-risk detection as the straits forced commercial ships to be closer to the coastlines. The law enforcement was underfunded, and some even collaborated with the pirates due to poor wages. This all changed in 2004 when a multinational approach was pursued with Singapore, Indonesia, Thailand, and Malaysia cooperating to curb piracy. It was effective as from 2015 to 2018, there was a 92% drop. However, it may be on the rise again with sources differing in statistics. The ReCAAP ISC reported 41 incidents between January and June while the International Maritime Bureau released its annual report that highlighted that the straits have become an area of concern with a reported 37 incidents in the entirety of 2023. Nevertheless, it is a worsening trend with other reports revealing that the attacks are getting more violent.

Diverting shipping is one countermeasure. But it would extend voyages by an estimated 4,600km & spiking expenses by 20%. Indeed, with the current events unfolding in the Red Sea, the journey around The Cape of Good Hope adds a further 26 days. This can be further exacerbated by the International Maritime Organisation’s recommendation to have ships speed up through danger zones as pirates normally target easier slow-moving ships. However, it would remain expensive, for instance, it would cost a super-tanker $88,000 per day in added fuel consumption if it increases its speed from 15mph to 20mph. Vessel owners are usually commercially minded, if the cost of rerouting is high, they are unlikely to do it. Additionally, shipping companies are forced to install CCTV and other preventive measures on board their vessels especially since the pirates in the straits are reported to be using advanced technology such as radars and global positioning systems to gain information and allow them to target larger vessels. 

Regardless, cost-effective alternatives are unavailable. Insurance companies encounter key challenges in piracy zones, encompassing cargo, hull, ransom, and war risk.The latter is intriguing as during the peak of the piracy dilemma in the early 2000s, the straits were labelled as an area of war risk by insurance underwriters at Lloyd’s of London. It led to an increase in insurance premiums and shipping companies were forced to pay this enhanced risk. They were expensive with the average premium increasing from $500 to $150,000. In some instances, shipping companies tend to cover the losses out of their own pocket instead of reporting the incident as it could result in their insurance premiums increasing as well as facing long delays due to government investigations. Shipping companies will also be faced with the prospect of paying ransoms. During the height of the crisis, more than $1 million in ransom was paid in 2005. If the trend continues, we may see a repeat of this fiasco. 

Regional nations must sustain collaboration to curb the escalating piracy trend in the straits and prevent further exacerbation of the situation. In the bigger picture, both China and the U.S. have been growing their power in the region. Uncontrolled piracy could provide a pretext for major powers to escalate competition in the straits, potentially heightening tensions and leading to more severe consequences. Similarly, this can be seen in the Red Sea with the U.S. and Iran, any threats of a commercial sea passage may increase geopolitical tensions and further shape the global market dynamics.  Imagine the calamity that will be faced if both the Red Sea and the Straits of Malacca have been rendered unviable.

Insights from a Global Business LaidLaw Scholar: Olamide Obadina’s Journey and Advice

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Exploring financial support, transformative experiences, and insights for aspiring scholars.

Petro Visagé

Laidlaw is an unparalleled scholarship initiative financing both research and leadership development for undergraduates with a vision to shape them into global citizens and future leaders. Surpassing €7,000 in total, the financial support extends to additional funding for training sessions, travel grants, and project expenses. This immersive experience cultivates indispensable skills transferable to project management, leadership, communication, and teamwork. Guided by experienced academics, scholars embark on original research projects and partake in a distinctive ‘Leadership-in-Action’ experience. Moreover, integration into an esteemed international Scholar group provides not only a network of like minded students but also profile-raising opportunities, enriching the overall academic and professional  journey.

With the application deadline fast approaching, our TBR editors thought it fitting to interview Olamide Obadina, a current Global Business LaidLaw Scholar, to gain her insights, advice and experience with the programme to highlight its opportunities in the business sphere.

“Receiving the Laidlaw Scholarship truly empowered me to conduct research in an area I am genuinely passionate about. I focused my research on gender, racial, and cultural diversity in the C-suite. This is a topic that  affects so many women globally and will affect me personally as someone coming from a minority background.” Obadina continued to explain that the opportunity has enabled her to gain a broader perspective of the topic and to learn from some of the best in the industry. She was able to explore the challenges women of diverse backgrounds face and how they overcome them. The experience further empowered her to present a research project sharing her findings with others that may be experiencing the same thing she did.

