Gennaro Cuofano's Blog, page 253
September 11, 2018
Alphabet “Other Bets”: In Search Of Google’s Hidden Gems
Under the hood of Google's 110 billion in revenues, it hides an accounting item called "other bets." That accounting item might hide the next big thing in technology and business. Yet, as Alphabet shows its "other bets" on its financials, we can try to understand where Google's hidden gem is and where the future of technology and business might be heading toward.
Enter Google "other bets"
Google other bets comprise a list of eight companies that span from life science to self-driving companies:
Access
Calico
CapitalG
GV
Nest
Verily
Waymo
X
Compared to the total Google's turnover, "other bets" represents about 1% of its overall revenues for 2017. However, if we imagined it as a spin-off of Google, that would be a startup worth looking at.
In particular, Google has invested so far in eight bets. Some of those bets might fail. Yet some others might not only grow exponentially in the next years. They might also transform Google's business model.
Why is this important at all? My argument is that behind the business model resides the way a company thinks. Even though a company is made of principles that keep it together. The commercial forces behind a business model are so strong that they eventually prevail over the rest. Google has been using a hidden revenue generation pattern and an advertising business model. No doubt this represents a cash cow for the organization. However, the future of Google might look quite different.
It is also important to remind that a business model is never just about monetization. In fact, for a business model to work in the long run, it has to embrace the company's principles.
As specified in Alphabet annual report, "throughout Alphabet, we are also using technology to try and solve big problems across many industries. Alphabet’s Other Bets are early-stage businesses, and our goal is for them to become thriving, successful businesses in the medium to long-term. To do this, we make sure we have a strong CEO to run each company while also rigorously handling capital allocation and working to make sure each business is executing well."
Not by chance, Google defined them as "bets." Early-Stage businesses naturally come with considerable uncertainty. The interesting part? Some of them are already generating revenue.
What is Access?
Access is the Alphabet subsidiary that runs Google Fiber, which offers super-high-speed broadband access over fiber optic cables, to new cities. Access provides Google Fiber in 12 US metropolitan areas and offers its Webpass wireless service in another eight.
[image error]
What is Calico?
Calico is a research and development company whose mission is to harness advanced technologies to increase our understanding of the biology that controls lifespan. In short, it
As explained on the Calico website, these are the guiding principles:
INNOVATION: We believe tackling aging and increasing healthspan can only succeed with cutting-edge science and transformative technology and that both are fueled by intellectual freedom and creativity
INTEGRITY: We expect everyone to be honest, ethical and trustworthy
COURAGE: We aim high, make tough decisions and take smart risks
ACCOUNTABILITY: We value taking personal responsibility and look inward first when things do not go well
COLLABORATION: We understand that working together can expand possibilities and capabilities
GENEROSITY OF SPIRIT: We strive to be kind and considerate, respect each other’s individuality and perspectives and graciously share both ideas and credit
What is CapitalG?
Capital G is the growth equity investment arm of Google that supports an investment portfolio of companies by providing tactical advice across key functional areas such as engineering, product, sales, and marketing. By working closely with growth stage companies, CapitalG argues that its pattern recognition enables it to draw learnings and help our portfolio scale effectively.
The portfolio of companies like Airbnb, Duolingo, Robinhood, Lyft and many others:
[image error]
What is GV?
GV or Google Ventures is the venture capital arm of Google, which invested in more than 300 companies that push the edge of what’s possible. From fields of life science, healthcare, artificial intelligence, robotics, transportation, cybersecurity, and agriculture.
It branches in five main areas:
Consumer: with companies like Uber, Medium, Nest and many others
Life science and health: with projects like 23andMe
Data and AI
Enterprises: slack, stripe, HubSpot
Robotics and hardware
What is Nest?
Nest mission is to create a set of smart home devices. Nest recently expanded its connected home product line by introducing the Nest Thermostat E and a new home security solution that includes the Nest Hello video doorbell, Nest Cam IQ outdoor security camera, and the Nest Secure alarm system.
It comprises products like:
Nest Learning Thermostat
Nest Thermostat E
Nest Temperature Sensor
Nest Protect
Nest Hello
Nest Cam Indoor
Nest Cam Outdoor
Nest Cam IQ indoor
Nest Cam IQ outdoor
Nest Secure
Nest × Yale Lock
What is Verily?
