This week’s podcast is about the recent wave of Chinese tech companies that is shocking Western businesses and politicians.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to our Tech Tours.

The mega-trends that matter here are:

• Rising Chinese consumers
• Manufacturing scale
• Brainpower behemoth
• Money

Here is DeepSeek. You can try it for free here:

• chat.deepseek.com

And you can try Alibaba's Qwen here.

• https://chat.qwenlm.ai/

You can try Kling AI here.

• https://klingai.com/

———-

Related articles:

• BYD Is Going for Global EV Leadership (1 of 2) (Tech Strategy – Daily Article)
• A Strategy Breakdown of Arm Holdings (1 of 3) (Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• EV AV Auto
• Robotics
• GenAI

From the Company Library, companies for this article are:

• BYD
• Unitree
• Kuaishou / Kling AI
• Huawei
• Baidu AI Cloud
• Alibaba Cloud
• MiniMax / Hailuo AI
• DeepSeek

------------

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Support the show

This week’s podcast is about Alibaba.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to our Tech Tours.

Here are the 4 engines:

1. Re-Igniting Growth in Their Now Re-Organized Ecommerce Business
2. Accelerating the Build Out of their Global Smart Logistics Network – Starting with Cross-Border Express Delivery
3. Big Investments in Alibaba Cloud. With Price Cuts to Push Adoption.
4. Pioneering New and Game Changing GenAI Services

---—

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Support the show

This week’s podcast is about personalization and never-ending customer improvements. This is a key operating activity. And sometimes it is a digital marathon that can create an operating advantage.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to the Tech Tour.

Here are the 4 steps to start personalizing.

• Step 1 is DOB3 (Digital Core) and DOB 6 (people, culture, teams). Do organizational change.
• Step 2 is to identify 3-4 Use Cases:
  • These will impact different functions differently.
• Step 3 is to have an ROI within 6 months.
• Step 4 is to get the process to 5-7 days.

Here are the 6 types of customers (from BCG).

1. Brand advocates
2. Multicategory
3. Single-category regulars
4. Deal seekers
5. Disengaged
6. Lapsed

Here are the 4 stages of extreme personalization and customer improvements.

Stage 1 - Personalization Marathon

Stage 2 - Repeat and Retain Machine.

• Also move beyond just sales transactions. Do experience management.

Stage 3 - Surround Customers with Value. Add complementary services. Bundles. Consumption ecosystems.

• Including AI services. This is where the Rate of Learning Marathon really matters. Watch for machine learning operating flywheels.

Stage 4 - Build a Moat

————–

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Support the show

This week’s podcast is about AB InBev's rapidly rising beverage delivery service Ze Delivery. I visited the facilities and spoke with CEO Rudolfo Chung. It's a fascinating business model.

You can listen to this podcast here or at iTunes and Google Podcasts.

——–

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Linked businesses
• Geographic density

From the Company Library, companies for this article are:

• Ze Delivery
• Ab InBev
• iFood

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

Note: 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.

Support the show

This week’s podcast is about important digital changes happening in ecommerce and retail, and that are mostly coming out of China / Asia.

You can listen to this podcast here or at iTunes and Google Podcasts.

—----

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Digital Operating Basics 2: Digital Core
• Digital Operating Basics 3: Personalization and Customer Improvements

From the Company Library, companies for this article are:

• n/a

——--

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about Steam and Garena, which are good examples of specialty gaming businesses.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here are my criteria for specialty ecommerce businesses.

1. Is the company sufficiently differentiated in the user experience?
2. Can the company compete and/or differentiate in logistics or infrastructure without ongoing spending?
3. Does the company have a strong competitive advantage in a circumscribed market?
4. Is there a clear path to significant operational cash flow?
5. Has the company avoided markets and situations that are attractive or strategic for the major ecommerce companies?

---—-

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Marketplace Platforms
• Innovation and Audience Builder Platforms
• Specialty Gaming Businesses
• Gaming and Game Engines

From the Company Library, companies for this article are:

• Garena
• Steam / Valve

---——

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

Note: 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.

Support the show

This week’s podcast is about digital content businesses, which are entirely digital economics. They can have great economics but absolutely need a moat.

You can listen to this podcast here or at iTunes and Google Podcasts.

Three digital content strategies I do like are:

• Network effects with long-tail of UGC. Such as YouTube and TikTok.
• Creates durable IP. Such as Disney.
• Service and community businesses that uses content.

——-

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• Why Netflix and Amazon Prime Don’t Have Long-Term Power. (2 of 2) (US-Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Economics of Digital / Information
• Soft Advantages: Bundling and Cross-Selling
• Digital Operating Basics

From the Company Library, companies for this article are:

• Netflix
• Amazon Prime Video
• Singapore Press Holding

———-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about economies of scale - and why it is still the standard strategy. Especially in specialized areas and niche markets.

You can listen to this podcast here or at iTunes and Google Podcasts.

-----

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about the human capital part of the digital operating basics. Specifically, DOB5: Leadership and management and DOB6: People, Culture and Teams. Middle Eastern retailer is a good example of a company that has been focusing on this area.

You can listen to this podcast here or at iTunes and Google Podcasts.
 