Key Opportunities: 

The programme provides opportunities to further develop leadership skills including: 

  1. Training sessions: 

As part of the programme, scholars attend leadership development training sessions including an Ethical Leadership online workshop with scholars from the UK, Canada and USA. Sessions focus on crucial skills such as  project management, ethical conduct, communication, teamwork, resilience, and cultural awareness. Obadina highlighted the training’s value in enhancing her communication and presentation skills, with her cohort participating in engaging public speaking workshops led by an acting coach. 

  1. Networking 

Laidlaw offers the opportunity to join a global network of scholars through the programme’s dynamic online platform and impactful in-person workshops and conferences. The Laidlaw Global Conference particularly stood out to Obadina. The conference brings scholars across the globe together and features unique networking opportunities and panel discussions. It further provides a platform to interact with a diverse range of individuals, allowing for the sharing of research projects and ideas. This engagement creates a sense of community, which is especially important when undertaking independent project work.

  1. Leadership in action

In the second summer of the programme, scholars engage in a ‘Leadership in Action (LiA) Project’ to apply leadership skills to real world challenges. For the project, scholars have the opportunity to travel abroad and work to improve the lives of people in a community of interest. The project empowers scholars to take ownership of a project, stress-test their leadership skills, gain a deeper understanding of global citizenship through exposure to diverse cultures, and contribute to tangible positive change. This may involve applying their own research or collaborating with NGOs, non-profits, or social enterprises. According to Obadina, the projects vary a lot; some resemble internships within organisations, while others involve hands-on physical projects. Numerous projects are located in Central Africa, offering opportunities to contribute to community fairs and uplift communities in various ways. Similarly, there are diverse projects in South America, including Peru and Colombia, providing a range of options based on individual interests and learning goals. “And what I love about it is that everything is contributing to a better, contributing to a better society, which makes you feel so privileged to be a part of a project that’s actually  impactful,” Obadina explains. 

Applying: 

The initial application consists of an online application form, a proposal for a research project in Summer 1, a proposal for a Leadership-in-action experience in Summer 2, a Leadership statement video and finally, a letter of support from the proposed supervisor(s).

Thereafter, applicants undergo a formal interview. If successful, applicants must draft an 800 word proposal for the research to be done in summer 1 and the potential challenges they may face. 

Advice for applications:

  1. Finding a mentor: 

Obadina explains that finding a mentor/supervisor is one of the hardest obstacles. Her strategy was to make a list of potential mentors in the area. She listed all her lectures, all the subjects she had chosen, and then all the subjects that could relate to her research. Obadina then emailed each in turn explaining the project and research. Interestingly, she noted that many professors may be unfamiliar with LaidLaw, so be prepared to explain the programme’s aim. While Obadina successfully found her mentor with this strategy, she urges applicants that may be struggling to leverage LinkedIn; “I’m sure you have a connection and can connect you to someone who could be your mentor. Really leverage your personal network. I think that’s something that you should do every single year. I love that you’re actually doing that for Laidlaw, because personal connections have been so incredible in pushing my research.” 

  1. Choosing a topic

Obadina advises applicants to choose a topic they are genuinely passionate about. “When I did my interview, you could see how passionate I was. They know when you genuinely care about the project and that’s so important because that’s what’s going to motivate you to keep doing this independently over summer.” However, ensure that the research can have a significant impact. “There are a lot of topics you could research that you might be interested in, or they relate directly to your life, but  maybe  in terms of creating a research project, they don’t really transfer to everybody else,” Obadina continues. Thus, the key is striking a balance between personal interest and generalisable, relevant impact. 

  1. Drafting the application:

It is imperative to be clear and concise, Obadina explains: “Know exactly what is going to come out of your research. Be clear about the type of leadership and action projects you want to do in year two. Be clear about potential challenges that you might encounter. Be clear about what you want to gain from the space. That’s something they will really look for. As a person, what do you want to gain from this? What do you really care about?” 

Obadina’s experience:

For Obadina the experience has been beyond rewarding. When asked about her experience she emphasised two main highlights: the global exposure and the growth. 

Through the annual Laidlaw Global Conference, Obadina was able to find a community of passionate scholars from across the globe, each with their own fascinating research to share. The opportunity also empowered her to interview inspiring women in  reputable roles; from entrepreneurs to executives from Canada, the U.S., Malta, France, the U.K. and more.  

