Category: Strategy
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When businesses ask the wrong question
The question most businesses ask most frequently is “how am I doing compared to my direct competitor?” This is the wrong question, and it leaves businesses vulnerable rather than future-proof. Let’s use car ownership as a key example of a broader phenomenon. Car sales decline The transportation news making the biggest headlines over the last few…
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Netflix’s only hope is to advertise
A recent Wall Street Journal article, “Netflix Fights to Keep Its Most Watched Shows: ‘Friends’ and ‘The Office,” shared that only two of the top 10 shows on Netflix were original to the streaming service. Those shows were Ozark and Orange is the New Black, and they weren’t the most popular of the top 10. The three most-viewed shows…
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Ride-Hailing’s “iPod moment”
As I write this sentence, Lyft’s stock is worth $56.02 per share, which means that the stock has lost 41% of its value since its March 29th debut on the Nasdaq. Likewise, Uber will make its Initial Public Offering in the coming weeks, and it can expect a similarly bumpy ride as its filing has shown,…
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Ho Hum, Apple’s boring choices with TV+
There’s a passage toward the end of Walter Isaacson’s majestic biography, Steve Jobs, about what was on the Apple founder’s mind as he was dying of cancer: He very much wanted to do for television sets what he had done for computers, music players, and phones: make them simple and elegant. “I’d like to create an…
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Why Amazon’s house brands will win big
On Monday, a pair of Bloomberg articles by Spencer Soper surfaced a recent Jungle Scout study arguing that Amazon’s house brands aren’t selling well. For example, in apparel, “only one percent of Amazon’s total sales account for its private label brands.” One of Soper’s articles, “Most Amazon Brands Are Duds, Not Disrupters, Study Finds,” ends in a…
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Why Google Should buy eBay: Digital Assistant Wars
Last week, Allison Prang reported in The Wall Street Journal that eBay, under pressure from activist investors, is planning a strategic review of its assets, including its classified ad business and StubHub, in order to “drive meaningful shareholder value.” This is code for “we want to sell off a bunch of things in order to…
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Why direct-to-consumer (DTC) companies fail
Three popular letters this month are DTC, which stands for “direct to consumer.” DTC is an exploding category for low consideration products that we used to buy in person at the pharmacy or grocery store. Then we got Amazon and could order online. Now, we can also go directly to the manufacturer, cutting out the…
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Nonprofits are the real threat to Uber and Lyft
There is little that is technologically defensible about Uber or Lyft. Both companies combine a handful of off-the-rack features: a smart phone app, map, GPS, credit card, and a rider/driver-matching algorithm. It would not, therefore, be difficult to clone a ride-hailing competitor. For years, I’ve maintained that Uber the verb (“let’s uber there later”) will be…
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2023: Why Comcast should worry
For years I’ve thought that—while Comcast’s cable television business had a future that made polar bears wince in sympathy—its lock on the cable internet business made the company invulnerable. Sure, cord-cutting and cord-shaving are eroding cable TV. Younger people in particular, unless they are big sports fans, don’t bother to subscribe (cord-nevers). However, Comcast still…
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Amazon’s real reason for launching “Free Dive” isn’t about ad revenue
Late last month, the business rumor mill exploded with the story that Amazon subsidiary IMDB was to launch “Free Dive,” an ad-supported streaming video service that would be free to anybody who had an Amazon Fire TV device. Free Dive would be distinct from Amazon’s mostly ad-free Prime Video on Demand service because no Amazon…