—––

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Operating Performance = Smarter, Faster, Better
• DOB5: Leadership and Management
• DOB6: People, Culture and Teams

From the Company Library, companies for this article are:

• Majid Al Futtaim

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

Note: 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.

Support the show

This week’s podcast is about web3 strategy and business models. It's a big confusing and still evolving space. But I think there are 5 really important concepts to understand (in terms of strategy).

You can listen to this podcast here or at iTunes and Google Podcasts.

—––

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Protocol Networks (Blockchain) with Property Rights
• Composability
• Value Creation vs. Value Distribution
• Points of Control
• Token economics

From the Company Library, companies for this article are:

• Ethereum
• Bitcoin

——-

Support the show

This week’s podcast is about Walgreens and Ping An Good Doctor. Both are using digital tools to create entirely new business models in healthcare. And both look like they have real strengths, if successful. I also mention CVS health.

You can listen to this podcast here or at iTunes and Google Podcasts.
 
—––

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Economies of Scale
• 6 Digital Superpowers
• AI as a Capability
• Learning Platforms

From the Company Library, companies for this article are:

• Walgreens
• Ping An Good Doctor

-------

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about rate of learning as a concept. That is the digital version of what was originally called the learning curve and the experience effect. Rate of learning has gone from an important idea in production-intensive products to a digital requirement. But the key question is when does rate of learning become a competitive advantage? This podcast is my answer.

You can listen to this podcast here or at iTunes and Google Podcasts.

—–--

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Learning Curve and Experience Effect
• SMILE Marathon: Rate of Learning and Adaptation
• CA7: Rate of Learning and Process Cost Advantages

From the Company Library, companies for this article are:

• Amazon
• Tencent

-------

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about Xiaomi and ongoing strategy changes and moves. This is a good case for my 6 levels of digital competition. It takes apart the situation fairly effectively. And Apple and Amazon provide good counter-examples.

You can listen to this podcast here or at iTunes and Google Podcasts.

—–

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• 6 Levels of Digital Competition
• SMILE Marathon

From the Company Library, companies for this article are:

• Xiaomi
• Amazon
• Apple

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about how non-rational behavior plays out products / services, consumer behavior and network effects. Digital tools are making tribal and belief network effects more sophisticated, surgical and powerful.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to the Tech Tour.

Point 1: Digital is super-charging consumer products, experiences and behaviors. Especially when it is about psychology and emotion. And not just utility.

Point 2: The most powerful version of digitally supercharged consumer products rise to the level of share of the consumer mind. A competitive advantage.

Point 3: Products / services are increasingly being boosted by a degree of connectivity. This is usually described as community. Or interactivity.

Point 4: Tribal and belief behavior can have a big impact on consumer experience. Sometimes rising to the level of SCM.

Point 5: Tribal (shared identity) and shared belief behavior can increase retention. Sometimes rising to the level of Switching Costs.

Point 6: Tribal (shared identity) and shared belief behavior can Sometimes rising to the level of Network Effects.

Final Point: Digital tools are making tribal and belief effects more sophisticated, surgical and powerful. That is why it is showing up in everything.

--------------

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Support the show

This week’s podcast is about Alipay+, which is Ant's new international payment initiative. But it is also about the return of Ant Group after 2 years in restructuring. I call that Ant 2.0.

You can listen to this podcast here or at iTunes and Google Podcasts.

——–

Related articles:

• Ant Financial Is 3 Platform Business Models Combined. (Jeff’s Asia Tech Class – Daily Lesson / Update)
• Ant Financial’s Big Money is in Asset-Light Credit Tech (Jeff’s Asia Tech Class – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Digital Economics: Bundling
• Payment Platforms

From the Company Library, companies for this article are:

• Ant Financial / Alipay+
• Stone
• Square

 
---------

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

Note: 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.

Support the show

This week’s podcast is about GE and their big digital transformation initiative from 2011-2018. However, I am not a GE expert by any stretch. I am just presenting a very simplified version of their digital initiatives (from case studies) for a discussion about digital transformation.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here's my playbook for the digital transformation of an incumbent.

•  70% Digital Operating Basics
• 25% Moats
• 5% Tactics

——–

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Digital Transformation
• Industrial Internet / IIoT
• Digital Operating Basics

From the Company Library, companies for this article are:

• GE

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about Elon Musk's attempted purchase of Twitter. But it is really about how the control and curation of information flows how become a key issue in the digital age. The lack of effective curation at scale has become a major problem in society. Elon Musk may be the person to finally fix this.

You can listen to this podcast here or at iTunes and Google Podcasts.

——--

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• GoTo Is Going for an “Ultimate B2C Marketplace” in Indonesia. But Alibaba Couldn’t Do It in China. (1 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Information Flows
• Interaction Failure and Curation at Scale

From the Company Library, companies for this article are:

• Twitter

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about digital disruption. It's a big and difficult topic for management teams. And it usually leads to discussion about innovation. Here are 2-3 frameworks for how to think about it.

Correction: I said Daily Mail in the podcast. I meant Daily Journal.

You can listen to this podcast here or at iTunes and Google Podcasts.

Andreesen-Horowitz's 4 Stages of Disruption

1. Disruption of incumbent
2. Rapid and linear evolution
3. Appealing convergence
4. Complete reimagination

My standard disruption questions:

• Impact: Is the impact on my 6 levels predictable?
• Probability: How how is it for management to hard to pull off this strategy?

