Aligning Business Models to Markets - Kwokchain

Changing market dynamics, business models, and the resulting features of these companies are all tied together. Business models like USHG enable restaurants to invest more than others in service, not just talk about it. Structural changes in the demand side of the restaurant industry ripple downstream into the flourishing of new business models.

But at a more general level, whether the shift from enterprise to SaaS or the shift from listings to marketplaces to vertically integrated services. Our business models change as a function of the structure of their markets.

Thesis: providing advancement opportunities is one way of combating turnover.

As the cost of forming startups decreases and capital availability increases we see a proliferation of options for consumers in any given category. This market supply fragmentation provides users with more options–and shifts leverage in the market towards demand.

This is identical to what we see all over tech today. As the structures of markets change, the optimal business models change with them. Business models are how we align and reconcile the markets needs with the cost and human capital required to provide them. Alignment of markets and the costs to serve them is core. And as either side changes, so t... See more

When we understand the structural shifts in our industries we can understand the second order impacts of them that ripple down to the business models and companies that thrive. And many of them rhyme more than we think.

Thesis: turnover makes it hard to invest in training, which is a prerequisite for service.