This week’s podcast is on Airbnb and what I think people are getting wrong about its business model and future in Asia. Which has some effect on how you would value it going forward.
Advantages of first mover in tech can include:
- Bigger advantages:
- Temporary supply-demand imbalance
- Increasing returns to scale
- Switching costs
- Network effects
- Learning effects
- Smaller advantages:
- Brand loyalty
- Technological leadership
- Scarce assets in tech
Disadvantages of first mover in tech can include:
- High failure rate
- R&D expenses on successful and unsuccessful tech.
- Cost of building production processes and complementary goods not available in the market
- Cost and difficulty of developing suppliers and distribution channels.
- Cost and difficulty of building consumer awareness and education
- Availability of enabling technologies and infrastructure
- Uncertainty of customer requirements
Related podcasts and articles:
Concepts for this class.
- Increasing Returns to Tech Adoption
- First Mover Advantages and Disadvantages.
- Path Dependency
- Resource Based Competition
- Core Competency
- Supply-Demand Imbalance
Companies for this class:
- #32: Innovation, Adaptation and Resilience as Competitive Strategy
I write and speak about digital China and Asia’s latest tech trends.
I also run Jeff’s Asia Tech Class, a podcast and subscription newsletter on the strategies of China / Asia tech companies.
This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.