Verily develops tools to collect and organize health data, then creating interventions and platforms that put insights derived from that health data to use for more holistic care management. With three guiding product design principles: start with the user, simplify care, and lead on security and privacy.
The company monetizes by selling its R&D services. Verily has also made significant progress on critical programs, like the launch of its Project Baseline study with Duke University and Stanford Medicine, and received an $800 million investment in 2017 from Temasek to accelerate its strategic programs.
What is Waymo?
Waymo began as the Google self-driving car project in 2009. Waymo is now an independent self-driving technology company with a mission to make it safe and secure for everyone to get around—without the need for anyone in the driver’s seat.
Waymo continues to progress the development and testing of its technology and now has a fleet of vehicles in Phoenix, Arizona, driving without a person behind the wheel.
What is X?
X is the Google's arm which is aimed at solving hard problems by creating new radical technologies. Some of the projects that came our from X comprise Verily, one of Google's "other bets." Other projects consisted of delivery drones, internet balloons, and cybersecurity. A few other projects in development are smart glasses, free space optics, and learning robots.
As explained on X website:
Google founders Larry Page and Sergey Brin always believed in investing some of the company’s resources in hard, long-term problems. In 2010, a new division forms to work on moonshots: sci-fi sounding technologies that aim to make the world a radically better place.
Inside Google other bets financials
[image error]
Other Bets revenues consist primarily of revenues and sales from:
Internet and TV services;
Licensing and R&D services;
and Nest branded hardware.
[image error]
Other Bets is a combination of multiple operating segments that are not individually material. As we've seen Other Bets includes businesses such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X.
Revenues for Other Bets are derived primarily through the sales of internet and TV services through Fiber, sales of Nest products and services, and licensing and R&D services through Verily.
[image error]
Regarding operating expenses, $76.7 billion of went over Google main operations; While $4.5 billion in operating expenses went over other bets.
That isn't a cheap bet for Google, which is sustaining those other bets with the money coming primarily from its advertising networks.
An inside look at the overall Google business model
[image error]
As of 2017, Google still got 86% of its revenues from advertising. However, it is important to notice how other areas of the company are growing pretty quickly. For instance, the other part of the business which focuses on App purchases through the Google Play store, the Google Cloud offering, and the Hardware product was in 2017 a $14 billion a year business. Compared to 2015 when it represented just $7 billion.
What instead will be the role of the other bets?
Summary and conclusions: What if one of the other bets will be the next hit in tech and business?
Behind Google's primary business model hides an accounting item called "other bets." Those are primarily eight companies, some of which are already generating over a billion dollar in revenues, almost three times over of what they made in 2015. The other bets already generating revenues are mainly Google Fiber (Access), Verily and Nest.
However, in 2017, Google spent $4.5 billion to keep those companies going. That tells us we can expect some of those bets becoming a huge hit in the coming years. Which one will that be? Only time will tell!
Handpicked related articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
The post Alphabet “Other Bets”: In Search Of Google’s Hidden Gems appeared first on FourWeekMBA.
September 9, 2018
Marketing vs. Sales: How to Use Sales Processes to Grow Your Business
In this article, I want to focus on drawing a clear line between sales and marketing. In fact, in some cases, marketing and sales work together, and they are the same thing. Yet in many other cases, you need to keep in mind this distinction if you want to build a successful business. Thus, we'll see why sales and distribution are critical, how it is different from marketing and how it can also be used as a marketing enabler to leverage for the branding of any company.
Beware, a good product doesn't mean a successful company
As pointed out by Peter Levine, a general partner at the venture capital firm Andreessen Horowitz:
As a former software engineer and CEO, I used to hold the “engineer-centric” view that sales is not a critical function in an organization. I believed that product excellence and market fit obviated the need for a formal sales function: Build a great product, and customers will come.
That view was short-sighted, to say the least. The technology companies that are able to both build great products and integrate a strong sales function are the ones that succeed, whether consumer or enterprise — from Microsoft to Salesforce and yes, even Apple and Facebook. You may not hear about it, but all the world-class companies have a strong sales force.
This is critical to remember especially for founders that often have a technical background. As tech companies are gaining momentum, more and more often we see founders that are also engineers, developers or programmers. That technical background is critical as it allows them to develop applications that might improve 10x over competitors. Think of Brin and Page, Google's founders. When they started to pitch their new search engine based on PageRank, they knew it was 10x better than any other search engine on the market.
