Read on Twitter
Friday knowledge share
Today I came across an interesting business strategy / investment concept called Playing A Game of “Go” courtesy of @HaydenCapital
An overview
- In the game, a player puts a piece far away from where the action/battle is in order to mark their territory
Today I came across an interesting business strategy / investment concept called Playing A Game of “Go” courtesy of @HaydenCapital
An overview
- In the game, a player puts a piece far away from where the action/battle is in order to mark their territory
- This bcoz they know that sooner or later, the battle will eventually spread to the other side
- Therefore they stake their territory now, regardless of how far-flung it may seem bcoz it’s easier to defend that section later on than to attack an occupied territory
- Therefore they stake their territory now, regardless of how far-flung it may seem bcoz it’s easier to defend that section later on than to attack an occupied territory
- This is a powerful phenomenon as tech continues to blur the lines btwn traditional industries, change business models & how to reach customers
- This probably explains why Walmart, for example, is weirdly interested in investing in Tik Tok. Let’s flesh it out a lil bit
- This probably explains why Walmart, for example, is weirdly interested in investing in Tik Tok. Let’s flesh it out a lil bit
The video-first future of e-commerce
- Live streaming is transforming the way consumers interact with and purchase items online by interacting entertainment with e-commerce
- I’m future, we will all be shopping on video apps like Tik Tok whether it’s instant noodles or shoes
- Live streaming is transforming the way consumers interact with and purchase items online by interacting entertainment with e-commerce
- I’m future, we will all be shopping on video apps like Tik Tok whether it’s instant noodles or shoes
- Although live streaming e-commerce is still in its infancy in the U.S., judging by how it’s exploding in Asia, Walmart can already see that this battle is soon going to spread to its home market
- So what better way to mark the territory than to invest in TikTok’s US operations
- So what better way to mark the territory than to invest in TikTok’s US operations
- We are seeing similar models evolving in Asia. Ride-hailing company, Grab, in Singapore has moved into payments and are part of a consortium applying for a digital banking license. In China, SuperApps, companies that provide consumers with “all-in-one” functions, are the norm
So what can we takeaway from this
1. CAC (Customer Acquisition Cost) is the new rent
2. Once a company has acquired a customer, do whatever it takes to maintain and shape that customer experience, even if that means investing into completely unrelated businesses
1. CAC (Customer Acquisition Cost) is the new rent
2. Once a company has acquired a customer, do whatever it takes to maintain and shape that customer experience, even if that means investing into completely unrelated businesses
3. Bt to be successful requires an ability to combine the diversification of an old school conglomerate with the growth & decentralisation of an internet-native business
4. A few companies like Tencent have mastered this strategy. More US companies are adopting the same script
4. A few companies like Tencent have mastered this strategy. More US companies are adopting the same script
