The Tech Strategy Podcast

This week’s podcast is about JD Logistics. It's an interesting case of a capability becoming a service business. And maybe a new type of ecosystem.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Related podcasts and articles are:Introduction to Innovation, Elon Musk and Android’s Dominant Design. (Jeff’s Asia Tech Class – Podcast 58)Alibaba, Android and The Emerging Art of Ecosystem Management. (Jeff’s Asia Tech Class – Podcast 57)From the Concept Library, concepts for this article are:Ecosystems vs. Digital PlatformsSMILE Marathon: Ecosystem Orchestration and ManagementFrom the Company Library, companies for this article are:JD LogisticsAT&TAndroid———-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

Discover how Coupang dominates the South Korean market through production cost advantages, technology, and distribution network density. Learn about their strategic approach to superior customer experiences and their aim to build a competitive fortress in retail. Explore the potential expansion of e-commerce businesses into new digital services and partnerships with other players.

This week’s podcast is about revenue scale and operating leverage in traditional companies vs. software vs. AI. And these things can be really different. Especially software vs. AI.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Here are the three factors I mentioned that interact for operating leverage:RevenueOperating profitsEconomic value creation (i.e., vs capital)Here are the books I mentioned:Platform Scale: How an emerging business model helps startups build large empires with minimum investment Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You: How Networked Markets Are Transforming the Economy―and How to Make Them Work for You Kindle Edition Related podcasts and articles are:N/AFrom the Concept Library, concepts for this article are:Valuation (Question 3): Operating LeverageValuation (Question 3): Revenue Scale and GrowthSMILE Marathon: AI/ MLFrom the Company Library, companies for this article are:N/AThis is part of Learning Goals: Level 7, with a focus on:34: 9 Questions--------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 Roblox and the question of whether this media type will really take off. And I argue this is an interesting evolution of the audience-builder platform.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Here is the article I mentioned:ByteDance vs. Kuaishou: Innovator vs. Fast Follower Strategies for the China Attention Market (Asia Tech Strategy – Daily Update)Related podcasts and articles are:7 Reasons Digital Platforms Fail (Jeff’s Asia Tech Class – Daily Lesson / Update)From the Concept Library, concepts for this article are:Platforms: Audience-BuildersFrom the Company Library, companies for this article are:RobloxKuaishouThis is part of Learning Goals: Level 4, with a focus on:12: Basics of Tiktok / Douyin and Audience-Builder Platforms------------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 network effects. And I argue they are actually three effects at the same time. Plus some stuff about So-Young's marketplace for services.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.The 3-4 types of effects with network effects are:Competitive AdvantageBarrier to EntryOther Competitive Advantages such as switching costs.FlywheelHere is the article I mentioned:16 Ways to Measure Network EffectsRelated podcasts and articles are:7 Reasons Digital Platforms Fail (Jeff’s Asia Tech Class – Daily Lesson / Update)From the Concept Library, concepts for this article are:B2B Customer View: Necessary, Strategic vs. CriticalPlatforms: Marketplaces for Products and ServicesNetwork EffectsFrom the Company Library, companies for this article are:So-Young InternationalThis is part of Learning Goals: Level 7, with a focus on:35: Competitive Advantage and Digital CompetitionI 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 some of the bigger strategic initiatives at WeChat. Specifically mini programs, search, mini games and WeChat Work.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Related podcasts and articles are:WeChat, TikTok and Capturing the Consumer Mind in a Digital Age (Jeff’s Asia Tech Class – Podcast 36)WeChat Work and Why Enterprise Tools Will Be Very Different in Mobile-First ChinaFrom the Concept Library, concepts for this article are:Complementary PlatformsDigital Competition PyramidFrom the Company Library, companies for this article are:WeChatTencentThis is part of Learning Goals: Level 7, with a focus on:35: Competitive Advantage and Digital Competition I write and speak about digital China and Asia’s latest tech trends.I also run Jeff’s Asia Tech Class, 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 my third on the well-known 7 Powers framework by Hamilton Helmer. I go through the last 4 of his 7 powers.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.His fundamental equation of value is:Value = M0*g*s*m = market scale * powerM0 is Market at time zero. g is growth. This is about targeting big and growing market opportunities.S is long-term persistent market share. How much of it you haveM is long term persistent margins. (operational margins after cost of capital)You can also do potential value = market scale * power.His break-down of branding is that it evokes positive emotion, leading to increased willingness to pay.Affective valence. Built-up associations that elicit good feeling that are distinct from the objective value of the good.Uncertainty reduction. Peace of mind because confidence the product will be as expected.A brand requires lengthy period of time with reinforcing actions (hysteresis). Legacy brands tend to be powerful. Hard to replicate in short term. Or with copycats.His break-down of cornered (or scarce) resource is that it must be sufficiently potent to drive high-potential, persistent differential margins (m>>0), with operational excellence spanning the gap between potential and actual. He has five screening tests for cornered resource:Idiosyncratic. Such as a brain trust with repeated success over time.Non-arbitraged. If a firm gains preferential access to a coveted resource but also pays a price that fully arbitrages out the rents attributable to this resource – then doesn’t matter.Transferable. If resources creates value at one company, but cannot if transferred to another, then it is not good. Probably has an essential complement.Ongoing.Sufficient. It must be complete enough to continue producing differential returns assuming operational excellence.Related podcasts and articles are:4 Problems with Hamilton Helmer’s 7 Powers (Jeff’s Asia Tech Class – Podcast 62)Economies of Scale and Switching Costs According to 7 Powers (Jeff’s Asia Tech Class – Podcast 64)From the Concept Library, concepts for this article are:Competitive Advantage: Share of Consumer MindCompetitive Advantage: Surplus Margin Leader in Network EffectsCompetitive Advantage: Proprietary technologyCompetitive Advantage: Process Advantage and Learning AdvantagesCompetitive Advantage: Scarce ResourceFrom the Company Library, companies for this article are:None ---------I write and speak about digital China and Asia’s latest tech trends.Support the show

