(#36) China's boom is over; Disney top priorities and Akins' laws of spacecraft design
(#36) China's boom is over; Disney top priorities and Akins' laws of spacecraft design
The internet removed all the friction and in the end, everything became a commodity.
Being August, everyone spends more time outside and/or doing stuff 🏖️. That’s why this newsletter is shorter. I call it “onStrategy Air” 😎
Onto the update:
Strategy
Disney again
Before discussing again what Bob Iger should do and what not, I propose the following pyramid of interest for Disney:
That’s why:
They should sell the Linear networks (excl. ESPN)
Look for distribution and content (ie. partnership)
Focus on the experiences. In Q3 2023, Parks & Experiences brought 69% of the total profit (!)
Friction
The internet removed all the friction and in the end, everything became a commodity. Now, with less than 5 EUR/month you can listen to all the music that you want. So, how the artists make money? Mainly from tours. Tailor Swift’s tour will probably generate more than 1 billion, but Beyonce’s team came up with another monetization solution: “listening seat” for $226. I have a doubt about this, but let’s see. Taylor Swift, Beyonce.
Recycling
With the EV market growing by double digits is impossible not to see another industry booming: recycling batteries. Here is a YouTuber who made a video inside one of these companies. LINK
Fake Cheese
The famous Parmigiano Reggiano Consortium is sold now with chips to prove its authenticity. The total market is close to EUR 6 billion, where around 40% is fake. So, if you can if it’s happening to Louis Vuitton, probably it can happen to cheese too. Working around these challenges is how you survive and later thrive. LINK
Talent
How do you ensure the pipeline for the next leaders in your organization? Heineken shared their strategy with IMD. LINK
China’s boom is over
The Wall Street Journal had a long piece on the causes. The Economist too. But Noah Smith summarizes it even better. Here is a hint: real estate & government total involvement. WSJ, The Economist, Noah Smith
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Artificial Intelligence
McKinsey unveils its own generative AI tool for employees: Lilli
Here is what I wrote in my newsletter sent on the 23rd of May about Microsoft:
“Having an AI who can scan all your files, emails, and other apps and provide you answers and deliverables with some words it’s real magic. Everyone becomes a power user.” LINK
In the past, more information on the intranet meant less time to read it, understanding it & decision making. Now, with AI, everything can be days and hours faster. You just need to check if it makes sense what Lilli is generating. LILLI
Economics of AI
Gary Marcus on what are the economics of AI. LINK
Data
The Wall Street Journal has a long piece on how joint research will be affected by the ongoing dispute between China and the USA. LINK
Diversifying the beauty market. LINK
SpaceX valuation
SpaceX's leaked financials. In 2022 the company generated $ 4.6bn in revenue and its owners think that the company should be valued at $ 150 bn. LINK
Two ideas:
1/ Having a monopoly over Western spaceflight feels good.
2/ Some R&D output will be shared with Tesla and Solar City (ie. exoskeleton and the glass of the Cybertrack, etc.)
The tech job recession is over. LINK
Japan’s labor market
Four in 10 companies hired people aged 70 or more last year. Crazy! LINK
Outside Interest
Locals in Mallorca (Spain) are putting fake signs at beaches to scare tourists. LINK
Akins' 45 Laws of Spacecraft Design. LINK
I like #11:
“Sometimes, the fastest way to get to the end is to throw everything out and start over.”
Tyler Cowen interviews Paul Graham. If you don’t know Paul Graham you should look it up LINK
A day in the life of a Senior Manager at Amazon. LINK
Interesting newsletters 💡
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