---—

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• GoTo Is Going for an “Ultimate B2C Marketplace” in Indonesia. But Alibaba Couldn’t Do It in China. (1 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Sustaining vs. Disruptive Innovation / Clayton Christensen
• Andreesen-Horowitz's 4 stages of disruption

From the Company Library, companies for this article are:

• Barnes and Noble
• Daily Journal

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also host US-Asia Tech Strategy, a podcast and subscription newsletter on the strategies of the best digital companies in the US, China and Asia.

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.

Support the show

This week’s podcast is about Amazon's competitive advantages. We can see clearly growing moats in ecommerce. But increasing competition is revealing the lack of defenses in video streaming. Netflix has the same problem.

You can listen to this podcast here or at iTunes and Google Podcasts.

The mentioned graphics are here. 

——

Related articles:

• Why I Really Like Amazon’s Strategy, Despite the Crap Consumer Experience (US-Asia Tech Strategy – Daily Article)
• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• GoTo Is Going for an “Ultimate B2C Marketplace” in Indonesia. But Alibaba Couldn’t Do It in China. (1 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Economies of Scale: Purchasing Economies
• Economies of Scale: Fixed Costs
• Digital Operating Basics

From the Company Library, companies for this article are:

• Amazon
• Netflix

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is about Amazon vs. Alibaba and Pinduoduo. There are some important strategy differences between the ecommerce leaders in the US and China.

You can listen to this podcast here or at iTunes and Google Podcasts.

——

Related articles:

• 3 Big Questions for GoTo (Gojek + Tokopedia) Going Forward (2 of 2)(Winning Tech Strategy – Daily Article)
• GoTo Is Going for an “Ultimate B2C Marketplace” in Indonesia. But Alibaba Couldn’t Do It in China. (1 of 2)(Winning Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Economies of Scale: Purchasing Economies
• Economies of Scale: Fixed Costs
• Linked Businesses

From the Company Library, companies for this article are:

• Amazon
• Alibaba
• Pinduoduo

——-

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is newly public GoTo, which is an interesting business model combining a platform for products (Tokopedia) with one for services (Gojek).

You can listen to this podcast here or at iTunes and Google Podcasts.
 
—----

Related articles:

• Will Southeast Asian Grab Become Meituan or Didi? (Asia Tech Strategy – Podcast 121)
• Grab’s Big Strategy and Cash Flow Question (1 of 3) (Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Complementary Platforms
• Digital-Physical Hybrids
• Barriers to Entry

From the Company Library, companies for this article are:

• GoTo / Gojek / Tokopedia

-----

I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is about combining two previously covered topics: growth and the digital operating basics. This can be surprisingly powerful.

You can listen to this podcast here or at iTunes and Google Podcasts.

Most of the growth thinking is a summary of work by Chris Zook at Bain’s strategy practice. I am citing the books:

• Profit from the Core
• Beyond the Core

He argues most all sustainable growth is based on 1-2 strong cores that continually adapt.

• A profitable core is centered on the strongest position in terms of loyal customers, competitive advantage, unique skills, and ability to earn profits.
• Adapting the core can be:
  • New products / services
  • New customers – microsegments
  • New geographies
  • New businesses.

Then add growth adjacencies. To assess an adjacency move:

• Factor 1: Adjacency is tightly tied to a strong core.
• Factor 2: An attractive adjacency market in terms of profit pools
• Factor 3: The ability to capture economic leadership in that market. Competitive advantage as an attacker and then an incumbent.

 Growth + DOB can sometimes get you the dream scenario:

1. Grow the revenue line.
2. Increase gross profits. An expanding margin with size.
3. Increase operating leverage with increasing scale. This is more about going for scale.
4. Invest in R&D, tech and infrastructure. This will result in a better user experience and improve operating efficiency.
   1. Drive efficiencies and increase monetization.
   2. Improve the user experience.
   3. Expand the products and services in high growth areas.
5. Do targeted M&A. To increase innovation and protect against disruption.

 -----

Related articles:

• Core vs. Adjacency Growth in Digital Businesses (Asia Tech Strategy – Podcast 104)
• Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Asia Tech Strategy – Podcast 98)

From the Concept Library, concepts for this article are:

• Growth: Core vs. Adjacency
• Digital Operating Basics
• DOB7: Sustainable Cash Engine that Scales

From the Company Library, companies for this article are:

• n/a

-------

Support the show

This week’s podcast is about Southeast Asian tech giant Grab, its impressive execution and its chronic unprofitability.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

—–-

Related articles:

• Growth, ROIC / RONIC and Growth + Sales in Digital Valuation (Asia Tech Strategy – Podcast 102)
• An Intro to Growth and “Birds in the Bush” in Digital Valuation (Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Complementary Platforms
• Marketplace Platform for Services
• SE Asia
• Engagement Products vs. Margin Products
• Economies of Scale: Geographic Density

From the Company Library, companies for this article are:

• Grab Holdings

--------

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is about how web 3.0 is creating three types of marketplaces:

• Digital platforms (web 2.0), such as a Taobao
• Platform-protocol hybrids, such as Coinbase
• Protocol networks, such as Uniswap

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

 —–-

Related articles:

• How to Think About Web 3.0 Business Models (1 of 2) (Asia Tech Strategy – Daily Article)
• Platform-Protocol Hybrids and Why DeFi is the Center of Web 3.0 (2 of 2) (Asia Tech Strategy – Daily Article)

From the Concept Library, concepts for this article are:

• Marketplace Platforms
• Protocol Networks
• Platform-Protocol Hybrids (PPH)

From the Company Library, companies for this article are:

• Coinbase
• Uniswap

---

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is about network effects. And my 6 questions to look for.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to the Tech Tour.

