LIU Management Shopify Essay

Change Management
Control vrs. Shaping
Controlling & Shaping

Images of managing:

Controlling: This is representative of many of the dominant views associated with
top-down management. It is based on controlling the activities in the organization.
It can be illustrated by characteristics of management – planning, organizing,
commanding, coordinating and controlling.

Shaping: This illustrates a more participative style of management. It attempts to
mold change outcomes through encouraging a variety of players within the
organization to be involved in the various stages of change. This view focuses on
improving the capabilities of the organization.
Outcomes

Images of change outcomes:

Intended: This view regards change as a result of planned action instigated and
influenced by a change manager.

Partially intended: Research in change management has shown that there is often
a discrepancy between the change that is planned and that which occurred. The
intended outcomes of change may require re-modification during the
implementation process, the result of which is partially intended change.

Unintended: Often there are forces beyond the control of the change manager that
greatly influence the outcomes of change and these can impede any attempts to
achieve intended change within an organization. There are a plethora of internal
or external factors that prevail over the impact of the change manager.
Images of Change
Images of Managing
Controlling…
(activities)
Shaping…
(capabilities)
Intended
DIRECTOR
COACH
Partially Intended
NAVIGATOR
INTERPRETER
Unintended
CARETAKER
NURTURER
Images of Change
Outcomes
CONTROLLING

Controlling includes three Images of Change:

DIRECTOR

NAVIGATOR

CARETAKER
Director

Director:

This is based on an image of management as control and of change outcomes
as being achievable.

It is up to the Change Manager (CM) to direct the organization in order to
produce desired results

(e.g If the CM decides to realign the organization by providing a new IT
system, it is assumed that this can be done, it will work and the outcome will
be a better performing organization.
Director – Theoretical underpinning

Director uses a variety of models that outline certain steps needed to take
place in order for change to happen

Kotter 8 Step Model

There will be several best ways to implement change

The theory that change can be directed is based on various factors- Scale of
change, urgency, and the receptiveness of the stakeholders, etc.
Navigator

Navigator:

Here control is still seen as at the heart of management action, although a
variety of factors external to managers mean that while they may achieve
some intended change outcomes, others will occur over which they have little
control.

(e.g. CM may put cross-functional teams in place (Intentional Outcome) she
may not be able to make them work together. Departments may fight over
who gets credit for project (Unintended outcome).

Managing change is only partially controllable, with CM navigating the process
of toward an outcome – not all of which is intentional
Navigator -Theoretical Underpinning

Change is a process that unfolds differently over time and according to the
context in which the org finds itself

Change is a process that unfolds through the interplay of multiple variables

It is up to the change managers to navigate through the variables

Even when this happens, the CM must take into account that there will be
unanticipated disruptions

Should use bottom – up approach
Caretaker

Caretaker:

Although the management action is still focused on control in this image, the
change manager’s ability to control is severely impeded by a variety of
internal and external forces beyond the scope of the manager. The caretaker
is seen as shepherding their organizations along as best they can.

(e.g. CM tries to promote innovative behavior in the org, but the org grows,
becomes more bureaucratic, processes are centralized, new rules and
procedures are instituted. Growth and the issues associated with it are
outside of the CM control).
Caretaker – Theoretical Underpinning
Caretaking involves:
Life-Cycle Theory – Organizations pass through well defined states from birthgrowth-death
Little CM can do to stop natural progression – caretakers of the organization as it
passes through
SHAPING

Shaping includes three Images of Change:

COACH

INTERPRETER

NURTURER
Coach

The Coach believes that building the right set of values in an organization will
bring about desired change

A Coach will develop, “Skills & Drills” to assist the company stakeholders in
the pursuit of successful change.

(e.g. A Coach will set up HR in-services for the staff in order to educate all
employees on new HR policies and procedures).
Coach – Theoretical Underpinning

Organizational Development theories support the Coach Image

Stresses the importance of humanism, democracy and individual development

CM acts as Coach by helping to “structure activities to help the organization
members solve their own problems and learn to do that better”.
Interpreter

Interpreter:

The manager creates meaning for other organizational members, helping
them to make sense of various organizational events and actions. Only some
of these meanings are realized as change outcomes, however, and these must
be legitimized by the change manager.

