Business Wars

It’s November 2018. Mark Zuckerberg takes a hit as his copycat TikTok product fails miserably. Then, Instagram faces another disaster when a security breach draws ire from users. But Zuckerberg decides to launch a direct attack on his Chinese competitor.

 TikTok emerges as a major hitmaker in the music business and cements its place in pop culture. But founder Zhang Yiming's hot app comes under scrutiny from regulators, as it gets drawn into a geopolitical battle that could spell the end of TikTok.

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It's August 2016 and Instagram co-founders Kevin Systrom and Mike Krieger are about to pull off the tech equivalent of a heist — and they just might get away with it. But despite its success, Instagram faces trouble at home when Mark Zuckerberg starts rocking the boat.

In China, TikTok founder Zhang Yiming has his eyes on global expansion. He's willing to spend big to acquire his competition — and that poses a huge threat to Instagram's supremacy.

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It’s the mid '90s and Kevin Systrom is editing a video game. It's his first taste of coding, but it won't be his last. When he grows up, he's going to build a product used by more than a billion people. 

Across the Pacific Ocean, in a rural part of China, Zhang Yiming is having a very different childhood. But he and Systrom share a common North Star: The American Dream. Achieving that dream, however, will be a nightmare filled with stiff competition and cut-throat corporate maneuvers.

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It’s July 2010, and Kevin Systrom is on holiday in Mexico when he has an idea for how to save his failing app: offer filters to make users’ photos more appealing. He gets back to San Francisco and teams up with his friend Mike Krieger. Together they launch Instagram, a platform that will revolutionize how we interact with society.

Meanwhile in Beijing, China, Zhang Yiming starts a news aggregator app powered by AI. It learns which stories users like and feeds them more of it, giving people what they want before they know it. This powerful algorithm will become the foundation for TikTok, an app that will become a proxy battleground for the feud between the U.S. and China. 

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Black Friday, the busiest shopping day of the year, will break the mold this year, as the pandemic sends retailers scrambling for new ways to bring in customers while minimizing large crowds. But the changes to American shopping habits predate the pandemic. Host David Brown talks with Business Insider retail correspondent Madeline Stone about what to expect from a COVID Christmas and which changes to our spending habits are likely to stick. 

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Consumers are increasingly looking to buy from brands whose values match their own, and denim is no different. These days, the jeans giants are not only facing down threats from each other, but navigating a new era of partisan consumerism. For more on how denim and other industries are appealing to consumers on both sides of the aisle, we speak with Cait Lamberton. She's a professor of marketing at Wharton who specializes in consumption behavior and marketing practice. Plus, she shares advice for entrepreneurs wondering whether to take their brands political. 

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It's 1999 and Levi's is a company in trouble. It's drowning in debt, out of fashion, and hobbled by sub-par distribution.

But while Levi's searches for a way to make a comeback, a new, fast-growing enemy is out to convince people to abandon jeans altogether.

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It's the '80s and Levi's is far out in front in the battle for denim dominance. 

But Lee owner V.F. Corporation isn't giving up. It's about to make a major move that will pile the pressure on Levi's and threaten its status as market leader.

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It's the late '60s and Levi's is seeking to stay on trend by tuning into the flower-power movement taking over San Francisco. 

But keeping up with the ever-shifting tides of fashion is harder than it looks and soon Europe will be taking jeans onto an unfamiliar battleground: the catwalk.

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It's the 1950s and young Americans are idolizing the new wave of Hollywood rebels and horrifying their parents by wearing jeans. 

But as these post-war renegades take denim duds out of the workplace, the jean giants find themselves between a rock and a hard place.

Do they hold fast to their traditional base of cowboys and factory workers, or embrace the teenagers who are adopting denim? 

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It's the mid-1800s and a young wholesaler called Levi Strauss is looking to cash in on the California Gold Rush.

But when a wandering tailor approaches Strauss with a revolutionary idea, his business takes an unexpected turn into the world of workwear — and it will change his family’s destiny.

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It's the 1930s and Californian jeans maker Levi Strauss & Co. is struggling. The Great Depression is destroying jobs and killing demand for its denim workwear.