To Obadina the most rewarding part was how much she learned from the interview process. She loved hearing stories from people that were mistreated in the C-Suite and how they overcome their challenges in the workplace. The experience also gave her exposure to many different industries and how systematic barriers differ across sectors. She further noted significant personal growth through the experience, as in facing many setbacks throughout the process, Obadina learned to be flexible and adaptable in her approaches and to set realistic goals for progress. 

The experience further enabled Obadina to discover just how passionate she truly was about the topic. “I always knew I was interested in diversity and inclusion, but when you’re actually doing your research, you realise, wow, this is something that I really get here, something I’ll be able to pursue a career in, something that I could do my research in. It gave me a really good view of where I could take this long-term.” 

The deadline is 12:00 Noon, 12th February 2024! Be sure to apply!

Advice to successful candidates

“Approach it with an open mind. At this point, you’ve picked your topic, you’re probably really excited about what you want to do and you’re probably going to plan out everything and make preparations. I would say do that, it’s amazing, but also accept that it will not always work out that way. And that’s not  something negative. I actually see it as an opportunity to pivot. Being flexible and adaptable is going to help you when you solve problems in the future. Don’t overthink it, you’ll learn as you go.” 

– Olamide Obadina

Read more on the Laidlaw Scholarship here: https://www.tcd.ie/Careers/students/awards/laidlaw/ 

For more questions on the programme feel free to reach out to Olamide Obadina via LinkedIn: linkedin.com/in/olamideobadina

Amazon’s Unfair Play: Exploring the FTC Lawsuit and Exclusive Insights from Dr. Christopher Gopal 

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Mariia Kashirina 

Introduction: 

Amazon Inc. is an American multinational technology company ranked the fifth largest in the world by market capitalisation. It positions itself as an online marketplace and is known globally not only for its wide variety of products, quick delivery, and low prices but also for its innovative technology,  efficient supply chains, and data-driven strategies. The company claims to be guided by four principles: a passion for invention, commitment to operational excellence, long-term thinking, and customer obsession rather than competitor focus.

However, when examining the company’s fourth principle,  is Amazon truthfully customer-obsessed rather than competitor-focused? According to the Federal Trade Commission, it is not. 

On 26 September 2023, The Federal Trade Commission, led by Chair Lina Khan alongside 17 state  attorney generals, filed an antitrust lawsuit against the multinational online retail giant, claiming that the corporation is a monopolist that illegally maintains its power through a series of  interconnected, unfair, and anti-competitive tactics.

Why is the FTC going after Amazon? 

Under the current Chair, Lina Khan, the FTC has a more confrontational stance against the influence of  big tech and augmented efforts to break the rooted monopolies held by a few leading firms in sectors like online retail and search engines.

Khan rose to prominence as a legal scholar, primarily through her influential paper in the Yale Law  Journal titled “Amazon’s Antitrust Paradox”.  This pivotal work focused on the concept that consumer  prices were paramount in determining whether a corporation engaged in anticompetitive behavior through Amazon’s lens.  This highly anticipated antitrust lawsuit has just been initiated, with Amazon at its center; the company faces accusations of persistently engaging in unlawful practices that obstruct competition, enabling it to wield monopolistic power. 

According to the lawsuit, Amazon currently dominates the e-commerce sector by dictating prices,  limiting the selection of products, and ensuring that its competitors are unable to gain traction with  buyers and sellers. Its strategies affect an enormous portion of online retail sales, impacting numerous  businesses and millions of shoppers, cementing its stronghold in the market.

The specific allegations outlined in the complaint include: 

• Anti-discounting measures and manipulating other stores into increasing prices

• Forcing sellers to use Amazon’s costly fulfillment service to obtain “Prime” product eligibility

 • Lowering the quality of the user experience through “defect ads”

• Manipulating search results and trapping consumers into paying for Amazon Prime

From here, we can explore Amazon’s role in the competitive market landscape.

Analysis: Amazon’s Supply Chain and Anti-Competitive Tactics

I. Amazon’s Overall Supply Chain and Fulfillment

Amazon’s supply chain process starts with bulk goods dispatched to Amazon Warehousing and  Distribution (AWD) through freight and logistics services. AWD then stores products cost-effectively,  ensuring quick availability at distribution centers. Strategically located warehouses, optimised internally with five storage areas each, enhance product retrieval speed, aligning supply with demand. Goods move from fulfillment centers to customers in the final step.  

