I have talked a lot about competitive advantages on the demand side (sometimes called revenue advantages). These are structural advantages that enable premium pricing, repeat purchases, higher ROIC and / or stable marketshare over longer periods of time. For example, I have spoken a lot on the podcast about switching costs. That is really my […]
I’ve been teaching a private equity class at CEIBS in Shanghai for like 5 years. I call it private equity but it’s really about how to analyze companies and investments. Regardless of whether it is private or public. Whether the approach is active or passive. It’s basically my checklists, which are 9 questions. I’ve mentioned […]
Xiaomi is an important company. And it has really important strategy lessons. I think there are 5. But the big question that cuts across all of them is: Can the company’s operational excellence compensate for its weak business model? Here’s my take. Lesson 1: Xiaomi’s Foundational Asset Was World Class Tech Management. From its founding […]
This week was the annual WeChat Open Class conference in Guangzhou. And one of the perks of being an influencer-type is I get invited to most of these. I find them to be really helpful for getting a good read on what management is focused on. On what they think the strategic imperatives are. On […]
Shopee / Garena / Sea Limited (SE) was one of the biggest investment opportunities of 2020. With the share price rising 4x during the year. And this followed a similar 4x rise the previous year. I flagged this one early based on its outstanding platform strategy. I covered this in Podcast 29 Can Shopee / […]
It’s hard to write and speak about Asia tech without talking about SoftBank and its billionaire Chairman Masayoshi Son. He has been a major player in digital Asia (including China) for 4 decades. And his Vision Fund and its companies (WeWork, Uber, Didi, Oyo, etc.) are a staple of tech news. But I have long […]
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 […]
Singapore-based Sea Limited, which runs Garena, Shopee and AirPay, is one of the biggest tech investment stories of 2020. In the first quarter of 2020, the company was trading in the $40 price range. It is now around $180, with a market capitalization approaching $100B. It has been a rocketship for investors this year. But […]
The market capitalization Square has exceed $100B, which makes it about 1/3 of what Ant Financial / Group was expected to list at (prior to delay). Both companies are using platform business models to invade and expand the payment and financial services space. Fortunately, Ant is further along this trajectory and offers some interesting insights […]
Ruhnn Holding is a Chinese company that not many people follow. Based in Hangzhou, tied with Alibaba and vaguely described as a talent agency and/or social commerce company, it’s a strange animal. And it is currently being taken private and off the US exchanges (maybe). But the company is fascinating and has some really important […]