The Tech Strategy Podcast

This week’s podcast is about Didi's upcoming IPO. They have released their numbers and it shows market dominance but operating losses. This is my explanation for what is happening. And what their strategic plan means.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.How I breakdown:Market size and/or growthCompetitive strength and defensibilityUnit economicsQuestions for network effects:Local vs. regional vs. international network effects?Fast vs. slow network effects?Degree vs. value of connections?Minimum viable scale vs. asymptotic scale? What is congestion / saturation / degradation scale?Linear vs. exponential growth at different scales?—–---Related articles:Ant Financial and the 3 Types of Network Effects (Asia Tech Strategy – Podcast 86)A Day in the Life of a Didi Chuxing Driver (Pt 1 of 3)From the Concept Library, concepts for this article are:Network Effects: IndirectEconomies of Scale: Purchasing Economies5 Forces: Substitutes5 Forces: Threat of New EntrantsFrom the Company Library, companies for this article are:Didi---------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 separating networks (an asset) from platforms (a business model) from network effects (a phenomenon). And the three standard types of network effects.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.I put network effects into 3 types:Direct (One-Sided) Network EffectsIndirect (Two-Sided) Network EffectsStandardization and Interoperability Network EffectsI put networks into 3 types:Physical NetworksProtocol NetworksPeople Networks——–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:3 Networks vs. 5 Platforms vs. 3 Network EffectsNetwork Effects: Direct and IndirectNetwork Effects: Standardization and InteroperabilityFrom the Company Library, companies for this article are:Ant Financial-------------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 "criticality" as a type of switching cost. And specifically about Wabco, one of Warren Buffett's companies that has fairly powerful B2B criticality.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.——–Related articles:Waze, Google Maps and How Warren Buffett Made 50% on a Map Company (Jeff’s Asia Tech Class – Daily Update)Warren Buffett On Becoming a Better Person (Daily Lesson – Jeff’s Asia Tech Class)From the Concept Library, concepts for this article are:Switching CostsB2B Customer View: Necessary vs. Critical vs. StrategicFrom the Company Library, companies for this article are:WabcoWarren Buffett / Berkshire Hathaway——–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 how traditionally great logistics businesses like DHL and JD Logistics are doing major digital upgrades. It's a big unknown but it all looks pretty attractive.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.—-----Related articles:JD Logistics and the Dream of Smart, Automated Logistics at Scale (1 of 2) (Asia Tech Strategy – Daily Update)Will JD Logistics Become a New Type of Ecosystem? (Asia Tech Strategy – Podcast 71)From the Concept Library, concepts for this article are:Standardization and Interconnection Network EffectEconomies of Scale: Geographic DensityFrom the Company Library, companies for this article are:DHLJD Logistics--------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 the US-China DTC retailer Shein, which has rocketed upwards in the past months. Analysts are starting to pay close attention - but consumers have been noticing this company for a while.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.The mentioned article by Packy McCormick and Matthew Brennan is Shein: The TikTok of Ecommerce. —–—-Related articles:JD and Competitive Advantages vs. Entry Barriers in China Retail (Daily Lesson – Jeff’s Asia Tech Class)JD and the Power of Production Cost Advantages in Retail (Daily Lesson – Jeff’s Asia Tech Class)Don’t Go Gaga Over Shein’s “Ultra-Fast Fashion” Model. It’s Mostly a Low-Priced DTC Apparel Story. (Asia Tech Strategy – Daily Lesson / Update) From the Concept Library, concepts for this article are:Competitive Advantage: Rate of LearningSMILE Marathon: Rate of LearningShare of Consumer MindEconomies of ScaleBargaining Power with Suppliers / Purchasing EconomiesFrom the Company Library, companies for this article are:Shein———–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