Fulfillment is integral to Amazon’s supply chain strategy, and with third-party sellers being responsible  for more than half of all sales made on Amazon, there are two fulfillment options for sellers – Fulfillment  by Amazon (FBA) and Fulfillment by Merchant (FBM).  FBM allows the seller to be in charge of listing  their products on Amazon and handling fulfillment aspects of the process on their own, while with FBA, Amazon takes full control of logistics and customer support while merchants only have to send their  products to them.

Fulfillment by Amazon is one of the central parts of the FTC allegations, as they claim that “Amazon  maintains its monopolies in both customer and seller markets by coercing sellers to use Amazon’s fulfillment service”. Amazon’s fulfillment service allows sellers to fully access Amazon’s substantial  base of shoppers, making it a critical aspect of the marketplace services Amazon offers to sellers.  

While it may seem that Amazon does not force the sellers to use FBA, the ones who will opt for independent fulfillment will have to split their inventory across multiple channels in order to ensure the  next day delivery promised by Prime. Such a strategy artificially stunts the growth of FBM, which prevents competitors from reaching the size necessary to effectively challenge Amazon. 

In addition, it is alleged that sellers who do not utilise the Prime eligibility effectively disappear from the  storefront, making the product almost invisible to consumers, which decreases their sales numbers  significantly.  

II. Amazon Prime 

According to the FTC, Amazon’s internal data reportedly indicates a significant rise in consumer  spending when they commenced Amazon Prime. This surge in spending contributes substantially to  Amazon’s revenue, which reached $35.22 billion in 2022 through Amazon Prime sales. Allegedly, to  maintain these sales figures, Amazon is accused of employing tactics such as deceptive designs to  coerce consumers into recurring subscriptions and making the cancellation process intentionally  complex and lengthy, referred to internally as “Iliad Flow”, drawing parallels to Homer’s extensive epic  poem. These manipulative tactics negatively impact both consumers and law-abiding businesses. 

III. Algorithmic and Contractual Tactics 

It is also alleged that Amazon employs its algorithms to restrict rivals from expanding in the e-commerce  industry by manipulating price competition. A crucial factor for Amazon, these algorithms employ various methods to implement an anti-discounting approach and maintain the perception of offering the lowest prices in the market. 

According to the FTC, Amazon employs its “Competitive Monitoring Team” to monitor the internet for price changes continually. Following that, they utilise this team to enforce new contractual duties and even harsher penalties on third-party marketplace vendors who offer cheaper pricing on other internet stores. An example of such a penalty could be the “Select Competitor – Featured Offer Disqualification” algorithm that has been used by Amazon to enforce its “expectations and policies”. This algorithm removes the seller from the “Buy Box”, where 80%  of all purchases are performed, significantly undercutting vendors’ sales thus forcing them to resist offering lower prices elsewhere.  

In addition, it is claimed that Amazon not only prevents the sellers on their marketplace from offering  lower prices but also has manipulated other stores’ pricing algorithms into increasing prices through  “Project Nessie”, the algorithm whose only purpose is to raise prices for consumers. 

Project Nessie accurately predicted that there was a high chance other internet retailers would imitate  Amazon’s price increases for items they were already making a profit on. It acted at the optimal moment  when the probability of others replicating the price adjustment was at its highest. Through these  manipulations of other stores’ prices, Project Nessie has generated over $1 billion in additional profit for  Amazon from 2016 through 2018, according to their own calculations.

IV. Advertisement and search results 

Additional accusations of unlawful tactics involve Amazon degrading customers’ experience by placing costly, irrelevant advertisements on their platform and skewing search results to favor Amazon’s  products over those of better value. 

According to the FTC complaint, Amazon CEO Jeff Bezos instructed his executives to “accept  more defects” during a key meeting. “Defect Ads” are advertisements that are partially or entirely  irrelevant to the customers’ search. The main idea in placing “Defect Ads” is to nudge the customers  

towards higher priced items. As the space on the platform allocated to sponsored content expands, it  becomes more and more challenging for buyers to find more affordable products. This complicating  factor, in turn, counteracts the effect of inflated prices. 

Despite the compromise between heightened ad earnings and decreased sales due to inferior search  outcomes, Amazon sustains consistent double-digit growth in total sales and hasn’t experienced a  substantial departure of customers to competing platforms.

