Appreciate the insight on the inflection point framework.
There will no doubts be opportunities coming out of the COV-ID 19 pandemic as noted. I’m curious if you’ve personally identified any inflection points in terms of behavioral changes stemming from the pandemic (e.g., you are more in favor of buying groceries online, etc.)?
Hi J, thanks for the dialogue. Spot on comment, COVID-19 has indeed accelerated many consumer behavior trends, online groceries, like you mentioned being one, but also food delivery, remote work, telemedicine, etc. Some of the behavioral changes are here to stay, while others will revert to the mean if the business model does not evolve quickly (e.g., telemedicine). I am more interested in the second and third order effects of these trends. For example, Amazon has a razor thin margin on its grocery delivery services because of high operational costs. A spike in volumes does not fix that, so Amazon will have to accelerate automation to improve the business unit economics. These second and third order effects will create many business opportunities in the next few years, the technology sector being the big winner.
Loved the discussion and the inflection point framework
You should write a book
Appreciate the insight on the inflection point framework.
There will no doubts be opportunities coming out of the COV-ID 19 pandemic as noted. I’m curious if you’ve personally identified any inflection points in terms of behavioral changes stemming from the pandemic (e.g., you are more in favor of buying groceries online, etc.)?
Hi J, thanks for the dialogue. Spot on comment, COVID-19 has indeed accelerated many consumer behavior trends, online groceries, like you mentioned being one, but also food delivery, remote work, telemedicine, etc. Some of the behavioral changes are here to stay, while others will revert to the mean if the business model does not evolve quickly (e.g., telemedicine). I am more interested in the second and third order effects of these trends. For example, Amazon has a razor thin margin on its grocery delivery services because of high operational costs. A spike in volumes does not fix that, so Amazon will have to accelerate automation to improve the business unit economics. These second and third order effects will create many business opportunities in the next few years, the technology sector being the big winner.