In Part 1 and Part 2, I laid out a framework for Snowflake’s “data ecosystem” business model. I described it as +3 complementary platform business models with +4 network effects. And I think that explains most of what the company is doing right now. However, I also recently listened to an interview with CEO Frank […]
Most all sustainable growth is based on 1-2 strong cores. A profitable core is centered on the strongest position in terms of loyal customers, competitive advantage, unique skills, and ability to earn profits. To assess an adjacency move, consider the following factors: 1) how tightly the adjacency is tied to a strong core; 2) the attractiveness of the adjacency market; and 3) the ability to capture economic leadership in that market.
Growth, ROIC, and growth+sales are all important factors to consider when valuing a digital business. Growth is important because it shows that the business is expanding and has the potential to generate more revenue in the future. ROIC is important because it shows how efficiently the business is using its capital. Growth+sales is important because it shows how much revenue the business is generating from each new customer.
Pinduoduo (PDD) has really stood out in digital – both for its ability to break into a market dominated by Alibaba and JD and for the stunning speed of its growth. Founded in 2015, PDD has grown to +800M users in six years. It grew to +$9B in revenue. Upon reaching a +$100B market cap, […]
In 2009, Brian Acton and Jan Koum founded WhatsApp to ride the wave of mobile apps kicked off by the launch of the iPhone. The original purpose of WhatsApp was to put a status notification next to your name, to let people know “what’s up”. But the small team noticed three important things that would launch their […]
In November 2020, beauty unicorn Perfect Diary went public in the USA after 4 years of stunning growth. Founded in 2016, the company rose to become the #1 (or #2) make-up brand online in China. And they did it mostly by growth hacking the major ecommerce and social media platforms of China. I thought Perfect […]