I was mulling over investing in Expedia during the beginning of the pandemic. It made sense that travel would take a hit for a couple of years. And then it would likely come back. Plus, digital marketplaces are good at scaling up and down. But I didn’t buy as I feel more comfortable with Asia […]
Competitive moats (i.e., structural advantages) tend to be viewed as one thing. But it is usually two. And it is helpful to view it this way when looking at the impact of various digital tools. Here is how I separate it. Competitive advantages Barriers to entry and other soft advantages See the green part below. […]
Shein, a cross-border online DTC retailer, is transforming the fashion industry with its agile digital marketing and real-time fashion strategies. Founded by Chris Xu in 2008, Shein has grown to become a dominant player in the US fashion market, with its business model drawing significant attention. This article provides a comprehensive look into how Shein has upgraded fast fashion and its impact on the fashion industry.
In this podcast, Jeffrey Towson discusses how Adobe has been able to maintain its dominance in the software industry despite the rise of cloud-based alternatives. He argues that Adobe’s success is due to its focus on old-school software economics, such as network effects and recurring revenue. He explains that network effects make it more valuable for each user to join a platform as more users join, and that recurring revenue provides a steady stream of income that can be used to invest in new products and services.
Take-Away 1: Adobe Inc. is a good example of many of the strengths of traditional software economics. It has evolved and expanded over decades to become a full suite of creative tools. It is now trying to expand from creative tools to operating tools. Take-Away 2: However, purely digital companies need to protect their attractive […]
In this podcast, Jeffrey Towson discusses why he believes Airbnb will struggle to compete in Asia. He cites the following reasons: (1) Airbnb’s business model is not well-suited for the Asian market, (2) Airbnb faces stiff competition from local rivals, and (3) Airbnb’s valuation is too high.
Tencent’s acquisition of Sogou is a major deal that will have a significant impact on the Chinese search market. This deal is a sign of Tencent’s continued dominance in the Chinese tech industry, and it is a reminder of the importance of digital and information economics in the digital age.
There was a fascinating announcement from Alibaba. From CX Tech: “E-Commerce Giant Taobao Steps Into China’s Online Education Market” “Taobao, an e-commerce platform owned by Alibaba, is seeking to penetrate China’s already crowded online tutoring market with a massive plan aimed at connecting more than 1,000 online education service providers with 100 million new students […]
In this podcast, Jeffrey Towson discusses the competition between Grab, GoJek, and Lazada in the Southeast Asian services market. He identifies the most important factors for success in this market, including consumer engagement, merchant engagement, and platform business models. For example, Grab has been successful in capturing a large share of the consumer mind by offering a wide range of services, including ride-hailing, food delivery, and payments.
The Chinese services market is a hotly contested space, with Meituan, Ctrip, and Alibaba all vying for market share. In this episode of Jeff’s Asia Tech Class, Jeffrey Towson discusses the factors that will determine which company wins in this space. He talks about the importance of bundling services, network effects, and switching costs.