Thank you for this post Catherine!
As a road biker and fan of studio cycling it is hard for me to see Peloton as a possible competitor. Its business model and value proposition are very attractive and I see the potential this company has. However, I do believe that the target market should be completely different than SoulCycle. In my opinion, road bikers and “die-hard” studio riders as Phoebe mentioned above, are people looking to ride in groups, with people that share the same interests in the sport, the same level and want to compete with each other to improve. The community aspect of the sport tends to be as important as the sport itself. Hence I believe is important for Peloton to look for its ideal target market, as this article mentions (1).
Nevertheless, I love the idea! It is extremely convenient and provides a very broad range of features. Different instructors, classes, DJs, settings etc (2) so in terms of ROI, it is definetely a good bang for your buck!
Gonzalo thanks for this post! I was truly amazed by the consequences of this inefficient process. One thing that I believe is important to consider when talking about apps used while driving is safety. Nowadays, the use of cellphone (and particularly apps) cause over a quarter of car accidents in the United States, and the trend is increasing (1). I wonder how FastPark is dealing with this issue. Something that the company can enforce is only allowing access to the app when the car is completely stopped or moving below 5 mph (the PokemonGo app has something similar to avoid people using it while driving). The other thing that I would like to know is how the company plans to make money to cover the investments of the new technology? Is it subsidized by cities due to the benefits you mentioned? or will this mean that parking will be more expensive for the citizens? I believe these two questions are important to understand how sustainable the business model is.
Thank you for the post DK!
Mobile banking is a fascinating subject to me. Imagine the potential impact this technology can provide to developing countries if in the U.S (where traditional banking is available everywhere), apps such as Venmo, Paypal among others already have become important aspects of our lives. This concept of financial inclusion that M-pesa is striving for by lowering transaction costs will not only improve the quality of lives of the Kenyan families but also will aid the country’s economic growth (1). However in order to do so, M-pesa will need broaden the services it offers to its customers. The latter will not be an easy task. In order for M-pesa to tap into services such as remittances, mortgage payments among others it will need to meet regulatory compliance (2). I wonder if the company plans to enter that space and battles those complications in its quest to provde financial inclusion to the Kenyan population.
Thanks for the post Sujay!
Hired definitely aims to solve inefficiencies in a process that has been the same for long time! I also believe that besides a more transparent and cheaper process, Hired should also focus in trying to shorten the time it takes to make a match. I wonder if currently there is a “pre-screening” phase inside the company that filters out candidates that are not necessarily good prospects? Additionally, as the database becomes bigger, I believe the time component will be an important differentiator hence the use of technology to do matching, screening and candidate assessment will be key (1). Is there anything planned in this area? Finally, I am also curious about the retention data the NS commented above. If I understood the process correctly, through Hired, candidates do not submit a resume, which in my opinion is the most objective piece of information for companies as it lists concrete achievements. Do you feel that by not requesting this, Hired is adding subjectivity to the hiring process which could result in a poor match?
Thanks for the post!
Dear Shray, thank you for this great post!
You bring out a great topic and also exemplify how almost every industry is contributing to climate change and the importance of accountability when it comes to the big players in those industries. Mcdonald is a great example of a company with a business model that directly impacts global warming. But on the flip side, is also a great example of a company that is aware of the consequences of its business model and that is actively doing something about it. You mentioned that the initiatives the company is currently doing will impact their business by affecting the variables that made them competitive on the first place, price. However, I believe that Mcdonalds’ approach has been extremely clever. They have started a campaign to transform most of their stores to its new concept Mdonald Next. The idea is to offer a broader menu by not only offering healthier options (made to order salad bar, quinoa) but also elevating the service of the fast food chain (1). By doing this, the company is planning to attract a wider range of customers and capture value inside the market of people who are currently under the “healthy movement”. This approach can help the company in its quest of becoming more eco-friendly by sourcing raw materials from certified suppliers and also increasing the value proposition of the company. The latter will probably result in a higher price but specific for an alternative menu. If Mcdonalds is able to expand its market share beyond the fast-food market, it can both help alleviate the impact of its operations on the environment while not necessarily taking a hit on its profitability.
