In Part 1, I laid out how to think about physical networks. For logistics, that means lots of warehouses and trucks doing various routes between them. In Part 2, I talked about one of the big competitive advantages of logistics networks, which is network effects. Note: These are significantly different than the network effects we […]
Ok. Let me see if I can impress you today. In Part 1, I wrote about ANE Logistics, an interesting Chinese company. But I really wanted to make a few points about the nature of logistics and physical networks: There is a difference between networks, platform business models and network effects. Physical networks are different […]
Logistics in China / Asia has been on my short list for a long time. There is a lot to like about this space. Logistics has a long-term secular growth trend. As countries and regions develop and grow, they generally ship more and more things around. It’s a slow but steady trend. We see that […]
ANE Logistics is a Chinese logistics company that uses a franchise model to operate a network of warehouses and trucks. The company’s founder, Jeff Towson, argues that ANE’s model has several advantages over traditional logistics companies. First, it allows ANE to scale more quickly and efficiently. Second, it gives ANE access to a wider range of talent and expertise. Third, it allows ANE to provide a more personalized level of service to its customers.
Info-dictators are individuals or organizations that control the flow of information in our world. They have the power to shape our opinions, beliefs, and behaviors. Mark Zuckerberg is one of the most powerful info-dictators in the world. He controls Facebook, which has over 2 billion users. This gives him the power to influence the outcome of elections, spread misinformation, and control the narrative.
In this podcast, Jeffrey Towson discusses the three types of network effects: direct, indirect, and standardization and interoperability. He explores how these different types of network effects can create value for businesses and consumers, and he discusses the challenges that businesses face in building and maintaining network effects. For example, he discusses how businesses need to invest in marketing and advertising to attract users, and how they need to keep users engaged with their products and services.
Network effects are the brass ring of the digital age. Companies and investors, especially venture capitalists, are actively reaching for them. And, like platform business models, they can have multiple important effects. Creating surprisingly durable competitive advantages is one of them. First some general comments and then I’ll go into three types of network effects. […]
In this podcast, Jeffrey Towson discusses three ways that network effects can “suck.” These include critical mass and chicken-and-egg problems, interaction failure at scale, and lock-in. Towson argues that network effects are not always the silver bullet that they are often made out to be, and that businesses should be aware of the potential downsides before relying on them.
In this podcast, Jeffrey Towson discusses whether Baidu can become the new AT&T in China. He considers factors such as Baidu’s strengths in search and artificial intelligence, as well as the challenges it faces from rivals like Alibaba and Tencent. For example, Baidu has a strong foothold in the Chinese search market, but it faces competition from Alibaba in the e-commerce market and Tencent in the social media market.
The coronavirus quarantine economy has supercharged the growth of live-streaming and KOLs (key opinion leaders) in China. Taobao Live, a live-streaming platform owned by Alibaba, has seen its user base and sales grow significantly in recent months. This trend is likely to continue as the Chinese economy reopens and consumers increasingly turn to digital channels for shopping and entertainment.