So when a craze for the Old West boosts demand for jeans, Levi's and its rival Lee seize the moment. But then an unfamiliar stranger swaggers into town looking to make their battle a three-way shootout.

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COVID-19 has flipped the economy on its head. But the pandemic’s new normal has also created new opportunities. Against all odds, some businesses are actually thriving -- and we’re not just talking about streaming companies. Today we bring you a roundup of some of our favorite recent stories from our weekday news podcast, Business Wars Daily. 

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When Ernest and Joseph Gallo died in 2007, decades after their brother Julio, it put an end to a family saga that had stretched for the better part of a century. But the company the brothers founded is still going strong. On the show this week is Cyril Penn, Editor In Chief of Wine Business Monthly, a trade magazine for the wine industry. We’ll talk about the current state of the Gallo Family wine brand and how it fits in the wider California wine industry. Plus, we’ll bring in Barbara Bogaev, who wrote this series, for a quick chat about how she researched the story. 

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It’s the 1980’s and Gallo rockets to the top of the new lucrative wine cooler market with a brilliant ad campaign for its Bartles and Jaymes brand. But long held resentments, buried secrets and lurking distrust bubble up to the surface when the “unknown Gallo brother,” Joe, Jr., launches a cheese business under the label of Joseph Gallo. Now Ernest, Julio and Joe Jr. fight a final bitter trademark battle in court over the family fortune and legacy. 

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Heading into the turbulent 1960s, Ernest Gallo attempts to conquer the Midwestern wine market by taking on a dangerous associate of Al Capone in Chicago. 

As the company grows, the two Gallos join forces in consolidating their control over the family empire and edging their younger brother, Joe, Jr, out of the family business. But just as Gallo reaches the pinnacle of the industry, it gets caught in the middle of a major labor rights battle. Cesar Chavez and his United Farmworkers are fighting with the Teamsters union over who will represent grape pickers. Chavez’s Gallo Boycott is poised to become the company’s biggest public relations challenge yet.

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It’s the 1940s and as American soldiers battle the Axis powers overseas, Ernest and Julio Gallo fulfill lucrative government contracts for jet fuel ingredients made out of ethyl alcohol, known as "torpedo juice.” They also make a risky wager on the volatile grape market. When peace comes, the Gallo brothers pour their wartime windfall into developing the most aggressive and controversial sales techniques in the industry.

Towards the end of the 1950s Ernest Gallo creates a blockbuster new product aimed at black, urban consumers. Thunderbird — beloved by winos everywhere — rockets Gallo to the top, but drives a wedge between the high-minded winemaker Julio Gallo and his bottom-line obsessed brother, Ernest. 

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It’s the 1930s and with Prohibition finally over, Americans are eager to drown themselves in booze. Ernest Gallo persuades his reluctant brother, Julio, to partner with him on starting a winery. Ernest employs every trick in the book to bolster sales, including conning customers, flouting laws and dodging government inspectors. He then gives his younger brother Joe, Jr. a menial job in the family business, but mistreats him badly. And when Joe, Jr. comes of age, Ernest and Julio terminate their guardianship of him in a secretive manner that will haunt the family, and one day cast a terrible shadow over their empire. 

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It’s the roaring twenties and Joe Gallo Sr.’s two teenage sons, Ernest and Julio, help run the family’s extensive vineyards and bootlegging operations. Young Ernest plays a tricky game, dealing with Al Capone in Chicago and dodging G-men. But the stock market crash of ’29 pitches the family into a financial free fall, and drives their volatile father to become increasingly violent. Until, one fateful day, their parent’s lives come to a sudden, horrific and mysterious end. 

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It's the early 1900’s and two young brothers emigrate from Italy to the US to make their fortunes. In California, they con, grift and bamboozle their fellow immigrants out of thousands of dollars, enough to start a wine business. But when Prohibition shuts that down, they dive into the dangerous game of bootlegging, with disastrous results.  

The older brother has two young sons, Ernest and Julio Gallo. He doesn’t know it yet, but his sons will eventually transform his sketchy legacy into the largest wine company in the world, E & J Gallo Winery. 