Hamilton Helmer, author of the 7 Powers framework, discusses economies of scale and switching costs. He breaks down market scale, growth, long-term market share, and margins. Exploring fixed costs, distribution network density, and learning economies. Switching costs include financial, procedural, and relational costs. Emphasizing the strategic impact on industry dynamics and the role in successful business strategies.

This week’s podcast is on the well-known 5 Forces framework by Michael Porter. I go through some of its limitations and where I think it works best.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Michael Porter's 5 Forces:Bargaining power of suppliersBargaining power of buyersThreat of SubstitutesBarriers to entry / threat of potential entrantsDegree of existing competitive rivalryRole of complements?My 4 problems with this are:It doesn’t work for dynamic and non-classical strategy terrains.It doesn’t work for platforms and ecosystems.It doesn’t work with SMILE marathon dimensions, particularly innovation.The addition of complements doesn’t really cover the emergence of a connected, digital world.Related podcasts and articles are:4 Problems with Hamilton Helmer’s 7 Powers (Jeff’s Asia Tech Class – Podcast 62)From the Concept Library, concepts for this article are:5 ForcesInnovation4 Terrains and Strategies (BCG): Predictable vs. MalleableSMILE MarathonFrom the Company Library, companies for this article are:None———-I write and speak about digital China and Asia’s latest tech trends.I also run Jeff’s Asia Tech Class, 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 on the well-known 7 Powers framework by Hamilton Helmer. I go through some of its limitations and where I think it works best.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Hamilton Helmer's fundamental equation for value creation and captureValue = M0*g*s*m = market scale * powerM0 is market size at time zero. This is about targeting big and growing market opportunities.S is long-term persistent market share.m is long term persistent margins (operational margins after cost of capital).Hamilton Helmer's 7 Powers:Scale EconomiesNetwork EconomiesCounter PositioningSwitching CostsBrandingCornered ResourceProcess PowerFrom the Concept Library, concepts for this article are:7 PowersCompetitive Advantage4 Terrains and Strategies (BCG): Predictable vs. MalleableSMILE MarathonFrom the Company Library, companies for this article are:NetflixThis is part of Learning Goals: Level 7, with a focus on:35: Competitive Advantage——–I write and speak about digital China and Asia’s latest tech trends.I also run Jeff’s Asia Tech Class, 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