Thanks for the article Vicente. I totally agree that the airline industry represents one of the biggest challenges on the fight against climate change. One of the first challenges that I see is the fact that the industry has experienced a significant decrease in yields due to an over capacity situation. Luckily, the low fuel prices have aided airlines to survive the adverse market conditions and in some cases even make profits. Nevertheless, the industry has suffered a transformation with a lot of mergers and acquisitions. The latter has helped mayor airlines increase their bottom lines and allowed them to invest in more efficient planes, as you correctly mentioned in your post. Many airlines are receiving up to 7 new planes daily and quickly replacing old equipment with these new B786, A350 with the hopes of making their routes more profitable and reducing the impact on the environment. However, I do see an area of tension inside the industry and that I wanted to share with you. Currently the business model of low cost airlines is driven by the concept of add-on pricing. A concept that in most cases can be extremely profitable for the airline. Nevertheless, these low-cost players tend to use old planes since they do not posses the capital to invest in newer technology. As a result, we have airlines that are profitable driven by a business model that will not incentivize them to change. I believe governments, should closely look at this issue and find ways on how to alleviate this situation. Global players will always look for ways to reduce cost, which in the airline industry translates to reduce fuel consumption, however I do not see that in low-cost players. Something else needs to be done to protect both the industry and the environment of an operating model that hurst the customer on our planet.
Ryan thanks for this post! I totally agree with you, the impact of climate change on tourism is concerning and many people are not even aware of the effects this could bring to the Caribbean countries. In my opinion, the challenges resorts like AMR are facing are twofold. First, currently it is very hard to understand the relationship between climate change and tourist behavior. This fact can pose severe difficulties to not only resorts but the industry as a whole, making it hard to accurately forecast demand. The latter can result in either over or under investments in terms of infrastructure; which can not only harm the industry but also possibly exacerbate the impact of global warming. The second one relates to what you mentioned, the high costs of relocating resorts. In fact, it is estimated that this costs can reach $10-25 billion dollars by 2050 in the caribbean only (1). However, does not end there, a rise in sea-level can be even problematic for airports and roads impeding, in the short-term, the access of tourists and increasing, in the long term, the cost of making these resorts an option for families.
“It is impossible for Tesla to build electric cars fast enough to address the carbon crisis.” (1) that is what Elon Musk said when his company decided to go open source and share the patents of Tesla cars. This quote reinforces why I am a strong believer of Elon, and the reason i believe he is one of the biggest innovators of our time that is actually trying to build something sustainable for our planet. He has generated a movement in which not only his companies are addressing important issues but also its competitors. Through his approach, Elon has managed to bring the attention from big players across multiple industries (automotive, aerospace etc…). He has taken the competition of sustainable companies to another level. As a passionate follower of Elon and all of his companies, I believe his main challenges are two. First, to keep converting “non-believers”. Elon is trying to disrupt two of the biggest industries in the planet and in order to do that he has taken several risks. We all have seen how his rockets have exploded or his cars crashed, and those failures just help strengthen the arguments of the critics. I have a really hard time thinking how he can change the mindset of people who are currently against him after all of this companies have already demonstrated the enormous value that they bring to society. Secondly, electric cars are a first great step to alleviate the footprint the transportation industry has on our environment but it will be extremely naive for us to think that all cars will be electric in the years to come. In order to solve the root cause of the problem, Tesla and all of us should be thinking how to replace what is currently filling the tanks of the cars, trucks, planes and boats that are currently running. One approach that seems achievable in the short term is converting solar energy into liquid form (2). Just a couple of thoughts that I wanted to add to your post!
Thank you for sharing and I hope more people could appreciate what Elon has achieved so far!
Sujay! Thanks for this great post!
I was curious about your approach since I wrote about the same industry but focused on the West Coast of the U.S. I totally agree with you. It is impressive the numbers that the Winter Sports industry brings to the economy and I was particularly impressed by the amount of “potential” jobs that can be lost due to lack of snow. Nevertheless, one particular thing that the industry is currently doing to combat that consequence is investing in its off-season activities. In fact, Killington spent 3.5 million dollars to attract people to its off-season attractions and they actually have experienced a 130% increase in customer demand from its summer operations (1). Hopefully a stronger summer season can alleviate the negative effect a weaker winter season has on the economy. However, I also believe ski resorts cannot stop there and need to invest further in order to reduce the footprint of their operations on the environment. One way of doing that can be using the additional revenues from the off-season attractions to subsidize eco-friendly initiatives; upgraded infrastructure, efficient equipment, awareness campaigns to name a few. I encourage you to read the attached article, you will enjoy it!