In the past weeks, I have sent you multiple emails with various types of competitive advantages. Such as switching costs, network effects, purchasing economies and location and transportation cost advantages. The links are below: Walmart, JD and Purchasing Economies at Traditional and Online Retailers (Asia Tech Strategy – Daily Lesson / Update) Beer, Southwest and […]
Take-Away 1: With reports of +1,000 new products being added to Shein every day, there is a lot of speculation that this is a newer, faster version of fast fashion. That may be true in the future. But today, Shein’s growth appears to be mostly from offering really low-priced apparel to Gen Z women on […]
In this podcast, Jeffrey Towson discusses the rise of Shein, a Chinese fast fashion retailer that has become one of the most popular online apparel brands in the world. He argues that Shein’s success is due to its low prices, its use of algorithms to design and market its products, and its rapid shipping times. He concludes that Shein is a disruptive force in the fashion industry and that its success could have implications for other retailers.
On a 2018 earnings call, Elon Musk said he disagreed with one of Warren Buffett’s core investment principles — that companies should use strategic “moats” to disengage with competitors. “If your only defense against invading armies is a moat, you will not last long,” Musk said. “What matters is the pace of innovation — that […]
In this podcast, Jeffrey Towson discusses the rise of OMO (online-merge-offline) platforms in China, such as Alibaba’s Sun Art and Beike / Lianjia. He argues that these platforms are disrupting the traditional retail and real estate industries. He explains that OMO platforms offer a number of advantages over traditional businesses, such as convenience, personalization, and data-driven insights.
In this episode of Tech Strategy Podcast, we delve into the emerging ecosystem of JD Logistics. Discover how this innovative approach is reshaping the logistics industry and influencing the broader tech landscape in Asia. Join us as we unpack the strategies and implications of this new type of ecosystem.
Online insurance company ZhongAn was the first mover in “digital meets insurance” in China. A strategy Ant Financial would later refer to in its IPO filing as “InsureTech”. And in both the ZhongAn and Ant cases, we saw: An awesome digital strategy and vision in a very big market. Limited traction after years of effort. […]
In this podcast, Jeffrey Towson discusses how revenue scale and operating leverage differ for software and AI companies. He argues that software companies can achieve economies of scale more easily than AI companies, which can lead to higher profit margins. Towson also discusses the importance of data and talent for AI companies, and how these factors can affect their ability to scale.
I have listed 5 types of platform business models: Marketplace and transaction platforms (e.g., Taobao, Meituan, Lazada) Innovation and audience-builder platforms (e.g., YouTube, TikTok, Android) Collaboration / coordination and standardization platforms (e.g., Slack, Microsoft Teams, Adobe) Payment platforms (e.g., MasterCard, Alipay) Learning platforms Here are examples of the first two. But I have not really […]
In this podcast, Jeffrey Towson discusses four problems with Michael Porter’s Five Forces framework. He argues that the framework does not work for dynamic and non-classical strategy terrains, platforms and ecosystems, SMILE marathon dimensions, particularly innovation, and the emergence of a connected, digital world.