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In 2009, Domino’s went into crisis mode after a prank threatened to ruin the brand’s already substandard image. You might say that was a wake up call. The company would go on to invest heavily in technology and delivery in the intervening years.

Meanwhile, Pizza Hut doubled down on its sit-in restaurants and fancier toppings, but their investment barely moved the needle on profits.

Now after 60 years of jockeying for the top spot in the pizza hierarchy, Domino’s has pulled out in front of its biggest competitor. But there are even more challenges coming to Pizza Hut and Domino’s, not to mention the entire restaurant industry itself.

To dig into this more David is joined by Sam Oches. He’s the editorial director of Food News Media, a B2B company specializing in the fast casual industry. 

For more on Sam Oches check out his podcast Fast Forward and QSR Magazine. 

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It’s 2009 and Domino’s is about to risk everything in a daring bid to shake off its reputation as the home of sub-par pizza.

But Pizza Hut’s having a hard time too. Its iconic red-roof restaurants are now holding it back, so the brand looks to satisfy America’s increasingly demanding palate.

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It’s the 1990s and Domino’s rapid rise on the back of its 30-minute delivery guarantee is about to smash straight into a legal roadblock. 

And while Domino’s extracts itself from the wreckage, Pizza Hut’s cooking up a new recipe for success. Its latest creation will horrify purists and help the chain fend off pizza’s newest player: Papa John’s.

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Last week, we gave you the first half of our interview with Seoul Taco Founder David Choi. If you didn't catch that part of our conversation, we encourage you to go back and check it out.

Since starting his Seoul Taco business eight years ago, Choi has expanded to seven total locations in Illinois and Missouri.

Today, we continue our conversation with Choi and learn more about his business philosophy, his work in the communities he serves, and what’s next for Seoul Taco.  

This episode is sponsored by the CitiBusiness® / AAdvantage® Platinum Select® card.

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It’s the late 1980s and Domino’s founder Tom Monaghan’s living the high life. After years of struggle, he’s a billionaire and he’s buying up plenty of status symbols to prove it. 

But as Pizza Hut tries to rally a counter-attack, a day of reckoning is fast approaching for the pizza delivery pioneer.

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It’s the ‘80s and Domino’s is gunning for Pizza Hut.

Domino’s has kickstarted the speediest expansion program in fast-food history and it’s not planning on stopping until it’s planted its flag in every corner of the USA.

But while Domino’s goes on the attack, Pizza Hut finds itself caught between a rock and a hard place.

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Before you’re ready for a full-fledged “Business War,” you need to start somewhere. David Choi put it all on the line and drained his bank account to buy his first food truck. 

Eight years later, Choi’s bold vision for Korean and Mexican fusion has made an impact on the culinary scene. 

In this episode, we hear from Choi about his humble beginnings, his hustle, and the importance of small businesses. 

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It’s the dawn of the 1970s and Pizza Hut is about to join America's business elite by floating on the stock exchange. But the Kansas pizza giant’s moment of triumph turns into defeat.

But while Pizza Hut’s been charming investors on Wall Street, Domino’s is living on skid row. And founder Tom Monaghan’s running out of time to save the day.

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It’s 1958 and on the East and West Coasts, all the cool cats are chowing down on pizza.

Yet in the heartland, far away from the buzz of New York and LA, pizza is still rarely seen, let alone eaten. But that’s all about to change, thanks to a new pizzeria opened by two brothers in a hut in Kansas.

And they’re not the only siblings with pie in the sky dreams. In Michigan, the Monaghan brothers are hoping to bring pizza to the nation’s front doors.

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In our last episode, Amazon had once again taken a financial hit to get ahead in the shipping game, cutting out its need for FedEx and UPS, and turning them into the competition. But there’s one more link in the shipping chain that FedEx, UPS and even Amazon hasn’t cut loose: The United States Postal Service.

Private shipping companies also sometimes hire the Post Office to take care of last-mile deliveries. But that might be changing as FedEx becomes more self-sufficient, and may plan to cut some of its ties with the USPS. Does that mean UPS will follow? And if so, will your shipping rates rise as the Post Office faces cutbacks later this year?

