Category Archives: Strategy

Hyperloop – The economics make it unfeasible

Hyperloop - Elon Musk SpaceXElon Musk is a pioneer – first with Paypal, then Tesla and SpaceX and Hyperloop is his new concept to make transportation efficient. Hyperloop is the word making the rounds on various news websites, blogs and twitterverse. Some have heralded Hyperloop as the next great invention and the general buzz seems focused on re-thinking and re-inventing the traditional transport model. However, I see things a little differently.  The Hyperloop model sounds exciting but I just don’t think it’s feasible from an investment perspective.
Read More …

Facebook and Mobile Advertising – Part 2

3 months ago, I had written a post about Facebook Home and the potential of mobile advertising. I asserted that FB had the right strategy especially in terms of growing and not necessarily paying attention to satisfy investors. FB’s strategy is paying off. The additional spending in R&D focused on mobile advertising and user growth is paying “dividends”.
Read More …

Seth Godin & Backwards – A wisdom video

Seth_GodinI recently watched a talk by Seth Godin who talks about finding your audience and breaking out of the mundane routines. My wife who runs the popular blog LifeInSketch went to the talk and recommended it to me. Hosted by Creative Mornings at the New School in Manhattan the speaker that morning was the ever green Seth Godin. I had read Godin’s book “Permission Marketing” way back in 2000. Ever since, I had stopped following the author. However, when I came across this video by Creative Mornings,  I had to share.
Read More …

Cloud, Sofas & Economies of Scale

gotcouchAdobe recently announced its moving all its “boxed” software to the cloud under a subscription service. Some analysts claim that this is due to changing customer tastes. However, there is a stronger underlying reason. It’s to exploit economies of scale via the cloud, reduce costs and increase direct margins from product delivery. The decision might seem risky but it makes absolute sense. The only other facet of concern might be when reporting revenues. GAAP rules mean that Adobe will have to change from transaction based revenue – i.e. one time revenues need to be booked gradually. This deference in revenues will mean depressed earnings when the switchover happens.
Read More …

Facebook Home & Mobile Advertising

facebook-home-via-cnetThe battle for mobile advertising is heating up. While Google has a sustained business model for mobile advertising, Facebook is still testing the waters. Google’s mobile ad revenues are 4 times that of Facebook’s. Furthermore, ad metrics comparison between GOOG & FB is not necessarily straightforward. There is a simple underlying distinction – Google indexes the web and FB indexes relationships. Using that perspective its apparent how mobile ad revenues can balloon on either side – depending on the exponential growth rates of relationships or simply the future expanse of the “web universe”.
Read More …