The Tech Strategy Podcast

Latest Episodes:

JD vs. Alibaba: How Retailers and Marketplace Platforms Compete and Evolve in China (18) Feb 23, 2020

Show notes

In this class, I talk about how online retailers like JD and marketplace platforms like Alibaba compete on different dimensions.
You can listen here or at iTunes and Himalaya.
Alibaba and marketplace platforms compete on:

Cost and / or difficulty of entry - including the chicken-and-egg problem and the cost of the logistics network.
Competitive advantages - including network effects (main one) and economies of scale in logistics, marketing and IT.

JD and online retailers compete on:

Cost and / or difficulty of entry - including the cost of the logistics network.
Competitive advantages - including supply cost advantages and economies of scale in logistics (mostly), marketing and IT

Key Learning Goal is #5: the basics of JD
Concepts for this class:

Digital-Physical Hybrids
Competitive Advantage: Economies of Scale
Competitive Advantage: Network Effects
Digital Platforms: Marketplaces
Cost and Difficulty of Entry
Linked Businesses

Companies for this class:

JD
Alibaba

———-
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.
www.jefftowson.com

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Review: Why Digital Platforms Are The Super Predators of Business (16) Feb 10, 2020

Show notes

In this class, we review the basics of digital platforms, which is one of the key learning goals for Level 2.
You can listen here or at iTunes and Himalaya.
Concepts for this class:

Pipelines vs. Platforms

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Review: The Sexy But Dangerous Economics of Digital (15) Feb 04, 2020

Show notes

In this class, we review the basics of digital economics, which is one of the key learning goals for Level 2.
You can listen here or at iTunes and Himalaya.
Concepts for this class:

Digital and Information Economics

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My Visit to WeChat and Why They Are Smarter Than Apple and Facebook (13) Jan 15, 2020

Show notes

In this class, I discuss my visit to the WeChat Open Class. And why Allen Zhang and the WeChat team are doing so much better than Facebook and Apple.
You can listen at my website or at iTunes and Himalaya.
Allen Zhang's video from the event is here.
———-
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.
www.jefftowson.com

Support the show

Why Digital Is Disrupting Business, Politics, Culture and Society (11) Jan 05, 2020

Show notes

In this class, I discuss some of the theory behind ecosystems, firms and coordination costs. And why digital platforms are having such a big impact on business, culture / media, politics / government and society.
You can listen at my website or at iTunes and Himalaya.
———-
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.
www.jefftowson.com

Support the show

My Visit to JD's E-Space: Is It a Game Changer for Department Stores in China? (10) Dec 29, 2019

Show notes

In this class, I discuss my visit to JD's new 50,000 sqm e-space in Chongqing - and the question of what new retail (i.e., online-merge-offline) will mean for department stores and shopping malls.
You can listen at my website or at iTunes and Himalaya.
———-
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.
www.jefftowson.com

Support the show

Why Did Ofo Fail? What Should They Have Done? (8) Dec 15, 2019

Show notes

In this class, I discuss bike-sharing company Ofo. And their spectacular rise and fall in China.
You can listen here or at iTunes here.
The exercise for this class is:
What should Ofo have done?
1) Partner with a major digital platform ASAP. No matter what it takes.
2) Copy Hellobike. Avoid the competition. Go to markets or segments with little competition and try to get to operating break-even.
3) Split the company into a good co and bad co. Fund the good company and don't tie it to the cash drain of the bad co.
4) Carl Icahn option. Go activist investor and try to split the company, replace management or other.
What would you recommend to the CEO?

Write 3 paragraphs with your answer. Do it on your smartphone. Or a PC. Or a piece of paper (take a picture and save it).
Think about bundling and the emergence of greater ecosystems.

The McKinsey slide cited is here.
Articles / podcasts cited in this class:

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Should Vipshop Build a Logistics Network Like JD? (7) Dec 11, 2019

Show notes

In this class, I discuss Vipshop and JD. And how smaller ecommerce sites can compete with larger players in China, especially in logistics.
You can sign-up for my Asia Tech course here. Or at my website www.jefftowson.com. With a 30-day free trial. You can subscribe at iTunes at the above button.
The exercise for this class is:
Which of these three options make sense for Vipshop in logistics?
1) Copy JD: Build an in-house logistics and delivery network.
2) Copy Alibaba: Work with multiple partners (in logistics and/or ecommerce).
3) Outsource logistics: Find a partner or contractor for this. Just be an ecommerce site.

Now make a decision: What would you recommend to the CEO?

Write 3 paragraphs with your answer. Do it on your smartphone. Or a PC. Or a piece of paper (take a picture and save it).
Think about versioning and competitive advantage.

Articles cited in this class:

An Introduction to the Sexy but Dangerous Economics of Digital

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Will Luckin, Mobike, Didi or WeWork Ever Be Profitable? (6) Dec 01, 2019

Show notes

In this class, I discuss Didi, Luckin and Mobike and how to predict if they will ever be profitable.
Exercise for this class:

For Mobike, Luckin or Didi, think about the following two aspects.
- Consumer view: What do they care about? What is their journey for buying and using?
- Competitor: Could a well-funded, well-run competitor take 10-20% of their business? Five forces and competitive advantage are useful here.
- Digital economics: Do any of the following really change their business? Or your answers to the above?
  - Zero marginal cost of production
  - Non-rival goods. Can be used by multiple customers simultaneously.
  - Durable vs. consumed as a product or service.
  - Low or zero distribution costs. Does it have global reach?
Now make a decision: Will this business be profitable? Will the unit economics be positive eventually?
- Write 3 paragraphs with your answer. Do it on your smartphone. Or a PC. Or a piece of paper (take a picture and save it).

Articles cited in this class:

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Behind the Scenes with Alibaba on Singles' Day (5) Nov 16, 2019

Show notes

This is the fifth episode of my Asia tech class. It is a summary of my time with Alibaba on Singles' Day in China.
———-
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.
www.jefftowson.com

Support the show

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