To learn more, David chats with Sucharita Kodali, a digital business strategy and e-commerce expert at Forrester Research. 

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Both FedEx and UPS are doing a lot of business with e-commerce companies, especially Amazon. But after one disastrous Christmas season when both companies have difficulty delivering in time for Christmas, Amazon decides it’s time to bring shipping in-house. Going forward, UPS and FedEx’s biggest rival may not be each other, but the company that was once their best customer.

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With UPS expanding aggressively into Europe and other continents, FedEx decides to bet big on China. But it’s a risky strategy that initially looks like it’s going to fall short.  

Meanwhile, UPS tries to maintain its competitive advantage by pushing for more productivity from its workers. But the drivers have had enough and UPS soon has a major labor relations problem on its hands. UPS’s troubles give FedEx an opening to peel away some of its business.

And at the dawn of the dot com era, both companies make a play for a new type of customer.

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UPS decides it’s time to expand its market outside North America and makes a big push into Western Europe. But it’s harder than expected to integrate its corporate culture with European norms.  

FedEx CEO Fred Smith eschews European expansion and goes all-in on a risky new service called ZapMail, much to his executive team’s dismay.  

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Finally financially stable, FedEx takes on the US government to overturn regulations that limit the size of the planes they can fly. Convinced the regulations are limiting its growth, FedEx launches a multi-pronged strategy to persuade Congress to change the rules.

And UPS realizes it needs to compete directly with FedEx and finally buys its own planes to offer next-day air service.   

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After a disastrous start, FedEx needs to change its sales pitch or it will run out of money before it even has a chance to take off.  Smith resorts to surprising means to raise the money to keep his fledgling company going.

UPS is convinced FedEx will be out of business in a matter of months.  But it has its own problems to attend to, as drivers are feeling dissatisfied and start to organize for better working conditions.  

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It’s the early 1970s, and 27-year-old Fred Smith has an idea for a new kind of package delivery service, one that uses its own planes to deliver packages in under 24 hours. Skeptics tell him the start-up costs are too high and the demand too low, but Smith thinks he’s found a way to make it work. He invests millions of his own money to get the new company started.  

But when one thing after another goes wrong, it looks like Smith might have made a big mistake. And that’s before he’s even had a chance to challenge one of the most respected companies in America: UPS. 

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Almost one in three relationships start as online encounters. But the popularity of dating apps isn’t surprising with so many to choose from, and the pandemic may even be boosting dating app use.

For more on how COVID-19 has changed online dating, and how apps are adapting, David speaks today with Ashley Carman, a senior reporter covering dating apps for The Verge. Carman is also Co-host of The Verge’s Why’d You Push That Button podcast. She’s here to talk about which apps are thriving, and what they’ve been doing right.

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https://podcasts.voxmedia.com/host/ashley-carman

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Whitney Wolfe Herd establishes Bumble with a strident anti-misogyny agenda, but that foundation is rocked when shocking accusations of sexual harassment surface against Wolfe Herd’s co-founder. 

Meanwhile, the revolutionary gay app Grindr goes through a scandalous upheaval when a Chinese company buys the company and installs a straight president.  

And the cyber dating world undergoes a major rethinking as the coronavirus ushers in unprecedented, devastating changes for singles and everyone else on the planet. 

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Niche apps are kicking into high gear for users with specific criteria, and there’s something for everyone: muzmatch for Muslims, Mouse Mingle for Disney fans, Twindog for canine lovers, Sizzl for bacon aficionados, Bristl for beard enthusiasts and Dead Meet for morticians and other death professionals. 

In the mainstream, Match and Tinder have a new, serious competitor: Whitney Wolfe Herd’s Bumble. The feminist app debuts to a huge response — and a stinging lawsuit from Wolfe Herd’s former employer, Tinder. 

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What seemed like a run of the mill office romance gone very, very wrong will result in a devastating upheaval in the power structure at Tinder. And repercussions will be felt throughout the industry as Whitney Wolfe exacts some delicious corporate revenge.

