What type of market are you operating in?
When we look at investment opportunities, we need to consider the type of market that the potential investment is in. How much room is there for a market leader or leaders? Is it winner-takes-it-all or winner-takes-almost-all? Is there room for multiple potential winners? Winner takes all These markets are driven by network effects and only […]
The future of online marketplaces: “complex” transactions
The most successful online marketplaces today facilitate relatively simple transactions. There’s eBay and Etsy for buying/selling goods, AirBnB for short-term accommodations, and Uber for local transportation. While reputation mechanisms (i.e. user reviews) play an important role on these platforms, the price tags involved are typically low enough that customers are ready to deal with strangers […]
The engagement threshold: transforming one-time customers into repeat business
Are you focused on new sales or bringing in loyal, repeat customers? Whenever a business is completely dependent on new customers, it’s vulnerable. Not only are customer acquisition costs high, but new customers are just as likely to turn to any new competitor that enters the market. The better a company is at turning one-time […]
4 ways to compete in Amazon’s shadow
“If it has a UPC code, Amazon will beat you.” Thanks to a bigger inventory, low prices, convenient return policy, trusty user reviews, and services like Amazon Prime, Amazon is the world’s largest retailer and doesn’t seem to be moving from that position any time soon. But even in the shadow of Amazon, there are several […]