However, it was when they started to think like businesspeople and stopped thinking as academics that the business took off. They understood the importance of distribution. And it is important to remark that even though Google initially was already used by millions of people, but very far from becoming the tech giant we know today.
In a story told by John Doerr, a venture capitalist and one of the first investors in Google, in his book "Measure What Matters." When he met the young Larry Page, he knew that even though Google had entered the market pretty late (Google was the eighteenth search engine to enter the market), it was a product, 10x better than its competitors. Yet John Doerr's future valuation of the company (the maximum growth it could achieve) was about a billion in market capitalization.
However, when he interviewed Page, that young entrepreneur surprised him by saying they would reach instead of a ten billion dollars revenue mark! Which according to Page made the company worth around a hundred billion dollars.
At the time of this writing, Google is worth over eight hundred billion dollars. What made Google successful?
Several factors, comprising pure luck. But of course, an incredible execution is what mattered the most. When you have a company that is growing so fast the most challenging thing is to make sure it will not implode.
In short, putting together a sales process that works it means to keep well in mind the difference between marketing and sales.
At the same time, it is also critical to remind that sales are primarily about the bottom line, but it can also be used a propeller for a company's brand. The Google's AOL deal is one of those cases.
Distribution can be a branding hack
You might think that Google was great at marketing itself, and in a way it was. Yet, what propelled its growth wasn't just the marketing side, but rather the distribution side. Many associates sales and distribution as something purely connected to the bottom line.
While sales and distributions focus on the bottom line, they can also be leveraged to build up a strong brand. Think of when Google got the AOL deal, by taking it away from its main competitor at the time (Overture). Well, the distribution agreement with AOL, not only was a sales strategy that guaranteed an explosive growth.
It also represented a massive branding campaign. One that with marketing alone would have taken years to build. In other words, Google used an already established brand to grow its business, and it also worked as a propeller for its brand. As suggested by Google Ngram, by 2004 the term "Googled" had already become a cult!
[image error]
Therefore, the primary role of sales and distribution should be to look at the bottom line. Yet, once that role is resolved, it can also be leveraged as a powerful branding tool.
You might think that for a consumer product company like Google, which offers a set of free tools to masses has been mainly driven by marketing. However, if we look at the business part of it, what brings revenues to the company is the advertising network where millions of small and medium businesses and enterprises spend their marketing budget. In this scenario, you can understand how sales and distribution become critical.
Some practical suggestions for your sales processes
Peter Levine, suggests a few practical ways to have a sales process within your company, as a CEO:
Have a weekly meeting with your sales VP where you review the pipeline and forecast, have the VP sales educate you on what he or she is doing, and ask questions
Ask what you can do to help your sales VP: Can I help with closing a deal, visiting a customer, or rallying the troops?
Spend time together! In fact, there’s no better way to build morale with your sales team than to do so with them and your customer
Hold your sales VP accountable by setting clear objectives with quantitative (not qualitative!) agreed-upon metrics; you should also know the quotas and productivity of each sales person
Be sure to interview the first sales hires to ensure alignment with your head of sales as well as with organizational culture and values
Encourage engineers to spend time with sales, and sales to spend time with engineers; the more the two organizations interact solving real product and customer issues, the less foreign each will be to one another and the better your product will be
How much to spend on Marketing vs. Sales? It's all about the product and the target customer
When it comes to marketing vs. sales, it is critical to start the assessment from your target customer. In general, we have three kinds of customers:
consumer
small and medium business
enterprise
The idea is the more you move from consumers to enterprise clients, the more you'll need a sales force able to manage complex sales. However, imagine the case you sell a simple product, which is worth $20, would it make sense to have a dedicated sales force? It might not. This would be too expensive and not scalable.
In other words, with a less expensive product that is targeting consumers, marketing will be a critical aspect. Where, instead of with an expensive product, which focuses more small and medium businesses and enterprise clients, sales will become the most relevant aspect of your business.
Of course, this is a simplification. Yet it is a good starting point to understand and trace a line between marketing and sales. Take the case of a freemium business model. In that case, the investment in sales would be minimal if not none as you'll be leveraging on free product features as marketing investment for the company.
While in a subscription business model that targets mainly enterprise clients, the sales force will solve a critical role.
Summary and conclusions
In this article, we've seen the main difference between sales and marketing. But also how sales and distribution can be used to hack the branding of an organization - where marketing would take years to build a strong brand.