And as the cyber dating world is rocked by horrific violence against women, apps that put female users in the driver’s seat start to get serious traction. 

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A new app aimed at gay users is about to break open an entirely new feature that will redefine the cyber dating business. And a young man emerging from a shower gets his inspiration for a new hookup site as he wipes the steam from his mirror. 

Soon Tinder is on fire, but the conglomerate Match Group is determined to get a stranglehold on the market. And as the industry leaps from computer screens to mobile devices, things are heading into uncharted territory.

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Dr. Neil Clark Warren is a 63-year-old theologian and clinical psychologist with a vision for a site he’s certain can lead to romantic success. eHarmony will be the first to take on the powerful Match.com. And Warren believes he is on—quite literally—a sacred mission to offer something that Match.com can’t match.

eHarmony’s Christian agenda seems to be working, until the God stuff leads to serious disharmony. Dr. Warren doesn’t know it, but he’s headed for a holy war.

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It’s 1995, and computer dating is in its infancy. Most people think it’s a dark, sleazy world for desperate losers and horny perverts. But that’s all about to change. Pioneer site Match.com paves the way for cyber dating to move toward mainstream culture, but—in an era when few people even use a computer—it’s going to be a serious struggle.

And as the dating market blossoms, burgeoning companies will stop at nothing to get the coveted edge, fighting for hip cache, consumer convenience and tech advances. It’s a tough business, but all’s fair in online love and war.  

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Today we conclude our Diamond Wars series.

 These precious stones are known to be undeniably beautiful, rare and a symbol of luxury. But diamonds have also been associated with war, human rights abuses and death. In response, consumers these days are demanding more transparency about where stones are sourced. Some are seeking out less expensive gemstone alternatives or lab-grown diamonds. And even powerhouse companies like De Beers have taken strides to adapt.  

To find out more about the future of the diamond industry we’ll hear from Paul Zimnisky, an independent global diamond industry analyst. 

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It’s the 2000s and the diamond cartel is dead. Now, De Beers must adjust to its new status as the market leader rather than the monopoly. But the threats to its business aren’t going away.  

Diamonds are losing their luster with the young, and Zimbabwe’s undermining the industry’s response to conflict diamonds. And most threatening of all, a wave of new start ups are out to disrupt De Beers by growing man-made diamonds.

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It’s the late 1990s and rebel armies in Angola, Sierra Leone and Congo are bankrolling campaigns of mass murder and terror with diamonds. Now, after years of turning a blind eye, the diamond-buying public is starting to notice the bloodshed. 

But as the issue of so-called “blood diamonds” rises up the political agenda, De Beers is plotting what might be the boldest move yet in its long history: giving up its quest to control all the world’s diamonds.

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It’s 1966 and De Beers is about to abandon its eleven-year search for diamonds in Botswana. But the geologist behind the search is far from ready to pack up his tools.

And De Beers isn’t the only one searching for gemstones. Soon, a major diamond find in Australia will leave the diamond monopoly facing a big dilemma: should it seek to control or to destroy this Antipodean threat?

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It’s the early 1950s and West Africa’s growing number of diamond smugglers is causing headaches for De Beers. 

Faced with millions of pounds in losses, the diamond monopoly decides it’s time to get tough with the smugglers.

But while De Beers battles the illicit diamond traders, in the far east of the Soviet Union a new threat is brewing. 

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It’s 1940, and the world is at war. The Allies and Axis powers are scrambling to lock down supplies of the industrial diamonds needed to mass produce their tanks, planes and submarines.

But when the White House demands De Beers hands over a year’s supply of industrial diamonds, it soon learns the cartel is as hard to break as the diamonds it sells. 

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It’s 1914 and De Beers’s monopoly is under threat. Diamonds have been discovered on the desolate coast of the German colony of South West Africa.

So it hired an ambitious diamond expert named Ernest Oppenheimer and gave him his orders: head to the beach and assess the threat.

But then World War One disrupts De Beers chance to do a deal with the German diamond miners. Now, Oppenheimer sees his chance to scramble to the very top of the diamond industry.

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