I’ve mentioned externalizing capabilities as a strategic move many times. I thought I would detail that out. It’s common strategy in digital business models. And it has been very effective at Alibaba and Amazon in particular. Several years ago, I summarized the evolution of Alibaba’s platform business models in 7 graphics. The Rise of Alibaba […]
In Part 1, I argued that Amazon’s ecommerce business was getting stronger over time (in terms of competitive strength). It has an impressive series of competitive advantages. Amazon Has a Winning Long-Term Strategy. Amazon Prime and Netflix Don’t. (1 of 2) (US-Asia Tech Strategy – Daily Article) I also teed up the idea that Amazon’s […]
In this podcast, Jeffrey Towson discusses how Amazon’s moat in ecommerce is growing, while its moat in video is falling. He compares Amazon’s video business to Netflix and argues that Amazon will need to make some changes in order to maintain its leadership position.
I’ve discussed Amazon’s basic business model in an article and podcast. What Amazon Should Copy from Alibaba and Pinduoduo (Tech Strategy – Podcast 124) Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article) And I basically argued that I look for 3 things in this type of […]
Amazon can learn a lot from Alibaba and Pinduoduo in terms of how to improve its consumer experience. Alibaba has integrated its ecommerce products with entertainment, payment, credit, and wealth management products, while Pinduoduo has focused on social commerce and group buying. Amazon could benefit from adopting some of these strategies in order to stay ahead of the competition.
I break competitive advantages into those on the demand-side and those on the cost / supply-side. Plus government-granted advantages. It results in a list of 15 types. On the demand-side, everyone dreams of network effects. Especially for digital businesses. But these are actually quite rare. On the cost and supply-side, companies talk a lot about […]
Moats are competitive advantages that can be difficult to create and maintain, but they can be very valuable for businesses. They can be either offensive or defensive, and they can be used to protect market share or expand into new markets.
Some of the important points from this article are that:
Moats can be difficult to create and maintain, but they can be very valuable for businesses.
Moats can be either offensive or defensive, and they can be used to protect market share or expand into new markets.
Sustainable moats are essential for long-term success.
Huawei has just announced its 2021 financial results, with the title “Solid Operations, Investing in the Future”. That is actually a pretty good summary of their strategy post-US tech ban. It was also interesting because CFO Meng Wanzhou is now back in China, after years in Canadian custody. She presented the financial results, along with […]
Southeast Asian tech giant Grab is facing a difficult choice: should it focus on profitability or growth? This article explores the pros and cons of each strategy and discusses the potential outcomes for Grab. Ultimately, the decision of whether to focus on profitability or growth will depend on a number of factors, including the company’s financial situation, its competitive landscape, and its long-term goals.
In this podcast, Jeffrey Towson discusses how customer capture can be a competitive advantage in digital businesses. He explains the different levels of competition and provides a checklist for building a competitive advantage. Towson argues that customer capture is becoming increasingly important in the digital age, as businesses compete for attention and loyalty. He provides examples of companies that have successfully built competitive advantages through customer capture, such as Amazon and Netflix.