Here are the 4 network effects questions:

1. What is the asymptotic scale?
2. What is the minimum viable scale?
3. What is the shape of the curve?
4. What is the scale differential with rivals?

Here the 4 network effect effects:

1. Network effects can cause rapid increases in the real or perceived value and/or utility to customers. A product or service that increases in value TO THE USER is great. And this is usually what we are talking about with network effects.
   1. This is usually thought of as consumers. Or business customers. But it can also be for other user groups, like content creators and developers.
   2. This doesn’t necessarily mean growth. You can have a great and improving service in a small or flat market.
2. Network effects can increase economic value. This is not the same thing as customer value (real or perceived). If a platform business model has attractive unit economics and growth potential, then you can see increasing economic value and shareholder returns with network effects. But not always. You can have a fantastic service with increasing customer but not economic value (by network effects)
3. Network effects can create a competitive advantage. This is demand side economies of scale as a moat. This is what collapses the market to a monopoly or oligopoly. However, this doesn’t necessarily mean the creation of economic value. You can dominate an unattractive business. And it doesn’t necessarily mean growth. You can dominate a stagnant business.
4. Network effects can create a barrier to entry. In digital, this is mostly by indirect network effects, which have a chicken and egg problem. That is hard for new entrants to overcome with an incumbent present. There is less of a barrier to entry with direct network effects. We also see barriers to entry in physical networks which require lots of tangible assets. Replicating a railroad is almost impossible in a developed country.

--------

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Photo is AI generated

Support the show

This week’s podcast is about customer capture as a competitive advantage. And how digital is really changing this type of moat.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

---—–

From the Concept Library, concepts for this article are:

• CA1: Share of Consumer Mind, Share of User Mind and User Capture
• Competitive Advantages

From the Company Library, companies for this article are:

• n/a

---------

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also run Asia Tech Strategy, 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.

Support the show

This week’s podcast is about Nike in China. But it really about how you win as a participant in large platform businesses in ecommerce and social media.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

---—–

From the Concept Library, concepts for this article are:

• Digital Complments
• SMILE Marathon: Ecosystem Orchestration or Participation
• DOB4

From the Company Library, companies for this article are:

• Nike

-------------

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

I also run Asia Tech Strategy, 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.

Support the show

This week’s podcast is about web 3.0. I view most successful web 3.0 companies like Coinbase as platform-protocol hybrids.

You can listen to this podcast here or at iTunes and Google Podcasts.

------

From the Concept Library, concepts for this article are:

• Protocol Networks
• Platform-Protocol Hybrids / Web 3.0

From the Company Library, companies for this article are:

• Coinbase

-------

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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.

Support the show

This week’s podcast is about Nubank, Brazil's rapidly rising digital bank.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

Here are my 5 predictions for Nubank 2.0

#1: Nubank Could Offer Asset-Lite Credit Services

#2: Nubank Could Create a Complementary Marketplace Platform for Investment and Insurance Products

#3: Nubank Will Go Cross-Border and Offer a Growing Suite of Financial Services Products

#4: Nubank Could Launch Mini-Programs within the Payments App

#5: Nubank Could Externalize Financial Cloud Services

---——

Related articles:

• Brazilian Nubank is Ant Financial Circa 2016 (1 of 2) (Asia Tech Strategy – Daily Article)
• Ant Financial’s Big Money is in Asset-Light Credit Tech (Jeff’s Asia Tech Class – Daily Lesson / Update)
• How Ant Financial / Ant Group is Revolutionizing Finance (1 of 3) (Jeff’s Asia Tech Class – Podcast 47)

From the Concept Library, concepts for this article are:

• Payment Platforms
• Complementary Platforms

From the Company Library, companies for this article are:

• Nubank

——–——

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

Note: 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.

Support the show

This week’s podcast is about Barriers to Entry, which is one of my 6 levels of competition.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

Most of my favorite businesses have key operating assets that can’t be easily built, bought, or transferred. This turns out to be an interesting list. Think about:

• Reputation, loyalty, and love.
• Personal customer relationships.
• Intellectual property, creative activities, and rare technical abilities.
• Certain technologies, scientific capabilities, and trade secrets.
• Certain physical assets.
• Physical and digital networks.

--——

Related articles:

• SenseTime and an Introduction to AI Software Economics (1 of 3) (Asia Tech Strategy – Daily Article)
• 3 Lessons in China AI/ML from Artefact (Data Consultants and Digital Marketers)
• Adobe Inc. and the Power of Old School Software Economics (Asia Tech Strategy – Podcast 81)

From the Concept Library, concepts for this article are:

• 6 Levels of Competition
• Barriers to Entry
• Cost Timing and Difficulty of Entry?

From the Company Library, companies for this article are:

• n/a

-———

I write and speak about digital competition and China / Asia’s leading tech companies.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

Note: 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.

