This is an aggressive expansion into a new market for Amazon. Photo: Getty
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Amazon's smartphone launch offers a prudent platform for growth

What the launch of Amazon’s smartphone tells us about the company’s future strategy.

Amazon, the e-commerce internet giant, is launching its first smartphone. Media attention is focusing on whether the phone’s features, such as its rumoured 3D interface, are really as cool as portrayed in its trailer video which aims to wow early users. But by entering into the fray of an already hyper-competitive mobile phone industry, Amazon is doing a lot more than adding another gee-whizz feature to a smartphone.

This launch tells us a great deal about CEO Jeff Bezos' strategy for his company – and what it might mean for the future of competition and innovation in our increasingly digital world.

First, let’s ask the obvious questions. Why is Amazon, known for internet retailing and related software development, entering a hardware market where leading incumbents like Nokia have already failed? After all, what does Amazon know about the telecoms business? Can it succeed where Google has failed?

We have seen Google, which has virtually limitless financial resources, enter the mobile phone handset industry by purchasing Motorola Mobile in 2012, only to take a heavy loss after selling it on less than two years later. Even incumbent firms who had a very strong set of phone-making capabilities have taken tough hits in this turbulent market – witness Nokia’s dramatic plunge, which led to a sale of its mobile phone business to Microsoft.

Platform Number 1

You cannot understand Amazon’s move without situating it in the broader context of platform competition. Platforms, these fundamental technologies such as Google search, Facebook and the Apple iPhone, are the building blocks of our digital economy. They act as a foundation on top of which thousands of innovators worldwide develop complementary products and services and facilitate transactions between increasingly larger networks of users, buyers and sellers. Platform competition is the name of the game in hi-tech industries today.

The top-valued digital companies in the world (Amazon, Apple, Google, Facebook) are all aggressively pursuing platform strategies. App developers and other producers of complementary services or products provide the armies that sustain the vibrancy and competitiveness of these platforms by adding their products to them. The more users a platform has, the more these innovators will be attracted to developing for them. The more complements available, the more valuable the platform becomes to users. It is these virtuous cycles – positive feedback loops, or “network effects” – that fuel the growth of platforms and transform them into formidable engines of growth for the companies and developers associated with them.

The smartphone is a crucial digital platform. Achieving platform leader status in this space is a competitive position all the hi-tech giants are fighting for. Google has its ubiquitous Android operating system, Apple has shaped the whole market with the iPhone, Microsoft has purchased Nokia’s phone business, and Facebook has invested $19 billion in WhatsApp among other acquisitions for its growing platform.

In fact, I suppose I should have rephrased my question a little earlier – why hasn’t Amazon already staked its claim to lead this digital space after having launched its Kindle Fire tablet and Fire TV set-top box?

Opening the door

Simply put, the smartphone is the main gateway to the internet today, and, in the hand of billions of users throughout the world, is the physical embodiment of a conduit that links those users to each other and to the whole content of the internet. There are almost 7 billion mobile phones in the world (and only 1 billion bank accounts). And the trend is staggering. Mobile payment transaction value surpassed $235 billion worldwide in 2013, and is growing at 40% a year, with the share of mobile transactions already reaching 20% of all worldwide transactions.

So, while risky, Amazon’s entry into the smartphone business is a classic play: a platform leader entering an adjacent platform market that is also complementary to its primary business. All platform leaders aim to stimulate complementary innovation (think how video game console makers aim to stimulate the provision of videogames), and they often attempt not to compete too much with their complementors in order to preserve innovation incentives. But at some point all platform leaders start to enter these complementary markets themselves. Google has done it through Android, Apple has done it with iTunes, Facebook has done it with Facebook Home.

It happens when platform leaders feel threatened by competition in their core market, or when they want to steer demand, competition and innovation in a particular direction. The idea is to use their own user base as well as their own content and technologies to create an unassailable bundle, one that is difficult for external competitors to break into. Think of it as creating barriers to entry, while expanding the core market.

The reasoning behind entering a complementary market is well known, and related to the benefits of bundling. In the case of hi-tech platforms, the benefits are even stronger. By optimising and controlling the interface between a platform and complements, a company can have a structuring impact on the evolution of the platform ecosystem – and that means on all the innovators around the world that invest and make efforts to develop complementary products and services.

In your hands

So, these are the reasons why Amazon is entering the mobile phone market, despite the difficulties inherent in taking on an über-competitive market. This strategic choice makes a lot of sense.

As to whether Amazon has a fighting chance of succeeding, there are reasons to be optimistic. Beyond its deep financial resources, Amazon has learned something of what it takes in the development and successful commercialisation of various versions of the Kindle. That has given it expertise in hardware, on top of its software background, and should prove a useful training ground to allow it to launch other consumer products such as the smartphone.

But the ultimate judge will be you, gentle readers. Will you be willing to swap your favourite mobile phone for a yet another new kid on the block, even if it does let you browse Amazon’s ever-growing catalogue in splendid 3D?

The ConversationAnnabelle Gawer does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

This article was originally published on The Conversation. Read the original article.

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Understanding anxiety – my inside view of a debilitating disorder and how to control it

Following a number of recent anxiety attacks, I set out to learn why this happens to me.

As I stepped out of the office one evening after a routine day at work, I found myself glued to the floor. Legs bolted, knees quivering, heart racing – I was cemented into the ground by something paralysing.

I had to work out what was happening, and fast. Was a looming deadline holding me back from leaving? Was an unread message on my phone stopping me in my tracks? Perhaps fatigue had set me on edge. Or that passerby with an unsettling stare caught me off-guard. Maybe it was something more surreal; maybe a sense of dread had taken over, as I started to perceive each onlooker as a potential source of fear. Whether it was all of those things or none of those things, I eventually realised that the sticky situation I had found myself in was the onset of an anxiety attack.

