Tag: strategy

Decentralized Operating Models Will Always Win the Day Over Centralized Counterparts

Decentralized Operating Models Will Always Win the Day Over Centralized Counterparts

Yesterday Expedia (ticker: EXPE) announced that its CEO and CFO had resigned effective immediately. The reason? A disagreement in strategy with Chairman Barry Diller. Expedia's former CEO and CFO had pursued a corporate reorganization to "streamline operations" to "drive innovation at scale." Our observation - certainly insofar as the Technology industry is concerned - is … Continue reading Decentralized Operating Models Will Always Win the Day Over Centralized Counterparts

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Growth at All Costs Leads to A Lack of Focus

Growth at All Costs Leads to A Lack of Focus

Over the past several years as I've read articles about Uber, WeWork and a number of technology startups, my takeaway is that many of these companies lack focus. They lack a focused mission. They lack strategic and operational focus. I understand the argument that institutional investors want growth in the absence of yield, but too … Continue reading Growth at All Costs Leads to A Lack of Focus

The Long Tail Will Differentiate You

The Long Tail Will Differentiate You

We are working on a project that has me thinking about the "long tail". For those who took Statistics you may recall that the long tail is the portion of the distribution where occurrences appear far away from the distribution's center. A long tail business strategy is one where the service provider makes hard to … Continue reading The Long Tail Will Differentiate You

The Road Less Traveled: Opportunity Cost and Shareholder Activism<span class="badge-status" style="background:red">Premium</span> 

The Road Less Traveled: Opportunity Cost and Shareholder ActivismPremium 

Opportunity Cost for Active Managers Is High Institutional investors typically contemplate opportunity cost within the context of portfolio returns, individual stock returns and ROIC. What however is the opportunity cost associated with pursuing a broken business model versus correcting course? The capital markets are filled with smart people and smart machines. It is more difficult than ever … Continue reading The Road Less Traveled: Opportunity Cost and Shareholder ActivismPremium 

Don’t Be Disintermediated

Don’t Be Disintermediated

Disintermediation Defined Disintermediation is when one party inserts itself between an interested party and its customers (see below table of “disintermediators” and “disintermediatees”).  Ironically, parties that suffer disintermediation often invite it upon themselves. Google Disintermediates Yelp and OpenTable For the past several years Yelp restaurant reviews appeared on Google business listings (this appears to have … Continue reading Don’t Be Disintermediated

Humans Will Lead The Machine Age

Humans Will Lead The Machine Age

Machines don’t complain. Machines don’t get sick. Machines don’t ask for a raise. Machines don’t get tired. Machines don’t take lunch. Machines can perform complex tasks – including surgical operations and making investment decisions. Perhaps most importantly – with the advent of machine learning – machines perpetually remain on the learning curve. The old axiom … Continue reading Humans Will Lead The Machine Age

Thinking Through Opportunity Cost & Corporate Strategy as EPS Season Approaches<span class="badge-status" style="background:red">Premium</span> 

Thinking Through Opportunity Cost & Corporate Strategy as EPS Season ApproachesPremium 

Making Numbers Is Not Enough The hallmark of a great company is not one that simply meets or beats consensus estimates with some regularity. Imagine if Reed Hastings and Netflix chose not to pursue the company’s over-the-top (“OTT”) strategy when investors where hungry for DVD profits. Imagine if Jeff Bezos and Amazon scaled back their … Continue reading Thinking Through Opportunity Cost & Corporate Strategy as EPS Season ApproachesPremium