E.g. The Interpreter will hold, “Town Halls” to discuss and explain new
policies and procedures being put in place by new management.
Interpreter – Theoretical Underpinning
“Sense Making” approaches – Karl Weick
A central focus is needed on the structuring processes and flows through which
organizational work occurs.
Organizations are viewed as being in an ongoing sate of accomplishment and reaccomplishment with routines constantly undergoing adjustments
Nurturer

Nurturer:

This image assumes that even small changes may have a large impact on
organizations and managers are not able to control the outcome of these
changes.

However, they may nurture their organizations, facilitating organizational
qualities that enable positive self-organizing to occur. Specific change
outcomes can not be controlled but rather they are shaped and emerge by
the organizational qualities and capabilities.

(e.g. The Nurturer will educate and assist employees with a new management
evaluation system. The Nurturer cannot control or predict what will be said
by employees about management).
Nurturer – Theoretical Underpinning

Organizational change is non-linear and does not necessarily entail growth

Companies continuously regenerate themselves through adaptive learning
Uses

These six images of change managers have three core uses:

They highlight a variety of assumptions change managers make about change and
increase the awareness of different interpretations of change.

They draw attention to the dominant images of change within an organization.

They highlight a range of perspectives available to change managers.
Blurred Lines
The Six-Images framework indicates that organization can blur the lines between
images. There is no one image that will serve all organizations. CM find
themselves amalgamating images to address situations that arise.
Types of Change
2 Kinds
For the purposes of our course, we can classify Change in two ways,
FIRST ORDER INCREMENTAL
SECOND ORDER TRANSFORMATIONAL
1st Order Incremental
•
May involve adjustments in systems, processes or structures
•
Does not involve fundamental change in strategy, core values or corporate
identity.
•
Maintain and develop the organization
2nd Order Transformational
Transformation is radical and fundamentally alters the organization to the core
Concentrates on transforming the organization rather than developing it
Whatever Floats Your Boat
The difference between 1st & 2nd Order are illustrated as follows:
A boat is afloat in the water.
(A)
If we want it to stay in the same place, we must make small adjustments that
take into consideration, wind, currents, tides etc. By doing so, the boat
remains in the same position. (1st Order)
(B)
If we want to take the boat beyond the original position and to a new point
we would have to adjust the sails, start the engine, steer the vessel. The
result is that the boat moves to a new position in the water. (2nd Order)
Scale of Change
1st Order – Seen as small incremental and adaptive
2nd Order – Large scale and disruptive
Home Improvement
A home construction crew garners a contract to renovate 2 houses.
(A)
House #1. The crew goes in on Monday and removes the kitchen cupboards.
On Tuesday the put in new cupboards. On Wednesday they remove the
flooring. On Thursday the put in new flooring. The crew continues to make
small incremental changes until the kitchen is fully renovated. (1st Order)
(B)
House #2. The crew goes in and totally rips out the kitchen. Then they tear
down the garage, put an addition on to the back of the house, lift it off the
foundation and put in a new chimney. The changes are sudden and
disruptive.
(2nd Order)
Conclusion
Organizations usually implement change in either form; 1st Order Incremental or
2nd Order Transformational.
You company selected one or possible parts of each form to implement their
change(s).
Identify what type of change(s) took place will help us understand how to deal
with the change and what follows as a result of the change.
Resistance To Change
Workshop # 1
Change is Tri-dimensional

Affective – How a person feels about change (e.g angry, distrustful)

Cognitive – How a person thinks about change (e.g. This is crazy)

Behavioral – What a person does in the face of change
Active Resistance
Active resistance occurs when a change is interpreted as directly in conflict with key
elements of the organizational identity.
Examples:

Ridiculing

Appealing to fear

Blaming

Accusing

Sabotaging

Finding fault
Passive Resistance
Passive Resistance occurs when managers exhort subordinates to implement a
change without first clarifying the connection between the change and some
aspect of the organizational identity.
Examples:

Agreeing verbally but not following through

Procrastinating

Feigning ignorance

Withholding information

Standing by and allowing the change to fail
Why People Resist Change
DISLIKE OF CHANGE

People sometimes express an emotional response to the change

“ I am happy with the way things are…”
Discomfort with Uncertainty

Some people are uncomfortable with the uncertainty that the lack the skills &
capabilities needed in the post-change situation

Key: The lack of supporting action by the individual is due to the lack of a
clear understanding of what the supporting action should look like.

(e.g. When we move you into cubicles that will create an environment of
collaboration)
Attachment to Established
Organizational Culture

“…the way we do things around here…”

People sometimes get used to the norms of an organization.

Readiness for change can be significantly affected by the degree of
attachment to the existing culture.
Excessive Change
Too many changes immediately
People fear that their time, energy and resources are being used for other
changes that do not affect them or that they agree with
Images of Resistance to Change
DIRECTOR
Resistance is a sign that not everyone is on board with change.
Resistance to change can be overcome
Caretaker
Resistance is possible but likely to be short lived and ultimately futile
Changes will occur regardless of the attempts individual attempts to halt them
Resistance is only temporary delay
Navigator
Resistance is expected
Not necessary a sign of people being out of their comfort zone
There are different interests in the organization that may be undermined by
change
Coach
Resistance needs to recognized as it takes people out of their comfort zone
Need to develop “teamwork” approach to dealing with change
Encouragement for the benefits of change need to be exhibited
Interpreter
Resistance is likely where people lack understanding of “what is going on”.
Making sense of change
Clarifying what it means – and to whom
Nurturer
Change will occur but not always in a predictable way
Resisting change is a matter of guesswork
Change is chaotic and people need support dealing with it
Methods for Managing Resistance to
Change
Method: Education & Communication – Inform people as to the rationale for the
change
Context: Use method where resistance is due to lack of information or
misinformation has been provided
Participation & Involvement (P&I)
Method: Involving people in the change as active participants
Context: Use method where resistance is a reaction to a sense of exclusion from
the process
Facilitation & Support ( F&S)
Method- F&S: Proving resources – both technical and emotional
Context: Use the method where resistance is due to anxiety and uncertainty
Negotiation & Agreement (N&A)
Method: N&A – Offering incentives to actual or potential resistors
Context: Use method where resistors are in a strong position to undermine the
change if their concerns are not addressed
Manipulation & Cooptation (M&C)
Method: M&C – Selective use of information; ”buying” the support of certain
individuals by giving them key roles in the change process
Context: Use the method where participation, facilitation or negotiation is too
time-consuming or resource demanding
Explicit & Implicit Coercion (EIC)
Method: EIC- Threatening people with undesirable consequences (e.g. firing) if
they resist
Context: Use Method where the change recipients have little capacity to
effectively resist; where survival or the organization is at risk if change does not
occur
Conclusion
As a change manager you should expect resistance. Develop a “resistance
profile” that identifies:
1.
Likely resistors and reasons for resistance
2.
Strength of the resistance
3.
Potential for the resistance to undermine change
4.
What image of resistance is present or needed
5.
What method of managing resistance is require
Remember resistance can be mitigated but rarely, if ever, eliminated.
SHOPIFY
Shopify
Name
Course
Date due
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Executive Summary
Shopify is Canada’s largest corporation and the second-largest online retailer in the
world. It’s a success story that has undergone many change processes even before it was
formally created. Shopify was the result of a group of entrepreneurs not being able to find an
online platform that could help them sell snowboards.
After many years of constant growth of its consumer base, but also constant financial
struggles; Shopify was able to successfully increase its consumers, buyers, and profits all at the
same time. The Covid pandemic provided the perfect scenario for the company to flourish, but it
also created an important growth crisis.
As the number of customers increased exponentially due to stores closing due to
mandatory lockdowns, the company faced the need for change processes. No one expected
Covid to hit as hard as it did, and on average more than 20,000 businesses turned to Shopify to
