This week’s podcast is about how to profit from political involvement in China tech. But really it is about how to think systematically about the role of the State. And about how to benefit from the State as the mother-of-all catalysts.
You can sign-up for my webinar next week on retail tech at:
Here is the marketing material for OShares OGIGX.
Here is the Standard Digital Playbook:
- Target a 10x or 100x market opportunity.
- Grow users and revenue.
- Capture and grow cash gross margin. Not the %. The cash.
- Flood cash into new revenue streams and innovation to improve the user experience.
That playbook is all about building a digital business on the demand side. It is about identifying a big opportunity and then systematically improving the consumer experience and going after related consumer problems.
However, this also usually results in negative operating profits until sufficient scale is reached. The gross profits are positive but the operating profits are negative. Often for a long time. However, with increasing scale the operating leverage eventually kicks in and the big profits are revealed.
Here is a list for the Digital Basics:
- Growth and Scale
- Digital Core
- Ecosystem, Connectedness and Coordination-Based Business Models
- Leadership and Management
- People, Culture and Talent
- Operating Cash Flow. The Cash Engine.
- Lessons from Cheah Cheng Hye on China Stocks and Uncertain Terrains (Asia Tech Strategy – Daily Lesson / Update)
- Can Foodpanda / Delivery Hero Get to Profitable Scale in On-Demand Food? (Asia Tech Strategy – Daily Lesson / Update)
From the Concept Library, concepts for this article are:
- Digital Basics
- Digital Playbook (Standard)
From the Company Library, companies for this article are:
- Delivery Hero / Foodpanda
I write and speak about digital competition and China / Asia’s leading tech companies.
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