Support the show

This week’s podcast is about SenseTime, which is a leader in computer vision in China / Asia. It's a fascinating company for looking at the evolving business models of AI software. The two big questions are:

• What are the unit economics of large AI companies?
• What types of scale advantages and network effects do large AI companies?

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

I break the network effects question into three sub-questions:

• Do existing AI models get better the more they are used?
  • How much? Does it flatline? Does it keep increasing?
• Do existing AI models make each other smarter and better?
• Do existing AI models and the data they collect make additional AI models smarter? Do they make them faster and cheaper to train?

My working for conclusions are:

• This is mostly an integrated software bundle going for global scale.
• It's a learning platform with a new type of network effect.
• It is building an innovation platform, with another network effect.

——---

Related articles:

• SenseTime and an Introduction to AI Software Economics (1 of 3) (Asia Tech Strategy – Daily Article)
• 3 Lessons in China AI/ML from Artefact (Data Consultants and Digital Marketers)
• Adobe Inc. and the Power of Old School Software Economics (Asia Tech Strategy – Podcast 81)

From the Concept Library, concepts for this article are:

• Learning Platforms
• Integrated Bundles
• Artificial Intelligence
• Computer Vision

From the Company Library, companies for this article are:

• SenseTime

-------

I write and speak about digital competition and China / Asia’s leading 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.

Support the show

This week’s podcast is about my discussion with Abel Deng, the CEO of Huawei Thailand. And about how the next generation of digital infrastructure is developing in SE Asia.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

-———

Related articles:

• Huawei Is Going to Beat Trump with Human Resources, Not Technology (Pt 1 of 3)
• Huawei’s Employee Stock Ownership Plan (ESOP) is “Meritocracy Plus Partnership” at Scale in China Tech. (Pt 2 of 3)

From the Concept Library, concepts for this article are:

• Role of the State
• Economies of Scale
• SMILE Marathon: Sustained Innovation

From the Company Library, companies for this article are:

• Huawei

———-

Support the show

This week’s podcast is about Snowflake and Confluent.  But the main topic is how to think about coordination, collaboration and standardization (CCS) platform business models. And the 4 types of these platforms.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

I’ve now started breaking this into 4 sub-types of CCS platforms. They are:

1. Communication. Zoom, Slack, etc.
2. Data Intelligence. Snowflake and Confluent.
3. Team Projects. Manual and complicated projects like architecture, media creation, software development.
4. Operational Automation.

---——

Related articles:

• Part 2: Snowflake is Building 3 Complementary Platforms with 4 Network Effects (Pt 2 of 3) (Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Hierarchies of Control
• Coordination, Collaboration and Standardization (CCS) Platforms
• Enterprise B2B

From the Company Library, companies for this article are:

• Snowflake
• Confluent

----------

I write and speak about digital competition and China / Asia’s leading tech companies.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about the external view and the importance of base rates. Berkshire-invested Kroger supermarkets is a good example of a company that can really be viewed externally.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book:

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

Common metrics for base rates:

• Sales growth
• Gross profitability (gross profits / assets)
• Operating leverage. Change in operating profits relative to change in sales.
• Operating profit margin
• Earnings growth
• CFROI

Here is the McKinsey book Beyond the Hockey Stick.

———

Related articles:

• What Ant Financial Tells Us About the Future of Square. Plus, Why The External View Is So Hard in Digital. (Jeff’s Asia Tech Class – Podcast 61)

From the Concept Library, concepts for this article are:

• External vs. Internal View
• Regression to the Mean (average / base rates, rate of regression)

From the Company Library, companies for this article are:

• Kroger

---------—-

I write and speak about digital competition and China / Asia’s leading tech companies.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about ANE Logistics, which is a compelling business model for digitizing and consolidating less than truckload logistics in China.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

My questions for ANE Logistics:

• Does a franchised logistics network with digital connectivity lower the barrier to entry?
• What happens when the volume is greater a network with the same number of nodes and linkages as another?
• What happens when the geographic density is increased? More nodes and / or more linkages.

---------

Related articles:

• Podcast 26: Is Baidu the New AT&T? The Basics of Physical vs. Virtual Networks.
• Will JD Logistics Become a New Type of Ecosystem? (Asia Tech Strategy – Podcast 71)

From the Concept Library, concepts for this article are:

• Networks vs. Platforms vs. Network Effects
• Franchised Networks
• Logistics

From the Company Library, companies for this article are:

• ANE Logistics

-———-

I write and speak about digital competition and China / Asia’s leading tech companies.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about TikTok vs. Netflix. And how consumer behavior combines with digital tools in the video space.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to the Tech Tour.