migrate their traditional brick-and-mortar stores to online retailing.
This required significant changes since the company was also affected by the mandatory
lockdowns. It was able to successfully establish remote work teams. But that was just the
beginning since the company’s services and online resources were not prepared for a sudden
huge increase in customers. Several new services were launched to assist small business owners
that had little or no experience. Many of these new services required significant adjustments and
updates.
Even though Shopify was able to successfully carry out these changes, it also faced
internal problems and resistance. One of its highest executives left the company and a new
President of the board was appointed. Eventually, all the hard work paid off, but the company
now faces new challenges if it wants to overtake Amazon.
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Table of Contents
Introduction
4
Shopify’s History
4
Management’s Role in Change Processes
5
Change is Necessary to Sustain Growth
7
Internal and External Pressures
10
Types of Change
10
Challenges that Shopify still Faces
11
Consequences of Managing Change Processes Successfully
12
Conclusions
13
References
14
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Introduction
Shopify’s story started back in 2004 with three friends trying to sell snowboards. Trying
to open a small e-commerce store was a great challenge and a big disappointment for the three
entrepreneurs. Finally, the group’s software programmer decided to change this. Tobias Lutke
designed a platform that would help them sell their snowboards but soon realized that the
platform was better suited for helping other small businesses. Fast forward 15 years and Shopify
is now the most valuable Canadian corporation. The company has gone through many significant
change processes as a result of establishing its operations and starting to grow. But none of these
changes were as significant nor relevant as what occurred in the past two years. As the Covid
pandemic crushed the world economy and small businesses were forced to close due to
mandatory lockdowns, Shopify came to the rescue. It managed to succeed during these past two
chaotic years, but unlike other tech giants, Shopify’s success is based on helping small firms.
This paper covers the last two years since they consolidated the company’s market position and
turned it into the second-largest online retailer in the world.
Shopify’s History
Shopify’s numbers are impressive, but it was a long way before the company could
consolidate its market position. After the company was founded in 2006, the first years were
very rocky with one of the three original founders (Scott Lake) leaving the company while it was
only a small startup. That left Tobias Lutke and Daniel Weinand in a very difficult since Lake
was the person that managed the company. Lutke assumed the role of CEO when the efforts to
find a suitable replacement for Lake failed. Lutke is the technological guru and Weinand is the
creative guy, but none had any management experience. Luckily for them, they managed to
convince investors that they would succeed. By the following year, they launched their
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application programming interface (API) to help them manage online sales and launched Shopify
payments in 2013. This period also resulted in high growth since total customers increased from
13,000 to 130,000 by 2015. But the finances were not really good, and as Lutke stated in the
2017 annual report, their goal was not to achieve certain financial ratios, but instead, it is to get
the business growing (Withers, 2020).
All this work was not enough to get the company ready for the challenges that would
result from the Covid pandemic. During the last quarter of 2019, before the Covid pandemic
reached most Western countries, Shopify’s total quarterly revenues were $505.2 million with a
net income of only $0.8 million. Total gross merchandise volume for Q4, 2019 was $20.6 billion.
As part of the corporate expansion plan, Shopify had acquired 6 River Systems in order to
optimize its warehouse solutions business (Shopify, 2020).
If we move forward to the third quarter of 2021 (last reported quarter), the numbers have
changed significantly. Total revenues increased to $1,123.7 million, GMV increased to $41.8
billion, and profits increased to $102.8 million (Shopify, 2022b). The company’s stock price two
years ago, on 02/04/2020, was $485.46, and on 02/04/2022 it is $876 (Yahoo Finance, 2022).
The radical differences in numbers and amounts are not limited to financials only; back in 2019,
Shopify had 5,000 employees mostly located in Canada, and the United States. European offices
employed a relatively small number of people. Today, it has over 7,000 employees working in 12
different countries and more importantly, started a Work From Anywhere program that fosters
remote work (Shopify, 2022a). As stated by the company, “Shopify went global by default”.
Management’s Role in Change Processes
Tobias Lutke remains as Shopify’s CEO but there were significant changes in the
company’s board of directors. One of the most significant additions to the board was Harley