A single distribution deal can generate revenues and visibility for the business. We've also seen how in some cases marketing might be easily confused with sales. Take the case of Google, where it has a free product targeting consumers. In that case, you might be fooled to think Google is all about branding.
Yet if we look at its beginning, Google main ability has been to create a powerful distribution strategy by closing the right deals. That distribution strategy turned into a branding hack, which turned the company into a cult, by 2004.
We've also seen how a few actions can have a large impact on a company's future growth, by establishing some practical actions (like weekly sales meeting, accountability, and clear quotas).
A last critical aspect you can understand how to create the right sales and marketing mix by looking at two things, the kind of product you sell and what customer it targets. The more it will be an enterprise customer the more the sales processes will become important. The more we move toward an inexpensive product thought mainly for consumers, the more marketing will lead the game.
Handpicked related articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
The post Marketing vs. Sales: How to Use Sales Processes to Grow Your Business appeared first on FourWeekMBA.
September 5, 2018
Luxottica Vertically Integrated Business Model In A Nutshell
With €9 billion in net sales and net income for over a billion in 2017, Luxottica had about 85,000 employees in 2018. A vertically integrated organization, founded in 1961, when Leonardo Del Vecchio, an Italian entrepreneur, incorporated it. Luxottica grew from a small shop that produced components, to a prominent company in the eyewear industry. , Leonardo Del Vecchio is listed as the 34th wealthiest person on earth, with a personal wealth of over $23 billion.
Luxottica origin story
It all started in 1961, when Leonardo Del Vecchio, an Italian entrepreneur, incorporated Luxottica. Luxottica didn’t begin with great ambitions. It was a small shop that produced components and semi-finished products for the optical industry.
Yet by the 1970s Luxottica had become an integrated manufacturer able to produce the finished pair of glasses. The transition between contract manufacturer to a producer can be traced to 1971 when Luxottica first collection was presented in Milan.
It was starting in 1974 that the company started a strategy of vertical integration. In short, Luxottica has begun to control the whole supply chain. First, by distributing frames directly to retailers.
Then, in the 1980s Luxottica started the international expansion by acquiring independent distributors. As eyewear became more and more, a fashion object brought Luxottica to acquire Sferoflex, which allowed the company to improve the design of its products, thus enhanced its brand.
The growth of Luxottica as a brand has walked hand in hand with its commercial expansion. In fact, in 1988 Luxottica entered in a licensing agreement with Giorgio Armani. It then continued those licensing agreements with famous luxury brands, like Bulgari, Chanel, Prada and many others.
Luxottica also kept acquiring other brands, comprising Oakey (the California-based eyewear company), which of the time of the acquisition had over 160 stores. To strengthen its vertically integrated business, Luxottica also acquired several chains Sunglass Hut (2001), OPSM Group (2003), and Cole National (2004).
In 2016, Luxottica completed the acquisition of Salmoiraghi & Viganò, in which it has held a minority stake since 2012.
At the time of this writing, Leonardo Del Vecchio is listed as the 34th wealthiest person on earth, after Michael Dell, with a personal wealth of over $23 billion.
Luxottica business model
With €9 billion in net sales and net income for over a billion, Luxottica had about 85,000 employees in 2018. A vertically integrated organization with a wide wholesale organization and a retail network located primarily in four regions:
North America,
Latin America,
Asia-Pacific
and Western Europe.
The vertical integration of Luxottica hasn’t happened overnight. Instead, it represented the fulfilling of a vision from its founder, Leonardo Del Vecchio. As he started to produce entire frames, rather than just components.
Thus, vertical integration of manufacturing was gradually accompanied by the expansion of distribution, starting with wholesale and later on, with retail and a critical presence in the high value-added business of lens finishing.
[image error]
One of the critical aspects of vertical integration is the ability of the company executing it to control the quality of each step of the supply chain. Thus, have total control over the final offering, pricing, and product development.
Those high standards is what Luxottica calls “Made in Luxottica” standard. One of the issues of a fragmented supply chain is the inability to truly understand customers, especially if the company is not controlling the retail side of its distribution.
On the other hand, if a company is too focused on the retail side, it might be tough to lower the cost of its materials, while keeping its quality pretty high.
