The Impact of Disruptive Technologies on Long-Term Profitability

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Statistical work shows that industry cannot fully explain firm differences in profitability.
Disruptive technologies are not necessarily correlated with long-term profitability, but rather with product market fit.
Capability analysis alone is not enough to build great business models.
Persistence is a key factor in pattern recognition for entrepreneurs.
Apple's profitability is not a random draw and can be predicted to some extent.

7 Powers author Hamilton Helmer and his Strategy Capital colleague Chenyi Shi join us again to discuss their latest research on a topic that’s highly relevant to the recent Acquired canon: how to build a second business line. This incredibly important “transforming” question faces every great company who has achieved initial product success (as well as their investors). Do we continue solely along the established path, or do we attempt to grow new branches on the tree? Some companies grow new businesses with tremendous success — Amazon and AWS, Nintendo and video games, Nvidia and CUDA — yet many others fail miserably. For the first time Hamilton and Chenyi share their research-based playbook on how companies should approach this decision and choose wisely. Tune in!

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Link to Hamilton's 2-Axis Chart

Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.