Anxiety is a disorder of varying forms. People may be affected by generalised anxiety disorder – characterised by excessive worrying (often without an identifiable trigger), a specific phobia or panic disorder, in which terror can overwhelm a person without warning. The sufferer experiences physical and mental symptoms of distress that include a feeling of restlessness, shortness of breath, and agitation, exacerbated by the uncontrollable spiralling of their thoughts, which can often be self-deprecating and debilitating.

I had been in this situation before. The rising tension makes for an overwhelming and often paranoid experience, but my awareness of the fact that I was indeed having an anxiety attack was enough to know that this feeling wouldn’t persist for an indefinite amount of time; it would eventually pass, as all anxiety attacks do.

After roughly half an hour of concentrated breathing, conscious changes in thought patterns and eventually moving to a quieter spot, I had managed to calm down.

Though I had managed my anxiety attacks before via similar means, I was curious to know – what exactly was happening during my attacks? What can specifically be done while they’re happening? And could the panic and jitters of anxiety ever be beneficial?

The biology of an anxiety attack

The biological basis of an anxiety attack is tied to the actions of the body’s autonomic nervous system – a division of our nervous system that, without conscious control, regulates our bodily organs and systems.

When stimulated, the autonomic nervous system kicks into gear, causing the release of adrenaline into the bloodstream. And that’s when things flare up.

Pulses of adrenaline are produced in response to a stimulus  one that causes the body to kick into a defensive fight-or-flight mode. With anxiety, these stressful stimuli include excessive thoughts, heightened worries, trauma triggers and objects posing as threats. Even subconscious phenomena have been proposed as provokers; it is known that sufferers may wake up from a night’s sleep in a bout of panic. The stimuli add to the existing level of distress, making a person’s breath shallower, often inducing profuse sweating, and initiating a dark foreboding, all in the space of a moment.

Combating anxiety

According to the NHS, there are a number of techniques that can be employed to manage the distressing symptoms of an attack. Staying in a fixed spot, deep breathing and actively issuing a challenge in your mind to the fears on which you may be fixating are crucial things to do in the immediate stages. I wasn’t sure whether in my latest case I had done this instinctively or out of habit from past struggles. Either way, the methods were relieving.

The end of an attack is reached through an eventual depletion of adrenaline, which tells the body that it no longer needs to be on high alert. It brings with it tiredness but a welcome passing of the crisis. However, without a longer-term, pragmatic approach to tackling the disorder, it’s almost certain that an individual will face another intense period of anxiousness. So how should anxiety sufferers manage the issue over a longer period of time?

This is where therapy can be an extremely useful form of intervention. Cognitive behavioural therapy (CBT) is the most common form of therapy for the disorder, with research demonstrating its effectiveness in treating the closely related disorders under the umbrella of anxiety. CBT focuses on a reconfiguring of thought patterns, shifting perceptions and a redefining of negative sources of fear.

Recently, I spoke to David Potts, a CBT therapist, to discuss how therapy can be of benefit. He said: “In therapy we'd work on specifics. It would involve telling yourself what the triggers are. Often people have very negative views about what's happening to them [during an attack]; they'll think I'm having a heart attack or I'm going to die and those kinds of thoughts form a vicious cycle and the panic gets worse.”

According to Potts, being attuned to the occurrence of an anxiety attack is essential in taking active steps to overcome it. It can facilitate the process of calming down, allowing the person in the midst of an attack to separate the thoughts in their mind from the reality of a particular situation.

Therapy can also offer an individualised approach to understanding a person’s anxiety. Potts told me: “Often, from a therapy perspective, we are considering what’s happening to them [the patient] in their lives that lead them to be more anxious than other people. It could include things they’ve experienced in childhood, it could be ways that families are, or it could involve ways that they’ve learnt to manage different emotions.”

Beyond therapy, medication is available to aid anxiety. Appropriate to a disorder that can affect people in various ways, there are different types of medication. Selective serotonin reuptake inhibitors (SSRIs) are the most common form of medication. SSRIs are antidepressants that seek to increase levels of serotonin in our brains – a neurotransmitter thought to be central to the maintenance of mood. Other drugs available (in case of side effects from SSRIs) include serotonin and noradrenaline reuptake inhibitors (SNRIs), pregabalin and benzodiazepines. Though alleviating, medication is something that should supplement forms of therapy, as the pills themselves won’t solve the social triggers and problems that cause anxiety.

As people have increasingly moved towards holistic lifestyles, emphasis on exercise and dietary intake has been elevated. Eating healthier has been linked to reduced symptoms of anxiety, while exercise has been proven to reduce levels of stress in the long run. Reduced stress equates to a reduced risk of an anxiety attack.

Changes to the brain from exercise have been documented too. Researchers at Princeton University found that physical exercise generates excitable new brain cells in the hippocampus – an area of the brain involved in emotional responses. Though the excitability of the neurons would generally be unfavourable (priming the brain for anxiety), researchers found that the impact of exercise was one which had a calming effect, as the exercise was able to switch off the newly-generated, excitable neurons at times when they weren’t required.

When just a ten-minute walk has been shown to offer benefit, there seems to be very little to oppose the implementation of exercise as a form of therapy for anxiety.

Living with anxiety

Perhaps surprisingly, anxiety can be harnessed as a tool of empowerment for some. When it occurs at a smaller scale, it can serve as an informative warning against stressors, and help an individual focus and pinpoint their attention.

As a sufferer, acknowledgement of anxiety seems to be the key to unlocking the resources that can dull its impact. With carefully paid attention, responsibility and mindfulness, the waves of anxiety threatening to drench you can be reduced to smaller, more manageable ebbs and flows.