Instead, a vertically integrated business model allows keeping control of all the aspects, from product development to retail. This, in turn, also makes Luxottica aware of all its elements, by forming a 360 degrees view of its business.
Luxottica operations
the Group has two primary operating segments:
• Wholesale: with the manufacturing and wholesale distribution;
• Retail: mainly focused on distribution to customers
[image error]
In 2017, Retail represented 62% of Luxottica revenues, while Wholesale represented 38% of net sales. If we look at the geographical areas, the central regions are:
North America, which represented 57% of Luxottica revenues in 2017
Europe represented 21% of Luxottica revenues in 2017
Asia – Pacific represented 13% of the revenues in 2017
Latin America represented 7% of the revenues in 2017
Luxottica financials
[image error]
In 2017, Luxottica generated more than €9 billion in revenues, compared to €7.3 billion in 2013.
[image error]
The operating income has also improved from over a billion euros in 2013, to €1.3 billion in 2017.
[image error]
The net income almost doubled since 2013. From 545 million euros to over a billion in 2017.
[image error]
Luxottica manufacturing and distribution
Product design, development, and manufacturing for frames take place in several facilities:
six production facilities in Italy,
three factories in China,
one in Brazil
and one facility in the United States (mainly devoted to sports and performance eyewear)
The distribution wholesale distribution covers more than 150 countries with about 50 commercial subsidiaries with direct operations in key markets
With its manufacturing and distribution strategy Luxottica has managed to dominate several regions:
Optical retail business in North America with its LensCrafters and Pearle Vision brands,
Australia and New Zealand with the OPSM and Laubman & Pank brands,
China with the LensCrafters brand,
Italy with the Salmoiraghi & Viganò brand
Latin America with the GMO and Óticas Carol brands
Luxottica has also built over the years an e-commerce platform that comprises Ray-Ban.com, Oakley.com, Persol.com, Vogue-Eyewear.com, SunglassHut.com, and Glasses.com
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
The post Luxottica Vertically Integrated Business Model In A Nutshell appeared first on FourWeekMBA.
September 4, 2018
Who Owns Amazon? The Trillion Dollar Jeff Bezos’ Empire
With 484,607,953 shares of common stock outstanding as of February 20, 2018, Amazon major individual investor is Jeff Bezos, with 16.3% of the company. That makes Jeff Bezos, the wealthiest person on earth. Other institutional investors, like The Vanguard Group and BlackRock, have the 5.8% and the 5.1% respectively. For the first time in its history, on September 4th, 2018 Amazon passed the trillion dollar market capitalization.
[image error]
Amazon customer obsession
As Jeff Bezos said in its first shareholders’ letter of 1997:
It’s All About the Long Term
We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to extend and solidify our current market leadership position. The stronger our market leadership, the more powerful our economic model. Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital.
The key metrics Amazon is using to measure its long-term growth are:
customer and revenue growth,
the degree to which our customers continue to purchase from Amazon on a repeat basis,
and the strength of our brand
What has driven Amazon along this massive growth is what Jeff Bezos calls “customer obsession.”
This customer obsession has transformed into a trillion dollar company, with Jeff Bezos seeing his wealth turning at over a hundred sixty billion dollars!
Amazon business milestones
In 2017, Amazon had reached a few critical milestones:
Prime – 13 years post-launch, it had exceeded 100 million paid Prime members globally
AWS – Amazon Web Services, a $20 billion revenue run rate business, which just a few years before didn’t even exist as a line of business
Marketplace – In 2017, for the first time in Amazon history, more than half of the units sold on Amazon worldwide were from third-party sellers, including small and medium-sized businesses (SMBs)
Alexa – and Alexa-enabled devices among the best-selling items across all of Amazon
Amazon devices – 2017 was the best year for hardware sales. With tens of millions of Echo devices, and Echo Dot and Fire TV Stick with Alexa were the best-selling products across all of Amazon – across all categories and all manufacturers
Prime Video award-winning Prime Originals, like The Marvelous Mrs. Maisel, winner of two Critics’ Choice Awards and two Golden Globes, and the Oscar-nominated movie The Big Sick. Those help Amazon sell more shoes
Amazon Music – Amazon Music continues to grow fast and now has tens of millions of paid customers
Fashion – Amazon has become the destination for tens of millions of customers to shop for fashion
Whole Foods – integrated more and more into Amazon overall strategy. Amazon also begun the technical work needed to recognize Prime members at the point of sale and look forward to offering more Prime benefits to Whole Foods shoppers once that work is completed
Amazon Go – Amazon Go, a new kind of store with no checkout required, it opened to the public in January in Seattle
Amazon compensations
[image error]
Amazon’s compensations comprise:
salary
stock awards
other compensations
In 2017 Jeff Bezos earned almost $1.7, mostly made of other compensations. Jeff Bezos base salary was $81,840.
