Thanks Jamie for the great post. Your analysis on the logistics/cost center side of the business was very insightful and and illustrated key areas of competitive advantage. Another aspect I would love to better understand is processes on the product side, such as the recipe generation, that differentiate Blue Apron from competitors. It seems very much a price game currently and I believe there is tremendous customer value in just having the food taste good. You also highlighted some important concerns. I do believe there is still demand for pre-planned meals despite the number of different meal options because the comfort of having a “home cooked” meal will never disappear. It could mean shifting the target customer or making changes to its operating model. At any rate, it will be an interesting and dynamic situation to follow.
Great post, Jeff. It was very insightful on the business model of EOG. I thought the backward integration of owning sand mines is an interesting competitive strategy. You noted cost efficiency as a key differentiator and I would love to know how EOG is navigating the current environment. Are they still profitable if oil continues to hover the $40 mark for the next couple of years? If not, what other areas have opportunity for higher cost efficiency? Also, on the topic of having the highest BOED in the industry, how do they structure their organization to make the decentralized model effective? I’ve always assumed drilling operations to be labor intensive work.