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Finkelstein who was appointed President of the board in 2020. Several board members and upper
management executives are also new, including Fidji Simo who is also part of Instacart. She
joined the company to solidify the business relationship between Shopify and Instacart. Three of
the highest executive positions also changed during 2021, including a new Chief Technology
Officer (Allan Leinwand), a new Chief Information Security Officer (John Asante), and a new
General Counsel (Jess Hertz). They all joined the company invited by Finkelstein in order to
carry out change processes that would allow continuous growth. The company has been so
successful during the last couple of years, that a growth crisis occurred.
Shopify’s customers are mostly small businesses. It is an online retailer that doesn’t sell
goods or services to final customers, it provides a selling platform to other businesses. Their
customers doubled and most of them had little or no experience with online retailing. That is the
whole purpose of Shopify, to provide a feasible alternative for small retailers that have no
specific experience. But these past two years also brought several changes besides just growing
internally and externally. The world witnessed as many traditional brick and mortar retailers
went bankrupt, and how Tik Tok took over the social media world.
In a similar way that Mark Zuckerberg is the tech guru in Facebook, but Sheryl Sandberg
managed the company and made it grow; Lutke is the tech brain behind Shopify and Finkelstein
is the executive that has been in charge of managing growth. Lutke’s image represents the
director that is in control of the situation and plans the change process and strategy. On the other
hand, Finkelstein represents the interpreter that spreads the meaning of the change process within
the organization. He assumed the role of transformational leader under unique circumstances and
has done it successfully.
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Change is Necessary to Sustain Growth
As the pandemic resulted in strict lockdowns in many countries, small businesses were
forced to change their business model. Shopify was there to help them. Shopify is an invisible
retailer that provides an efficient platform that is used by other companies to operate online and
reach more customers. But handling over 1.7 million online websites that can be constantly
updated by its clients is a real challenge. The number of buying customers increased from 218
million in 2019 to 457 million in just nine months was something the company was not prepared
for. Several changes had to be implemented in a very short time.
As the number of customers and online retailers increased, the number of employees also
increased. In less than one year, the company had expanded its workforce by 40%, from 5,000 to
7,000 employees. Usually, this significant increase would result in the company opening new
offices, but the Covid pandemic was an obstacle. The solution to this dilemma was remote work.
At first, remote work was a necessity and was something new in Shopify. Since their workforce
was not that large compared to other tech giants, Shopify had been able to open offices mostly in
Canada and in the United States. This was not feasible anymore, but Shopify was able to adjust
very quickly, and its employees were divided into virtual workgroups. Managing virtual work is
not the same as managing a team working inside an office. Shopify’s organizational culture is
extremely flat with very few hierarchical levels. This meant that remote workgroups would have
to self-manage. Empowering employees is generally a good thing under normal circumstances,
but the circumstances were not normal. Eventually, the company succeeded in managing remote
work and they turned the program into something permanent now. Work From Anywhere is
permanent now and allows individuals to work remotely or in a hybrid manner. Those that
choose to work at the office can also work remotely for up to 90 days per year.
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The other great challenge faced by the company was to provide technical support to a
growing number of companies. The number of businesses that joined Shopify during 2020 was
750 thousand. That means that on average more than 20,000 new businesses were demanding
Shopify’s services each day. To complicate things even more, Shopify started to offer
warehousing services to its customers and wasn’t ready for such high demand either. This is the
reason why it acquired 6 River Systems. The company had to make several changes to its
operating platform in order to serve the growing number of small businesses that demanded their
services. Shopify had to launch several new products that targeted different users, for example,
Shopify Markets is a tool specially designed for small businesses and entrepreneurship. Shopify
Balance was launched as a money management solution. Since the vast majority of sales are
carried out through mobile devices, and Tik Tok became the number one social media platform,
Shopify launched its Tik Tok Shopping tool. It also had to update its POS software and upgrade