Amazon humble beginnings: a simple bookstore
As specified in the 1997 shareholders letter signed by Jeff Bezos:
From the beginning, our focus has been on offering our customers compelling value. We realized that the Web was, and still is, the World Wide Wait. Therefore, we set out to offer customers something they simply could not get any other way, and began serving them with books. We brought them much more selection than was possible in a physical store (our store would now occupy 6 football fields), and presented it in a useful, easy- to-search, and easy-to-browse format in a store open 365 days a year, 24 hours a day.
Amazon didn’t seek to expand right away and become what we like to call today “the everything store.” Instead, it started as a bookstore. It conquered that niche, then expanded to monopolize and disrupt other niches; Until it became so big to disrupt entire industries.
Other hand-picked articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
The post Who Owns Amazon? The Trillion Dollar Jeff Bezos’ Empire appeared first on FourWeekMBA.
September 3, 2018
The Trillion Dollar Company: Apple Business Model In A Nutshell
With a market capitalization of over a trillion dollar at the time of this writing, Apple is among, if not the most valuable brand in the world.
[image error]
From an analysis done by howmuch when Apple didn’t reach yet the trillion-dollar valuation, it was already not comparable to any other brand in the world:
[image error]
While Apple has already passed the one trillion market cap.
Amazon is very close to it:
[image error]
I wonder when it will be the turn of Google!
[image error]
If we take the US GDP figure for 2017 at over 19 trillion, this means Apple represents 5% of the total economic output of the wealthiest country on earth.
If we take Apple, Amazon and Google market cap combined (over $2.8 billion), they represent almost 15% of the total economic output for the US.
Of course, nothing compared to the 1930s, when J.D. Rockefeller personal wealth represented about 1.5% of the US economic output. Yet, there is no doubt that for a few the Internet has represented the new oil.
As large political organizations (I believe states and nations will not be able anymore to slow down those tech giants) like the EU or the US federal government will regulate more and more, the so far not so regulated web, those companies might shrink in size.
However, one might also argue that instead, we live in the era of tech giant corporations, which are political organizations for their own sake (they influence the lives of billions of people). What if they keep growing?
The Apple business model
Apple’s business model is mainly based on the sales of tech products. However, it cannot be understood from that standpoint alone. Apple is both software and hardware, which is also what made it successful. No doubt the iPhone is an icon of our days. Yet, the iPhone is also a device that works pretty well thanks to its software.
Apple’s products
Three main products represent the line of Apple:
iPhone
iPad
Mac
Apple’s operating systems
Those products are run by Apple Operating systems:
iOS
macOS
watchOS
tvOS
Apple-related services
And supported by a set of related services:
Digital Content and Services
iCloud
AppleCare
Apple Pay
Other bets and products
Apple has over the years bet on several new products. It is also diversifying its products portfolio with:
Apple TV
Apple Watch
iPod touch
Apple’s Distribution strategy
The Company sells its products and resells third-party products in most of its major markets directly to consumers and small and mid-sized businesses through its retail and online stores and its direct sales force. The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and value-added resellers. During 2017, the Company’s net sales through its direct and indirect distribution channels accounted for 28% and 72%, respectively, of total net sales.
Other hand-picked articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
The post The Trillion Dollar Company: Apple Business Model In A Nutshell appeared first on FourWeekMBA.
September 2, 2018
Apple vs. Google Business Models In A Nutshell
Following a comparison between Apple and Google business models that looks at the financial metrics of both companies to understand how they differ from the business strategy standpoint.
Apple business model in numbers
Apple business model is based on the sales of its products. In fact, as of 2017, the iPhone is the most sold product, which adds up to over sixty percent of the company's overall revenues. The strength of the iPhone also derives from the ability of Apple to own the whole supply chain. Although this strategy has worked so well, it is also quite risky. In fact, if Apple's sales will slow-down in the future this would trigger a domino effect too on its business model. However, things like services and other products also increased. By looking at both revenues and operating income, the Americas (North and South America) represents the most profitable segment for the company. In case Apple loses its market dominance in the future would pose a severe financial risk to the company's success.