Here is the interview with Jonathan Haidt. And his book the Righteous Mind: Why Good People Are Divided by Politics and Religion

Here are the 5 lessons:

Lesson 1: High Frequency Video MTV Was More Powerful Than Long-Form TV Stories

Lesson 2: Digital-First Netflix Crushed Cable TV with Selection, Price, and Convenience

Lesson 3: Interactive YouTube and Streaming Was More Powerful than Passive Videos

Lesson 4: TikTok Trumped Netflix Using “Endless Dopamine”

Lesson 5: Machine Learning-Centric Video TikTok Was Also Superior for Consumers and Creators

Here are the 5 mentioned content types

• Education
• Story telling
• Mindless entertainment. Including things like comedy.
• News / Politics
• Sports

—---

I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Photo is AI generated

Support the show

This week’s podcast is Brazilian Stone Company (STNE), the Berkshire Hathaway-invested payment platform that has fallen in share price by +80%.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

——-

Related articles:

• Brazilian Stone Co, Chinese Ant, and American Square Are All Building Complementary Payment Platforms (1 of 2) (Asia Tech Strategy – Daily Lesson / Update)
• What Ant Financial Tells Us About Square’s Future. (Jeff’s Asia Tech Class – Daily Update)
• Ant Financial Is 3 Platform Business Models Combined. (Jeff’s Asia Tech Class – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Payment Platforms
• Digital-Physical Hybrid

From the Company Library, companies for this article are:

• Stone Company

------

Support the show

This week’s podcast is about how to assess specialty companies within enterprise software and services. And about Tuya, which an interesting example of a specialty B2B play.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

Here are my 5 questions (thus far) for assessing the viability of a specialty ecommerce company.

1. Is the company sufficiently differentiated in the user experience? Or did they just get there first?
2. Can the company compete and/or differentiate in logistics or infrastructure without ongoing spending?
3. Does the company have a strong competitive advantage in a circumscribed market?
4. Is there a clear path to significant operational cash flow?
5. Has the company avoided markets and situations that are attractive or strategic for the major ecommerce companies?

Here are my 5 questions (thus far) for assessing the viability of a specialty enterprise company.

1. Is the company sufficiently differentiated in the user experience? Or did they just get there first?
2. Can the company compete and/or differentiate in sales / marketing or R&D without ongoing spending?
3. Does the company have a strong competitive advantage in a circumscribed market?
4. Is there a clear path to significant operational cash flow?
5. Has the company avoided markets and situations that are attractive or strategic for the major enterprise companies? 
   1. Pay attention to hierarchies of control.

—----

Related articles:

• Etsy and How to Predict the Winners in Specialty Ecommerce (Asia Tech Strategy – Daily Lesson / Update)
• An Introduction to Tuya and Its Play for an IoT Ecosystem (Pt 1 of 2)(Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Hierarchy of Control
• Enterprise Specialty

From the Company Library, companies for this article are:

• Tuya

----------—-

I write and speak about digital competition and China / Asia’s leading 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.

Support the show

This week’s podcast is about Alibaba and Singles' Day. Just my thoughts on what really matters.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

My list of 7 things people are getting wrong about Singles' Day:

1. Business model is about building demand-side scale. This is also about economies of scale as a relative advantage.
2. Operating model is about user-facing innovation that adds value.
3. Consumer facing innovation is likely about live-streaming, metaverse and NFTs.
4. Merchant-facing innovation is likely about R&D and financing.
5. Physical assets have traditionally been about supply-side scale and building a barrier to entry.
6. Alibaba is also separating supply side into a new business that is the "new infrastructure of commerce".
7. Singles Day is both a moonshot program and a yearly stress test for the company.

Here are the Digital Operating Basics.

Here is the Alibaba slides for adding value to merchants. 

—----

Related articles:

• 7 Questions for Alibaba on Singles’ Day (pt 1 of 2)
• Behind the Scenes with Alibaba on Singles’ Day (Jeff’s Asia Tech Class – Podcast 5)

From the Concept Library, concepts for this article are:

• Digital Operating Basics: DOB2 Never-Ending Personalization and Customer Improvement
• Network Effects - Demand side Economies of Scale
• Ecommerce

From the Company Library, companies for this article are:

• Alibaba

-------

I write and speak about digital competition and China / Asia’s leading tech companies.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is more about Snowflake, the “data ecosystem” company. And how multiple companies are competing to create the standards and architecture for cloud services.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

---—-

Related articles:

• Snowflake is Building 3 Complementary Platforms with 4 Network Effects (Pt 1 of 3) (Asia Tech Strategy – Daily Lesson / Update)
• Kingsoft Cloud and How to Think About Cloud Services in China (Asia Tech Strategy – Daily Lesson / Update)
• What Everyone is Getting Wrong About Snowflake (Asia Tech Strategy – Podcast 105)

From the Concept Library, concepts for this article are:

• Innovation: Dominant Design
• Innovation: Increasing Returns to Tech Adoption
• Cloud Services

From the Company Library, companies for this article are:

• Snowflake
• Tuya

-----------

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about Snowflake, the "data ecosystem" company. It is one of the most compelling digital business models out there. It is one of the few companies that could become the next Google or Microsoft.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my new book (released December 1):

• Moats and Marathons (Part 1): How to Build and Measure Competitive Advantage in Digital Businesses Kindle Edition

A summary of the Digital Operating Basics:

1. Scale and growth and small incremental cost.
2. Personalization. 
3. A digital core for operations. 
4. Ecosystem and connectedness. 
5. People, culture and work design form a social engine that enables innovation and execution personalized for each customer. 
6. Operational cash flow. 

Here is a previous podcast on that.

• Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Asia Tech Strategy – Podcast 98)

---—-

Related articles:

• Snowflake is Building 3 Complementary Platforms with 4 Network Effects (Pt 1 of 3) (Asia Tech Strategy – Daily Lesson / Update)
• Snowflake is Building 3 Complementary Platforms with 4 Network Effects (Pt 2 of 3) (Asia Tech Strategy – Daily Lesson / Update)
• Part 3: Snowflake’s Big Growth and Competition Questions (Pt 3 of 3) (Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Complementary Platforms
• Digital Operating Basics

From the Company Library, companies for this article are:

• Snowflake

---------

I write and speak about digital China and Asia’s latest tech trends.

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.

Support the show

This week’s podcast is about core vs. adjacency growth. This is a good framework for thinking about growth in digital businesses.

You can listen to this podcast here or at iTunes and Google Podcasts.

Most of this is a summary of work by Chris Zook at Bain's strategy practice. I am citing the books:

• Profit from the Core
• Beyond the Core

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.

Six growth adjacencies:

• New customer segments:
  • Micro-segmentation of current segments
  • Unpenetrated segments
  • New segments
• New geographies
  • Global expansion
  • Local expansion
• New channels
  • Internet
  • Distribution
  • Indirect
• New products
  • New to world
  • Complements
  • Support services
  • Next generation
  • Just new products / services
• New Businesses
  • New to world needs
  • New substitutes
  • New models
  • Capability adjacencies
• New value chain steps
  • Forward integration
  • Backwards integration
  • Sell capability to outside

How to assess an adjacency move:

• Factor 1: Adjacency is tightly tied to a strong core.
• Factor 2: An attractive adjacency market in terms of profit pools
• Factor 3: The ability to capture economic leadership in that market. Competitive advantage as an attacker and then an incumbent.

—----

Related articles:

• Growth, ROIC / RONIC and Growth + Sales in Digital Valuation (Asia Tech Strategy – Podcast 102)
• An Intro to Growth and “Birds in the Bush” in Digital Valuation (Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Growth: Core vs. Adjacency
• Digital Operating Basics

——-

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about how digital impacts society, business, news and politics. And how centralized planning might be the best solution in a digital world.

You can listen to this podcast here or at iTunes and Google Podcasts.

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Related articles:

• Valuation Like Warren Buffett in 1 Slide (Asia Tech Strategy – Daily Lesson / Update)
• An Intro to Digital Valuation (Asia Tech Strategy – Daily Lesson / Update)
• Why DCF Sucks for Digital Valuation. (Asia Tech Strategy – Podcast 101)

From the Concept Library, concepts for this article are:

• Coordination and Transaction Costs
• Ecosystems vs. Platforms vs. Networks
• Theory of the Firm

From the Company Library, companies for this article are:

• n/a

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I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about growth and how it relates to value and valuation. ROIC vs. RONIC is an important part of separating past and continuing value.

You can listen to this podcast here or at iTunes and Google Podcasts.
 
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Related articles:

• Valuation Like Warren Buffett in 1 Slide (Asia Tech Strategy – Daily Lesson / Update)
• An Intro to Digital Valuation (Asia Tech Strategy – Daily Lesson / Update)
• Why DCF Sucks for Digital Valuation. (Asia Tech Strategy – Podcast 101)

From the Concept Library, concepts for this article are:

• Valuation
• Growth, ROIC/RONIC and Value
• Growth + Sales

From the Company Library, companies for this article are:

• n/a

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I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about how to apply DCF in valuations of digital companies.

You can listen to this podcast here or at iTunes and Google Podcasts.

For the tennis ball story and DCF details, here are the slides.

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Related articles:

• Valuation Like Warren Buffett in 1 Slide (Asia Tech Strategy – Daily Lesson / Update)
• An Intro to Digital Valuation (Asia Tech Strategy – Daily Lesson / Update)

From the Concept Library, concepts for this article are:

• Valuation: Digital
• Discounted Cash Flow

From the Company Library, companies for this article are:

• n/a

———-

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about Hillhouse Capital and how they are buying and digitizing Chinese and increasingly Asian companies. I talk about their deals with Belle and Gree.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my summary of digital operating basics (Dr. Ram’s book combined with some of my own thinking):

1. Scale and growth at small incremental cost.
2. Continuous personalization and customer-facing innovation.
3. A digital core for operations.
4. Ecosystem and connectedness
5. People, culture and work design create a social engine that enables innovation and execution – increasingly personalized for each customer.
6. Money-making at scale makes the company sustainable. It enables continuous innovation, including big bets where the ability to withstand losses is important.

The picture I use to summarize Value Point is shown here.

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Related articles:

• How I Learned to Love SoftBank and Its Investment Strategy (Jeff’s Asia Tech Class – Daily Update)
• Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Asia Tech Strategy – Podcast 98)
• Meituan vs. Ctrip vs. Alibaba: Who Will Win in China Services? (Jeff’s Asia Tech Class – Podcast 22)

From the Concept Library, concepts for this article are:

• Digital Operating Basics
• Value Point (Ques 7)

From the Company Library, companies for this article are:

• Hillhouse Capital Group
• Belle
• Topsport International Holdings
• Gree Electric

——-

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about Coinbase, which has been coming back in terms of share price and revenue.

You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.

Here is the link to the TechMoat Consulting.

Here is the link to the Tech Tour.

Here are the three lessons:

Lesson 1: Don’t get seduced by stories and cool business models. 

