This retail tech company’s use of AI has gained the envy of Amazon. Dive into how Stitch Fix reinvented retail and personalized shopping with a mixture of AI and expert stylists.
Shekeyla Caldwell Sandore's Profile
Shekeyla Caldwell Sandore
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Many companies recognize the growing need for data but less have the capabilities to manage and implement their data. That’s where BCG comes in.
This breakthrough platform decided to offer a broad selection of free services to funnel customers to their registry store. Look into how Zola created an engaging platform for the engaged and newlywed by offering exciting commitment free membership.
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Great article, Omar! I would make the same warning for Netflix when it comes to its rising competitors. However, I think that a big advantage Netflix has over a Disney+ is that they are less bound to a particular content brand. Disney+ for example really will have a difficult time breaking away from the family friendly material that brought it success over the decades. Netflix is unbound by this type of pressure to be somewhat PG and that can play to their advantage.
Thanks for the article, Kyle. I definitely agree that major elements of this industry will remain with people itself but I do see where AI can make positive differences that are actually welcome by the end customers. The LOLA application seems like something we would have enjoyed in the Beer Games simulation last year as I think this could really help supply chain predictions as well as the intended sales recommendations.
My hunch is that there is a mix. I think there was likely more acquisition in the earlier stages of the programs but now they are sustainable on their own. I think the desire is to provide this in-house so that they can control more of it as a service going forward.
Here is an example of an acquisition to grow Gamma: https://www.bcg.com/press/20may2019-bcg-acquires-kernel-analytics
I agree, there is a real force pushing the traditional generalist out of their box. I worked over the summer as a traditional consultant but I was partnered with the Gamma team. This certainly pushed me to be more skilled in the digital area just to stay in the know!
Very interesting to see who will be at the forefront of this field.
Good to know I have another future co-worker! Happy to chat separately about my experience with Gamma.
I worked on a team that included BCG Gamma during my summer internship. Happy to chat about the client type we were serving! They are a tech heavy fitness company but they needed help utilizing the data they were gathering.
Very interesting, yet slightly disturbing article. You have to ask if the same 80% of people would be willing to opt-in for research if they put the name GlaxoSmithKline instead of 23andMe. It certainly seems unethical to sell data that people have volunteered to you. I would be curious about regulation catching up to programs like this and what aspects of the process would be altered.
Interesting article, Karl. I’m curious about the first-mover advantage here and if they’ve created a formula for another company to copy them in a different state where they are not yet known. While they are yet to break the code for the economics of the business, it seems that gaining market share could be the most important task in this volatile but growing industry.
Thanks for putting thought into this side of investing, Jibran. I think data science is inevitably going to grow as a part of investing but I’m excited to see how firms use it as a competitive advantage. As you mention, it is very costly to do this in-house. However, I feel that in-house is the main way that firms can use the analysis to their advantage. In an industry like investments, having an edge can go a long way. It makes me think that further consolidation in the industry may be next because only the larger firms can afford to build out their internal data science systems.
Great article, Vartan! I’ve taken an interest to Twitch in the last year after covering a case on Ninja (Tyler Blevins) last semester in a BEMS course.
I think the network effects we’ve seen are incredible: from super star talent like Ninja or even the popularity of Fortnite lifting Twitch’s popularity and usage. When it comes to diversifying their offerings, I’m curious as to how they plan to replicate the network effects, if at all. Given the criticism on the environment not being inclusive, diverse talent and management might be extremely additive.
Vartan, great thought on the referral program. They do have one actually!
https://www.zola.com/wedding-registry/inviteI think the $20 reward is low , however, in comparison to how much they require the new joiner to spend ($100). I think a better referral program would be to give away a % of the thank you cards because it is directly related to after-wedding expenses that couples have to pay for.
Thanks, Daniel! I completely agree that the Vendor features are going to be very interesting to watch. I don’t think they’ve cracked the code on making it easy but I look forward to what they may think of in the future.
Thanks for putting this article together, John. I’m extremely interested in how the typical way that we discover new artists and stream music is changing drastically in our current digital age.
I disagree with Karl in that I think the freemium model was absolutely necessary. The network effects made this platform work in the earlier stages. As with Spotify, it pulled me in because it was free and I was a broke undergrad student. After years on the platform, I upgraded to the premium version of Spotify because I just wanted to get rid of commercials and the option to download playlists for offline listening.
If Soundcloud changes their pricing strategy too drastically, they stand to lose many of the users that made them a well-known platform today. I am all for moderate modifications so that they do not scare away customers all at once.
Thanks for pulling together this insight, Molefe. WeWork is a very interesting example of how you can find a real need and solve the need with a digital aspect such as a desk-share platform.
I find that there is a little bit of the Starbucks effect seen here. WeWork is not just about the desk you rent but also about the environment and sense of belonging that is created being around like-minded individuals. While Starbucks spent a long time period cultivating this brand of being your home away from home, WeWork tried to create it overnight. I wonder how the current results would be if WeWork focused more heavily on solidifying the branding vs the faulty rapid expansion they chose.
I think the point about player/staff health and safety is a crucial one. While the NFL’s measures weren’t perfect, we can see that their efforts were increasingly impactful over the season. In the preseason, multiple teams were unable to play (including the Patriots) due to a team spread outbreak. However, as the season went on there were less instances of this situation as they were quickly able to implement the technological strategies.
I agree that Covid has created the gateway to patients desiring a teledoc appointment. However, the impact can certainly outlast the pandemic. As users grow to enjoy the convenience of getting checkups from their home, there will be a clear ongoing need for all medical advisement that is not necessary for in person meetings.
Very interesting insight here. I agree most with the power of having the comfort shows you mentioned: South Park, Friends, etc. I think a great recent example of this being done poorly would be Netflix not retaining The Office, another binge-able show. Netflix could have deployed the same strategy as HBO to keep The Office and make sure that customers were retained.