This podcast is about Alibaba's 2020 earnings and the strategy implications. But it is really about how Alibaba is positioned as a "product / service + commerce infrastructure" business. And whether ByteDance can break into Chinese ecommerce with an "attention + mini programs strategy". It's really a cool and important question.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.The cited Alibaba presentations are here:AliViews: Daniel Zhang on Alibaba Earnings and Future GrowthAlibaba Group Announces March Quarter and Full Fiscal Year 2021 ResultsThe cited Bloomberg article on ByteDance is here:ByteDance Eyes a New $185 Billion Business Ahead of Mega IPOThe cited quotes from Alibaba are below. And at my webpage.“During the past fiscal year, we made significant progress on our three key strategies, namely domestic consumption, globalization and cloud computing. Such progress demonstrated the tremendous power of Alibaba’s digital commerce infrastructure as well as our long-term commitment to invest for the future and to create value for our consumers, merchants and partners through innovations. ”"We believe the key to unlocking the full value of the community marketplace model is not only about the standalone P&L of the business but also about the overall efficiency and servicing capabilities of the entire commerce platform where the business sits, and we believe the latter can generate far greater value than the former. Alibaba has the most sophisticated and efficient commerce infrastructure in China, with the most comprehensive product and service offerings to serve consumers of diverse segmentation and demands."—–—-Related articles:Alibaba Takes Over Sun Art Retail. Is It Going to Take Off? Or Is It Infrastructure? (pt 1 of 2) (Asia Tech Strategy – Daily Update)Could Sun Art Grow +30% Under Alibaba? (pt 2 of 2) (Asia Tech Strategy – Daily Update)From the Concept Library, concepts for this article are:New RetailOnline Merge Offline (OMO)Mini ProgramsFrom the Company Library, companies for this article are:AlibabaByteDance-----------Support the show

This podcast is about the super cool economics of Adobe Inc. And how they capture the economics of digital by also building strong competitive moats. In Adobe's case, it's mostly network effects and bundling.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.The digital economics terms cited are:Zero marginal production costs.Low distribution costs.Non-rival goods that can be simultaneously used.Global scalability at low cost.Versioning. Multiple versions of their products can be easily created at different price points.Bundling.Complements can be added.Lots of integration into other software and products.—–----Related articles:Software and the Sexy but Dangerous Economics of Digital (pt 1 of 3)Digital Economics II: Why Pricing Is Getting Both Complicated and Critical. (Jeff’s Asia Tech Class – Podcast 53)How Digital Creates and Destroys Competitive Advantage. Digital Economics II. (Jeff’s Asia Tech Class – Podcast 55)From the Concept Library, concepts for this article are:Standardization and Interconnection Network EffectsSubscriptions, Cross-Selling and Integrated BundlingFrom the Company Library, companies for this article are:Adobe Inc.-----------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

Competitive advantages can be build on the demand and the supply side. And advantages on the demand (i.e., revenue) side are usually about customer capture in some form. One general category for this is when a company captures a "share of the consumer mind."In this talk, I go into how some companies do this for their own benefit. And against the interests of the consumer. I call these types of competitive advantages "evil moats".You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Here are the books and articles I mentioned:Hooked: How to Build Habit-Forming Products. By Nir EyalThe Power of Habit: Why We Do What We Do in Life and Business. By Charles Duhigg.Addiction by Design: Machine Gambling in Las Vegas. By Natasha Schull.How Technology Is Hijacking Your Mind. By Tristan Harris.---—–Related podcasts and articles are:WeChat, TikTok and Capturing the Consumer Mind in a Digital Age (Jeff’s Asia Tech Class – Podcast 36)From the Concept Library, concepts for this article are:Share of the Consumer MindFrom 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 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 online-merge-offline (OMO) platforms. A business model that is just emerging in China. I talk about Sun Art Retail and Beike / Lianjia as examples.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Here is the BCG article I mentioned.—–Related podcasts and articles are:Lianjia and Beike’s Big Platform Play in Chinese Real Estate (Asia Tech Strategy – Daily Update)Alibaba Takes Over Sun Art Retail. Is It Going to Take Off? Or Is It Infrastructure? (pt 1 of 2) (Asia Tech Strategy – Daily Update)From the Concept Library, concepts for this article are:Digital Physical HybridsNew RetailOnline-Merge-Offline (OMO)SMILE Marathon: Ecosystem Orchestration and ParticipationOMO PlatformsFrom the Company Library, companies for this article are:AlibabaSun Art Retail GroupKE Holdings / Beike / Lianjia—-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

This week’s podcast is about the current political risks around Alibaba. But also about the very important concept of Worst Case Scenario.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Here is the Harvard Business Review case about Viva Macau.Here is the book I mentioned, Dead Companies Walking by Scott Fearon.–—–Related podcasts and articles are:My 9 Investment Questions (Asia Tech Strategy – Podcast 75)From the Concept Library, concepts for this article are:Worst Case Scenario (Question 9)From the Company Library, companies for this article are:Alibaba———-—-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