The decline in user experience doesn’t just end with flawed ads. Amazon exacerbates advertisement concerns by hiding  natural content under recommendation widgets like the “expert recommendation” feature, showcasing  Amazon’s products ahead of others.  Through manipulation of these widgets, Amazon obstructs fair competition against its own products, intentionally concealing details about competing products to artificially boost its own offerings. According to the FTC, Amazon’s ability to conduct this way without  losing a significant portion of customers directly demonstrates its monopoly power.  

Amazon’s response 

In their statement, Amazon responds to the FTC’s allegations by saying that the lawsuit appears to be  misguided and, if successful, would force Amazon to engage in practices that actually harm consumers and the many businesses that sell in their store—such as having to feature higher prices, offer slower or less reliable Prime shipping, and make Prime more expensive and less convenient.

In addition, Amazon argues that its dedication to low pricing, assistance for independent sellers,  Fulfillment by Amazon (FBA), and Amazon Prime are not only pro-competitive but also beneficial to  customers. They plan to fight the case while maintaining its focus on customer pleasure and innovation.  

Criticism of the Allegations 

The main criticism of FTC’s claim is that their allegations against Amazon are misguided. One common  argument is that both sellers and consumers have the option to choose alternative platforms or avenues  if they feel disadvantaged by Amazon’s practices. They can opt for competing platforms like Walmart and Target or create their own distribution networks to avoid reliance on Amazon;similarly, consumers  are not compelled to shop exclusively on Amazon, as they can adjust their behaviour by seeking better  prices or quality elsewhere. 

However, a critical perspective arises when evaluating Amazon’s dominance in the e-commerce  industry. While it may not hold the same level of dominance in the broader retail market, Amazon  overwhelmingly leads the e-commerce sector with a share of 37.6%, followed by Walmart at 6.4%,  Apple at 3.6%, and eBay at 3%.  This context suggests that within the realm of e-commerce, the options  available to both sellers and consumers are significantly limited by Amazon’s dominant market position.  Hence, the argument that they have the freedom to opt for alternatives might not hold true due to  Amazon’s unparalleled presence. 

Another common argument refers to the FTC’s accusation of Amazon punishing sellers who offer  cheaper pricing on other internet stores. In particular, Fortune argues that “sellers offering prices lower  on their websites does not lead to lower prices for consumers, it just allows the sellers to shift the sale  from the Amazon website to their own” and “merchants who attempt this free-riding tactic are the ones  raising consumer prices on Marketplace to try to keep Amazon from making the sale”. 

Although this price tactic might seem effective in preventing free riding by merchants and ensuring the  lowest price to consumers, it still significantly limits competition and innovation in the marketplace. By  enforcing these rules on sellers, Amazon limits the merchant’s ability to dictate their pricing strategies 

and offer better prices on their websites. This, coupled with Amazon’s prioritisation of private label  items over organic content through recommendation widgets, makes it difficult for sellers to compete.  The price parity policy further emphasises this issue, limiting merchants’ pricing flexibility and making it  harder for them to attract customers. Ultimately, these restrictions hinder consumer choice and  undermine the potential benefits that healthy competition can bring, such as lower prices. 

Insights from Dr. Christopher Gopal 

Dr. Christopher Gopal is a well-known figure in the field of global supply chain management, logistics,  and information technologies. With over four decades of experience as a supply chain and operations executive, he has spoken at various international conferences, including but not limited to HBR, IATA,  OECD, and EU Conference on Concentration and Security.  

Dr. Gopal has also held SVP and VP positions in supply chain and operations for major global  corporations like Dell, SAIC, and Unisys, among others. He has written four books on Supply Chain &  Operations, including the latest one titled “Breakthrough Supply Chains: How Companies and Nations  Can Thrive in an Uncertain World”, which was published by McGraw-Hill in June 2023.  

Currently, Dr. Gopal teaches “Supply Chain Management” and “Strategic Cost Management” at the Rady School of Management at the University of California, San Diego. Additionally, he is a member of the  Defense Business Board (DBB), which is a Department of Defense/Pentagon Advisory Body that provides  business perspective advice to the Secretary of Defense and other officials.  

Exclusively for this article, Dr. Gopal shared his opinion on the most pressing topics of the FTC vs Amazon  lawsuit that allows a broader understanding of the ongoing dispute:

First of all, should the Federal Trade Commission go after Amazon? 

