Thanks for the great post! I think Xiaomi’s founder, Lei Jun, also played a very important role in this success. As a successful entrepreneur of series start-ups, he has very high profile network in TMT sector, which enabled Xiaomi to build significant awareness through Lei Jun’s personal influence even before the product launch. I am very interested to see where it goes with Xiaomi’s newly focus on Smart Home concept.
Very interesting post! I am wondering whether IKEA also has some secret sauce regarding manufacturing to improve their margin while keeping their price competitive. Also, it is also very interesting that how IKEA can remain competitive with such poor customer service….is this a strategic choice to de-prioritize investment in customer service?
That’s a very good question. I do have an exact answer on where is the optimal point to stop the investment on logistics. As far as I know, the per order logistic cost for JD.com has been dropping steadily thanks to rising volume. They have slowed down the investment pace and been focusing on improving margins starting in 2015. To me, the critical decision factor for JD is whether the current logistic network has built up a high enough entry barrier for potential competitors.
Thanks for sharing! Seems Target’s biggest mistake was the overly aggressive store opening plan with limited knowledge of the market and insufficient infrastructure support. What’s the most significant difference in buying behaviors between US and Canada?
Great post! It intrigues me that you mentioned Nike’s emphasis on sports segments rather than geography in organization structure as one of their edges. Is Nike the only one with such structure among the competitors? How do they coordinate among segments in operations? For example, regarding distribution managements, I think most of the stores carry products across segments. How does Nike manage these stores under such organization structure?
Thanks for the interesting post! Having been following the news on FIFA, I found your post very helpful for me to better understand the situation. I am personally skeptical about FIFA’s non-profit nature. To me, it provides covers for FIFA from better scrutiny from public, and therefore leads to the recent scandals.