“HQ2 will be the second Amazon headquarters in North America. We are looking for a location with strong…talent—particularly in software development and related fields—as well as a stable and business-friendly environment.” – Amazon
Amazon has received 238 proposals from across North America and is determining the most attractive location. Each proposal submitted has a creative proposition. Vancouver has submitted a proposal of its own. Vancouver may seem like the perfect fit because of its educated workforce, west coast location and its well established trading relationships with countries like China. China has a competing company, Alibaba, and Amazon’s penetration in Alibaba’s marketplace will be a strategic competitive initiative. Amazon’s main headquarters are located in Seattle, “Proximity to Seattle is something nobody else in Canada can lay claim to,”(News, 2017). The creation of the second headquarters promises 50,000 jobs for the chosen city and will subsequently increase the city’s overall economy. A decision for Amazon to locate in Vancouver may seem exciting and profitable but when further dissected may not be the best location, especially for us Vancouverites. Vancouver may be good for Amazon, but is Amazon good for Vancouver?
The 50,000 more jobs is attractive, however, realistically may be difficult to fill. Vancouver’s unemployment rates is low and to fill these positions qualified individuals will need to migrate to Vancouver. Vancouver is already struggling with traffic congestion, inefficient transit systems, unaffordable housing and a geographical location bounded by mountains and ocean water.Where will these new employees live? How will they commute?
In reference to “The Upshot” Blog Post, New York will not win the bid for HQ2 because of its high costs of living. Therefore, Vancouver will struggle much the same as New York due to our high cost of living.
Integrating the PEST strategizer into Vancouver’s proposition for Amazon could have assessed whether it was in Vancouver’s best interest to actually enter the competition. The PEST strategizer would have uncovered specific pitfalls such as possible political ramifications. Economically, Amazon is an industry disruptor and would puncture local retail operations – destroying Vancouver’s unique businesses. Socially, Amazon will add stress on housing, transportation, and population density. Vancouver already is home to strong technological development and Amazon would detrimentally affect local companies as Amazon could afford to lure top talent away.
Other cities have offered huge incentives to attract Amazon. “Vancouver’s bid plans will not be released until a decision on the second home city has been announced by Amazon sometime in 2018” (Chan, 2017). The commission only disclosed that the incentives focused on real estate, health care and labour. Time will tell which proposal will win the second headquarters of Amazon and how it will affect you and me.
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