[RDFN – Redfin] Business Model Analysis and Growth Constraints

[I am currently writing up a somewhat brief companion piece on Zillow.  It will be posted next week.]   Like healthcare and education, real estate is a massive market plagued by inefficiency, protected by incumbent interests, and resistant to reform.  If you’ve ever bought or sold a home, then you have no doubt been struck by […]
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[RAMP – LiveRamp] Ad Tech Situations are Special

Earlier this month, Acxiom completed the sale of Acxiom Marketing Services (AMS), a segment that accounted for ~3/4 of its revenue and nearly all its segment profits, to Interpublic Group for $2.3bn.  AMS partly helps manage the marketing operations of big brands – designing and maintaining customer databases, running custom performance analytics, aggregating third-party data(1) […]

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[CHGG – Chegg] Low Cost Channel to Bundled Ed Tech and Challenges in the Publishing Industry

If you were looking at Chegg in 2014, you’d have found plenty of valid reasons to pass on, or even short, its stock.  The company was plowing more than all its operating cash flow into textbooks and renting them out to students at increasingly discounted prices as it braved intensifying competition from Barnes and Noble, […]

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Discount Brokers: Disruption, Bundling, and the Battle for the Mass Affluent; Part 2

Related Post: Discount Brokers: Disruption, Bundling, and the Battle for the Mass Affluent; Part 1 Interactive Brokers Sustainably profiting from a commodity service like trade execution requires, at the very least, a low cost advantage, which in the brokerage space belongs to Interactive Brokers.  Despite realizing ~half the commission dollars per trade, Interactive generates the highest […]

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Discount Brokers: Disruption, Bundling, and the Battle for the Mass Affluent; Part 1

I define culture as the set of unspoken assumptions that guides behavior.  Whether it intends to or not, every company has a culture.  However, not every culture, even ones underpinned by values that make the world a better place, confers competitive advantage.  From the perspective of value creation, the question is not so much is […]

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[TREE – LendingTree] Lead Gen, Marketplaces, and Scale Economies

Less than four years after the its founding and two years after the nationwide launch of its lending exchange, LendingTree raised its first round of capital in the public markets.  A month later, in March 2000, the market began its brutal slide, creating two favorable conditions, collapsing advertising rates and declining mortgage rates, that LendingTree, […]

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[V – Visa; MA – Mastercard] Expanding the Rails, Part 2

Related Post: [V – Visa; MA – Mastercard] Expanding the Rails, Part 1 The most enduring companies, as the old bit goes, obsess over timeless universals: “paying for stuff should be easy, fast, and safe”.  Sizing a market helps to scope the problem that a product is meant to attack, but fixating on any given […]

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[TEAM – Atlassian] Collaboration and Competition

Atlassian’s birth and rise coincided with the adoption of the Agile software development framework in the early 2000s and the DevOps movement that grew out of Agile a decade later(1).  In a non-DevOps environment, software development and IT operations function as two segregated departments responding to local incentives: simplistically, developers attempt to release features into […]

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