Saved by Tekelala
Intel, Mobileye, and Smiling Curves
The tendency of computer-based industries to disintegrate over time is even clearer—with interesting exceptions—when we consider integration with the supply of basic hardware and peripherals.
David S. Evans • Invisible Engines: How Software Platforms Drive Innovation and Transform Industries
Market Selection in Vertical Integration
If you were to ask what sunk Convoy, it ultimately boils down to an over-dependence on the digital freight matching software they pioneered with a corresponding inattention to the operational parts of the brokerage that were really low margin. Technology isn’t a panacea for operational excellence. Every vert... See more
If you were to ask what sunk Convoy, it ultimately boils down to an over-dependence on the digital freight matching software they pioneered with a corresponding inattention to the operational parts of the brokerage that were really low margin. Technology isn’t a panacea for operational excellence. Every vert... See more
Eli • Metropolis
The value chain for any given consumer market is divided into three parts: suppliers, distributors, and consumers/users. The best way to make outsize profits in any of these markets is to either gain a horizontal monopoly in one of the three parts or to integrate two of the parts such that you have a competitive advantage in delivering a vertical s... See more
Ben Thompson • Aggregation Theory
As the market's understanding of software companies has matured, increasing numbers of investors have capitulated to higher and higher prices. Tech companies are still at relative highs compared to historical average multiples before 2021. Modern software businesses can be better businesses than most investors realize. You can make a lot less money... See more