the services offered in foreign countries. Shipping services were only available in the United
States and Canada before the Covid pandemic, and the company started to implement them in
European countries as sales grew. In order to attract and retain developer talent, Shopify
eliminated any commissions charged for the first one million dollars that app developers earn
through their app store. It also launched its Global ERP Program and its own music channel on
Spotify. Ironically, Shopify also opened a brick-and-mortar store in New York to offer its
products. Shopify’s Pay Installments and Fulfillment Network were also launched.
Besides the new services offered, Shopify also modified many of its existing services to
help new businesses adapt to online commerce. For example, it extended its free trial period to
90 days. It also helped organize in-store and curbside pickup and deliveries for small businesses.
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It increased the funding of Shopify Capital which is used to provide financial services to its
customers.
The new products and changes to existing products described were mostly launched as a
reaction to the growing number of businesses. Under normal circumstances, it would take years
to launch such a high number of products. Most of them were projects that the company was
evaluating, but it had to skip many development phases when the demand grew exponentially. It
had to provide solutions, and fast. Most of the new products were launched to help small
businesses. Every company has limited resources, and when it faces unexpected growth, it tries
to offer the best services it can. Most of these new services had to be adjusted and polished over
the past two years. Shopify didn’t plan to launch them all together in such a short period. Many
of them were launched and then revised as customer feedback was available. For example, it was
necessary to acquire 6 River Systems in order to launch Shopify Fulfillment Network which
handles warehousing services. Before the acquisition, Shopify tried to develop the services but
didn’t have time to finish the project. As the demand for warehousing services increased, the
company had to search for external providers. In a similar manner, Shopify Capital had to raise
funds several times since the demand for financing online stores was higher than expected.
Companies have to engage in significant change processes for two main reasons; either
their business model starts to fail, or they become very successful in a short period of time.
Shopify was already a successful corporation before the Covid pandemic. It was growing at
approximately 20-22% per year, which was much faster than overall internet sales.
Many online companies benefitted from the Covid pandemic as their revenues increased,
but the difference is that Shopify’s business model depends mostly on the success of small
businesses. This is the reason why the company had to adjust its platform so many times.
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Internal and External Pressures
The external pressures that accelerated change were the Covid pandemic and the strict
lockdowns imposed in most countries. As millions of small businesses were forced to close for
several months, they had to find a way to keep selling. Small businesses cannot afford to not sell
anything for long periods of time. They simply do not have the finances to survive. Shopify
provided an alternative that was suitable for business owners that had little or no experience with
online retailing. Most of the new services launched by the company were aimed at making the
transition from traditional sales to online sales easier and smooth.
Change is never easy, and Shopify had its share of internal conflicts during 2020. Craig
Miller was the company’s Chief Product Officer but decide to leave the company in the middle
of the pandemic. He didn’t leave the company to take another high-profile job, he simply left
(Silcoff, 2020). Lutke had been the company’s CEO and President until then and Finkelstein was
the Chief Operating Officer. Lutke decided to assume Miller’s role and promoted Finkelstein to
President. Personally, I believe that the timing of Miller’s departure and the fact that Lutke
assumed his role are not a coincidence. Shopify was facing a huge challenge and was expanding
its services and launching new services very rapidly, and the person in charge decided to leave.
This event followed the logic of Lutke representing the image of the director of change and
Finkelstein being the interpreter of change. Both worked closely together and Lutke probably
realized that he needed Finkelstein to assume greater responsibility and help with managing the
organization while he took care of new product launches.
Types of Change
The change processes that took place in Shopify were mostly first-order changes. They
are basically an expansion or improvement of existing processes and organization structures. The
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only change process that was disruptive and can be classified as second-order was organizing
remote work teams. After analyzing the company’s quarterly reports, a trend stands out; several
services were launched, and they were soon updated or replaced by new services. Since the