Dr. Gopal advocates for the FTC’s intervention towards Amazon. However, he believes the  ongoing lawsuit should not be aimed at destroying Amazon but rather must emphasise the  necessity to employ stricter regulations that would foster healthy competition and prevent  monopolistic practices from being utilised. He points out the prevalent lack of enforcement of  numerous antitrust rules and regulations, indicating a critical need for implementation. He believes that the FTC should actively enforce these regulations upon Amazon to ensure a fair  marketplace and promote a level playing field for all businesses involved. 

Given the accusations, what potential changes or adaptations might Amazon need to make in its operational strategies to comply with antitrust laws? 

Dr. Gopal believes that the most crucial changes that Amazon will need to make are changes in  their pricing models and fulfillment operations to comply with antitrust laws. According to him,  it might be beneficial for Amazon to decouple these services from its own fulfillment network.  

This means allowing suppliers who wish to sell on Amazon to utilise their own fulfillment  services and giving them the freedom to opt for their preferred delivery and distribution  methods. 

At present, some sellers avoid using Fulfilled by Amazon (FBA) because Amazon requires them to  split their inventory across various sales channels. This constraint restricts sellers and potentially  hampers their ability to maximise their sales potential. Instead of imposing such restrictions,  Amazon could empower vendors by providing them with greater flexibility in managing their  inventory across multiple platforms.  

Essentially, Amazon should function more as a platform that facilitates sales rather than imposing its fulfillment services on vendors. 

In addition, he holds the view that the accusations regarding Amazon’s alleged favouritism toward  their private label products within recommendation widgets, along with algorithms that  seemingly exclude sellers from the “Buy Box”, requires immediate rectification. It is evident that  these practices need adjustment to ensure fair competition on the platform. However, there is a  possibility that Amazon might seek alternative approaches to maintain its strategic advantage  despite any corrective actions taken. 

How will these improvements affect operational efficiency and the company’s relationships with third-party vendors? 

According to Dr. Gopal, opting for a change could notably impact efficiency, especially in relation  to Amazon’s hallmark “next-day delivery”. To ensure clarity, if Amazon intends to uphold this  service standard, it should be communicated clearly up front. Yet, sellers should also have the  freedom to specify longer delivery times, aligning with transparency and allowing them to  manage customer expectations effectively. 

In terms of Amazon’s relationship with third-party vendors, transitioning from a fulfillment focused approach to a platform-oriented one will likely attract more vendors. This evolution  would enable vendors to diversify their distribution, not solely relying on Amazon but exploring  other e-commerce platforms. This diversification could reduce Amazon’s monopolistic  tendencies and compel the company to offer more competitive terms to vendors in order to  remain appealing in the market, which would ultimately benefit both vendors and the e-commerce landscape as a whole. 

What is Amazon’s future? Will the FTC succeed? 

Dr. Gopal anticipates a shift in Amazon’s operations post lawsuit, expecting operational  enhancements in the aftermath of legal proceedings. Nevertheless, an alternate viewpoint  surfaces when considering the imminent election and its potential impact on the FTC’s  administration.  

The prospect of a change in the FTC leadership due to the upcoming presidential election offers  a new angle to the narrative. This potential shift in administration might embolden Amazon to  prolong its legal battle, seeking a more sympathetic disposition from the incoming officials.  Hence, the company might persist in its strategic maneuvering, buoyed by the hope of a more  favorable regulatory climate.

While Dr. Gopal foresees some lawsuit outcomes in the near future, he doesn’t expect Amazon  to concede entirely to the FTC’s demands. The company is likely to fortify its position leading up  to the election. 

Interestingly, Dr. Gopal’s conversation with Barry C. Lynn, a liberal American journalist and writer currently advising the Federal Trade Commission on the Amazon antitrust lawsuit, reveals a contrasting perspective. According to him, the FTC is confident in its ability to win on most of the allegations, indicating a strong belief in its case against Amazon. 

Where from Here? 

According to a former Justice Department antitrust official, George Hay, “Amazon has had years — at  least since Lina Khan came to the FTC — to think about this lawsuit and how they’re going to defend  against it.”  Indeed, with Amazon’s lengthy preparation and the FTC’s determination, the stage is set for  a protracted legal showdown. This impending battle signifies just the initial chapter in the FTC’s broader  campaign to dismantle the monopolistic grip exerted by tech giants. As we await the unfolding of  events, the trajectory of this struggle will undoubtedly shape the landscape of the tech industry for  years to come.