Lesson 2: You live and die with the customer. Bitcoin + Coinbase was a 10x solution to a massive problem.

Lesson 3: You can’t disrupt the government. Or State Owned or State-Directed Enterprises. Unless they approve.

• Coinbase and the Tech Uncertainties of Platform-Protocol Hybrids (3 of 3)(Tech Strategy – Daily Article)
• After the Fall of Crypto, Is Coinbase an Opportunity? (Tech Strategy – Daily Article)

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I write, speak and consult about how to win (and not lose) in digital strategy and transformation.

I am the founder of TechMoat Consulting, a boutique consulting firm that helps retailers, brands, and technology companies exploit digital change to grow faster, innovate better and build digital moats. Get in touch here.

My book series Moats and Marathons is one-of-a-kind framework for building and measuring competitive advantages in digital businesses.

This content (articles, podcasts, website info) is not investment, legal or tax 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. This is not investment advice. Investing is risky. Do your own research.

Support the show

This week’s podcast is my second on Ram Charan’s new book “Rethinking Competition Advantage“. I think it has a lot of great insights about the basics of digital operations.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my summary of digital operating basics (Dr. Ram’s book combined with some of my own thinking):

1. Scale and growth at small incremental cost. 
2. Continuous personalization and customer-facing innovation. 
3. A digital core for operations.
4. Ecosystem and connectedness.
5. People, culture and work design create a social engine that enables innovation and execution – increasingly personalized for each customer. 
6. Money-making at scale makes the company sustainable. It enables continuous innovation, including big bets where the ability to withstand losses is important.

—–

Related articles:

• Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Asia Tech Strategy – Podcast 98)
• Meituan vs. Ctrip vs. Alibaba: Who Will Win in China Services? (Jeff’s Asia Tech Class – Podcast 22)

From the Concept Library, concepts for this article are:

• Digital Operating Basics

------

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about Ram Charan's new book "Rethinking Competition Advantage". I think it has a lot of great insights about the basics of digital operations. But not much about competitive advantage.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is my interpretation of the book's digital operating basics:

1. A personalized consumer experience is key to continued growth. Continually innovating on the consumer experience enables cross-selling more and more products and services to a broad audience. A "market of one" is the ultimate personalization.
2. Companies need a digital core for operations. Algorithms and data are essential weapons.
3. A company needs an ecosystem. Every major player needs at least 10 partners for sharing data, meeting a range of consumer preferences, growing faster than it otherwise could and continually refreshing with technology and innovation.
4. Companies need powerful moneymaking models. Target a big opportunity and increase cash gross margin by innovation and cost reductions over time. Fund multiple experiments against consumer experience. Add revenue streams on the same digital core.
5. People, culture and work design form a social engine that enables innovation and execution personalized for each customer. Decision-making is designed for innovation and speed.

—–

Related articles:

• Can Foodpanda / Delivery Hero Get to Profitable Scale in On-Demand Food? (Asia Tech Strategy – Daily Lesson / Update)
• Meituan vs. Ctrip vs. Alibaba: Who Will Win in China Services? (Jeff’s Asia Tech Class – Podcast 22)

From the Concept Library, concepts for this article are:

• Digital Operating Basics

From the Company Library, companies for this article are:

• n/a

———-

I write and speak about digital China and Asia’s latest tech trends.

I also run Tech Strategy, 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.

Support the show

This week’s podcast is about assessing specialty ecommerce companies (i.e,. the anteaters) vs. the ecommerce giants (i.e,. the lions). Which will survive? Which will thrive?

You can listen to this podcast here or at iTunes and Google Podcasts.

Here are my 5 questions (thus far) for assessing the viability of a specialty ecommerce company.

1. Is the company sufficiently differentiated in the user experience?
2. Can the company compete and/or differentiate in logistics or infrastructure without ongoing spending?
3. Does the company have a strong competitive advantage in a circumscribed market?
4. Is there a clear path to significant operational cash flow?
5. Has the company avoided markets and situations that are attractive or strategic for the major ecommerce companies?
6. Addendum: Don’t overestimate first mover, virality or growth hacks.

Here's my assessment of various specialty ecommerce companies:

• Thriving:
  • Etsy – huge suite of unique products for mass market by capturing unique merchants.
  • Oriental Trading Company – unique product for niche market by unique logistics.
  • Pinduoduo - engagement driven ecommerce.
• Survive, but questionable:
  • Global-e – cross border logistics
• I'm not optimistic:
  • Dingdong
  • Farfetch
• Situations that may be overestimating first mover, virality or growth hacks.
  • Delivery Hero:
  • Shein

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Related articles:

• Can Foodpanda / Delivery Hero Get to Profitable Scale in On-Demand Food? (Asia Tech Strategy – Daily Lesson / Update)
• Meituan vs. Ctrip vs. Alibaba: Who Will Win in China Services? (Jeff’s Asia Tech Class – Podcast 22)

From the Concept Library, concepts for this article are:

• Specialty Ecommerce
• Interactive and Engagement-Focused Ecommerce

From the Company Library, companies for this article are:

• Etsy
• Oriental Trading Company
• Pinduoduo

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I write and speak about digital China and Asia’s latest tech trends.

I also run Asia Tech Strategy, 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.

Support the show