The Tech Strategy Podcast

This week’s podcast is about the two leading and well-run ecommerce companies in Brazil: Magazine Luiza / Magalu and Mercado Libre. Both companies have compelling but different business models. It is an interesting strategy question.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 Asia Tech Tour.--——Related articles:What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Marketplace platformsOnline-Merge-Offline (OMO) / New RetailFrom the Company Library, companies for this article are:Mercado LibreMagazine Luiza / Magalu———-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, 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 the arrival of ChatGPT, which is stunning people everywhere with its content generation.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 Asia Tech Tour.Here is the link to ChatGPTHere is the past article on Conversation AI at JD:3 Lessons in Conversational AI from JD’s Head of the Deep Learning (1 of 2)--——What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:AI as Cheap and Fast PredictionAI: NLPFrom the Company Library, companies for this article are:OpenAI———-Support the show

This week’s podcast is about Elon Musk's take-over and turn-around of Twitter. Lots of cool lessons in what he has done in the first 3 weeks.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 Asia Tech Tour.——What is Elon Musk’s Plan to 10x Twitter? (2 of 2) (Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Audience-Builder Platform with Connected UsersDigital Operating BasicsSocial mediaFrom 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, 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 Production and Consumption Ecosystems as digital business models. This thinking is mostly by Professor Mohan Subramaniam, who wrote the book The Future of Competitive Strategy: Unleashing the Power of Data and Digital Ecosystems.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.My 9 digital business models are:Linear business models (i.e., pipelines)Production EcosystemsConsumption EcosystemsCompany EcosystemsPlatformsPipeline plus Platform Business ModelProtocol networks (i.e., blockchains) as stand-alone businessesPlatform-protocol hybridsProtocol ecosystems (i.e., building blocks)---—-Related articles:9 Digital Business Models: An Intro to Consumption Ecosystems (2 of 2) (Tech Strategy – Daily Article)The Big Strategy Concepts for Web 3 (1 of 3) (Tech Strategy – Daily Article)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:Production and Consumption EcosystemsDOB4: Connectedness Interoperability and Collaboration Based Business ModelsPlatform Types: Coordination, Collaboration and StandardizationFrom the Company Library, companies for this article are:Haier———-I write, speak and consult about digital strategy and transformation.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, 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 Grab's growth initiatives, which are critical for getting to operating profits. They also provide a case for talking about core vs. adjacency growth.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Grab's compelling growth initiatives include:New Services for ConsumersGrabUnlimitedCross-SellingAdvertisingFinancial ServicesMost of this is a summary of work by Chris Zook at Bain’s strategy practice. I am citing the books:Profit from the CoreBeyond the CoreMost 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.My list for strong cores are growth / market, competitive advantage and attractive unit economics.Adapting the core can be:New products / servicesNew customers – microsegmentsNew geographiesNew businesses.Six growth adjacencies:New customer segments:New geographiesNew channelsNew productsNew BusinessesNew value chain stepsHow 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 poolsFactor 3: The ability to capture economic leadership in that market.Digital adjacencies are moderate, relentless expansions versus big trees.——-Related articles:Grab’s Big Strategy and Cash Flow Question (1 of 4) (Tech Strategy – Daily Article)Lessons from Grab in Geographic Density and Other Tech Enabled Cost Efficiencies (3 of 4)(Tech Strategy – Daily Article)From the Concept Library, concepts for this article are:Growth: Core vs. AdjacencyGrowth: Explore vs. ExploitFrom the Company Library, companies for this article are:Grab———-I write, speak and consult about digital strategy and transformation.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, 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. InvesSupport the show

This week’s podcast is about economies of scale in purchasing power. I go through Walmart and Costco as traditional examples. And point to JD, Apple, and Pinduoduo as digital examples.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here are types of economies of scale.CA11: Fixed Operating and Capital CostsCA12: Purchasing Economies and Bargaining Power with SuppliersLarger companies can demand cheaper prices and/or better terms from suppliers than their smaller competitors. This is about bargaining power for important and/or sizeable inputsCA13: Geographic and Distribution DensityCA14: Geometry EffectCA15: Learning ScaleCases of purchasing economiesNewsfeed of offers plus C2M results in purchasing economies. Pinduoduo.Privileged technology access by ApplePurchasing economies. This was JD's biggest lever.Platform business models power over suppliers.——-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:Competitive Advantage: Purchasing Economies and Bargaining Power with SuppliersFrom the Company Library, companies for this article are:JDPinduoduoWalmartCostco----------I write, speak and consult about digital strategy and transformation.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 cloud business models. It's a complicated and evolving subject. But I am trying to identify good cloud business models that aren't obvious (like AWS, Azure and Google Cloud). Alibaba Cloud and Snowflake are examples.You can listen to this podcast here, which has the slides and graphics mentioned. Also available at iTunes and Google Podcasts.Here are four sub-types of Coordination Platforms.Communication. Zoom, Slack, etc.Data Intelligence. Snowflake and Confluent.Team Projects. Manual and complicated projects like architecture, media creation, software development.Operational Automation.Here are cloud business models I like:Innovation platformsCoordination platforms (especially when combined with innovation platforms).Vertical solutions———-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:Platforms: CoordinationPlatforms: InnovationCloud servicesFrom the Company Library, companies for this article are:Alibaba CloudSnowflake——–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 Magazine Luiza / Magalu and how they ended up as the pioneers of online-merge-offline (OMO) in Brazil retail. It’s a fascinating business model.You can listen to this podcast here or at iTunes and Google Podcasts.Here are my three strategy questions about Magalu:Big Question #1: Will Magalu Become an "Ultimate B2C Marketplace"? Big Question #2: Will Magalu go full OMO? Will they be more aggressive in retail formats?Big Question #3: Will Magalu go full "infrastructure of commerce"?----------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:OMO / New RetailInfrastructure of CommerceBrazilFrom the Company Library, companies for this article are:Magazine Luiza / Magalu--------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 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 businessesGeographic densityFrom the Company Library, companies for this article are:Ze DeliveryAb InBeviFood——-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 CoreDigital Operating Basics 3: Personalization and Customer ImprovementsFrom 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