Is this turning into Apple’s most challenging year yet?

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Apple has been through a rough patch lately. With regulators and governments around the world
turning their ire against the tech giant and a litany of technical faults plaguing their latest phone –
will 2023 be Apple’s most onerous year yet?

iPhone 12
On Tuesday, 12 September, French regulators halted the sale of the iPhone 12 – on a charge that
the radiation levels emitted contravened safety guidelines. France’s ANFR found the phone’s specific
absorption rate (SAR) was 5.74 watts per kilogram, well above the 4 watts per kilogram EU standard
for such tests. While Apple has issued a software update to attempt to rectify the problem, issues
surrounding health and safety live long in consumer memories, as Samsung experienced with their
Galaxy Note 7 explosive battery debacle.

iPhone 15
Amidst these challenges, Apple needed the launch of this year’s iPhone 15 to go off without a hitch.
However, early reviews and impressions have resulted in a host of technical issues with the device.
Apple’s launch of the phone touted unrivalled performance from a phone, yet it appears this
computing power is resulting in serious overheating issues. Customers report iPhones that become
uncomfortable to hold due to overheating – with an iPhone 15 Pro Max reportedly reaching 112˚ F.

Further issues emerged from users attempting to transfer data between iPhones. The iPhone 15
reportedly becomes unresponsive, displaying what has been described as the ‘Apple logo of death,’
as it struggles to transfer data. While Apple issued a software update to try and resolve the issue,
many users claim not to have received it. When similar issues plagued LG’s G4 flagship, the company
never truly recovered, forcing the company to close its mobile phone division a few years later in
2021.

Apple was also forced to again return to Qualcomm for the modem in the iPhone 15, despite a five-
year drive to develop their own chips. iPhone’s have traditionally used Intel modems, but their
performance lacked behind those of Qualcomm, which manufactures the majority of high-end
processors for the Android market. This performance prompted Apple to purchase Intel’s modem
division in 2019, but Apple has proven unable to match Qualcomm’s current level of sophistication.

Regulatory Intervention
While the setbacks listed so far have been technological, and confined to the iPhone, Apple is facing
problems on all fronts. The EU has forced Apple to adopt USB Type-C on all future iPhones, in an effort to force more
standardisation and put to an end Apple’s proprietary, and lucrative, lightning cable.


Both Apple and Google have come under intense scrutiny from regulators for their so-called ‘walled
garden’ app stores. Regulators are working to force Apple and Google to allow competing app
stores, such as the Amazon App Store, to be used for downloading applications on iOS and Android.
Currently, Apple’s walled garden allows it to charge a 15-30% fee on all transactions conducted
through apps downloaded in the App Store. The tech giants have been hit with fines and action from
regulators in Europe and the US, and Fortnite developer Epic Games brought the iPhone maker to
court over its refusal to allow Epic Games to circumvent the fees.

Apple also faces hurdles in one of its most lucrative markets, China. Apple has bucked the trend among non-Chinese smartphone manufacturers, by managing to have a sizable presence in a country traditionally hostile to foreign companies. As in much of the world, Apple products are a growing status symbol among China’s growing middle and upper classes.

But international tension between the People’s Republic of China and the democratic western
powers has begun jeopardising this relationship. Apple, like many other companies, has begun
opening new assembly plants in South-East Asian countries like Vietnam, as rising labour costs and
the possibility of sanctions and conflict has compromised China’s status as the ‘Manufacturer of the
World’s Goods.’ Additionally, this vSeptember the Chinese government announced a crackdown on
‘unregistered apps’ within the Apple App Store. This push is likely to see the operation of several
social media apps including Facebook, Instagram and X (formerly Twitter) curtailed, in an effort to
stop the spread of ‘misinformation.’

Pivoting
Many of the adversity Apple faces surrounds its iPhone. While the iPhone remains Apple’s main
revenue generator (accounting for nearly half of the company’s total revenue) the company has
been making efforts to reduce its reliance on traditional hardware products, and is increasingly
entering the services industry. Apple Music and Apple TV are some examples of the strides into new
sectors that Tim Cook has steered the trillion-dollar company. There is also a plan for an Apple Car in
the pipeline – which may be just the revitalization Apple needs to stay relevant and to prevent issues
in its traditional operations from affecting the company’s overall performance.

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