company wasn’t expecting such high demand, its new services were probably not finished or
polished. It is normal that software is updated on a constant basis, but it is mostly done every
year or so unless there is a significant error that must be solved. But Shopify updated or replaced
most of its new services really fast. This is why most of the change processes involved
expansions or corrections of previous services. It is likely that it is also the reason why Craig
Miller left the company so abruptly. Change processes create tensions and that leads to shifts in
staff including high-profile executives.
The second-order process was probably the hardest to carry out since most lockdowns
were announced suddenly by governments. It is hard to imagine a company having to switch
from working at the office to completely working remotely with just a few days of notice. This
creates a huge organizational problem. This happened to many companies, not just Shopify. The
difference is that high-tech companies that work online can usually adapt faster to remote work.
This doesn’t mean that it is an easy process since it represents a disruption of normal work
schedules and routines.
Challenges that Shopify still Faces
One of the most significant challenges that Shopify and many other high-tech firms face
today is to keep the high growth rates. The value of the company’s stock had reached an all-time
high of $1,690.60 during 2021, which was a tremendous increase from the price in March 2020
($339). Shopify’s stock price increased by almost 500%, but now it has fallen almost 50% from
its all-time high. As the world returns to a normal economy, Shopify will need to convince its
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customers to keep focusing on online sales. This will not be easy, and it is also the reason why
the company is offering its warehousing services as an alternative to brick-and-mortar stores.
The company grew tremendously during 2020 and 2021, but it is probable that the company’s
growth will stall. This creates new challenges since stock markets, investors, and banks demand
online companies to grow consistently even if it is not something realistic. The following graph
was prepared by Yahoo Finance, and it shows stock prices for the last two years.
Another challenge faced by Shopify is that the majority of its sales are still concentrated
in the United States and Canada. Only 27% of its sales occur in other countries (Shopify, 2022b).
This is a significant improvement from pre-Covid sales, but it is not enough. The company
started a globalization campaign, and it has to continue.
Consequences of Managing Change Processes Successfully
Even though Shopify’s stock price decreased during the past two months, the company
still has the potential to keep adding new customers and expanding its services. Right now, only
Amazon sells more products online than Shopify, but Shopify is offering its Amazon Integration
tool. Shopify is more flexible and as the number of services offered increases, more customers
will be tempted to use both platforms. Shopify was able to successfully increase the number of
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businesses working with them, the number of customers purchasing their products, and its total
revenues and profits. The change processes carried out by Lutke and Finkelstein paid off and the
company must continue to expand its services. Right now, Shopify has consolidated its position
as the regional leader in online retailing. The company managed to gain market share in several
foreign countries, and it will be key to becoming the number one online retailer in the world. The
most significant difference between Amazon and Shopify is that Amazon operates globally.
Shopify has started its globalization process and it will be the next challenge that requires new
change processes, but the company has proven that it has the human and technical resources to
do it.
Conclusions
There is no doubt that online retailing will keep growing and eventually online retailers
will become the largest retailers in the world. Shopify is the second-largest online retailer in the
world, and the past two years have been very positive for the company. No one was expecting
Covid and its consequences, but even though the company faced some obstacles, it was able to
increase the services it provides and the number of users. It was not an easy task since it required
many adjustments and also a lot of trial and error. Many times, innovation requires trial and
error. Shopify did eventually overcome many technical and organizational hurdles and was able
to carry out change processes effectively.
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References
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https://www.theglobeandmail.com/business/article-shopifys-harley-finkelstein-becomespresident-tobias-lutke-adds/
Withers, B. (2020, September 10). 5 Things You Didn’t Know About Shopify. The Motley Fool.
https://www.fool.com/investing/2020/09/10/5-things-you-didnt-know-aboutshopify/#:%7E:text=In%202008%20co%2Dfounder%20and,but%20the%20search%20w
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