Google business model in numbers
A well-designed business model has to create value for the stakeholders and not just for the shareholders. Google allows each day for billions of people to find the answers they need. Businesses can enhance their revenues through AdWords by tracking their spending, conversion, and opportunities. Content creators can easily monetize their content by allowing Google to show targeted ads within their “web properties.” In fact, as of 2017 over 85% of Google's revenue come from its advertising networks. Over 12% of Google's revenues in 2017 comes from other sources, such as Google Play and Pixel. While little over 1% comes from other bets, which are not tied to the primary business model (like Access, Calico, and others).
Other hand-picked articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained
The post Apple vs. Google Business Models In A Nutshell appeared first on FourWeekMBA.
September 1, 2018
Who Owns Facebook? Mark Zuckerberg Tech Empire
Mark Zuckerberg is the principal shareholder of the company. Not only he retains ownership but also control. Facebook, like Google, has issued two kinds of common stocks, Class A and Class B. Where the holders of Class B common stocks are entitled to ten votes per share, and holders of our Class A common stocks are entitled to one vote per share. Mark Zuckerberg has a total voting power of 59.9%. That makes Mark Zuckerberg both the main owner and the one in control of the company’s future.
[image error]
Source: Facebook Proxy 2018
Handpicked related content:
Who owns Google?
Who owns Apple?
Who owns Coca-Cola?
How Amazon Makes Money: Amazon Business Model in a Nutshell
The Power of Google Business Model in a Nutshell
Starbucks Business Model In A Nutshell
The post Who Owns Facebook? Mark Zuckerberg Tech Empire appeared first on FourWeekMBA.
Who Owns Fox News? The Murdoch Family Empire In A Nutshell
Fox News is owned by 21st Century Fox. That is a global video brand comprising FOX, National Geographic, FOX News, FOX Sports, FX, Star India, Hulu, and Sky, owned by the Murdock family, which retains most of the controlling power. On June 2018, 21st Century Fox has accepted Disney acquisition of its assets for $71.3 billion, for the film studio and TV assets. Yet a lawsuit from Fox shareholders has halted the acquisition process.
What is 21st Century Fox?
As explained in its 2017 annual report:
Twenty-First Century Fox, Inc. (formerly known as News Corporation), a Delaware corporation, is a diversified global media and entertainment company with operations in the following segments:
(i) Cable Network Programming; FOX News and Fox Business Network. FOX News owns and operates the FOX News Channel, FSN. Fox Sports Net, Inc. (“FSN, Inc.”) is the largest regional sports network (“RSN”) programmer in the United States, FS1. FS1 is a multi-sport national video programming network, FS2. FS2 is a multi-sport national video programming network featuring live events from UFC and NASCAR, Big Ten Network, National Geographic Partners (The National Geographic Channels,
(ii) Television;
Fox Television Stations, LLC (“Fox Television Stations”) owns and operates 28 full power stations, including stations located in nine of the top ten largest designated market areas (“DMAs”). Fox Television Stations owns and operates duopolies in 11 DMAs, including the three largest DMAs, New York, Los Angeles and Chicago.
[image error]
Apparently, Fox Television Stations can reach up to 37.3% of US households.
MyNetworkTV The programming distribution service, Master Distribution Service, Inc. (branded as MyNetworkTV), distributes two hours per night, Monday through Friday, of off-network programming from Twentieth Television and other third party syndicators to its licensee stations. As of June 30, 2017, MyNetworkTV had license and delivery agreements covering 191 stations, including 10 stations owned and operated by the Company, reaching approximately 98% of U.S. households.
(iii) Filmed Entertainment; Motion Picture Production and Distribution One of the world’s largest producers and distributors of motion pictures, Twentieth Century Fox Film (“TCFF”) produces, acquires and distributes motion pictures throughout the world under a variety of arrangements.
And (iv) Other, Corporate and Eliminations.
The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations.
Century 21st equity interests
Century 21st also holds equity interest in:
Sky: The Company holds an approximate 39% interest in Sky. Sky’s ordinary shares are listed on the London Stock Exchange under the symbol “SKY”. Sky is the UK’s leading entertainment and communications provider, operating the most comprehensive multichannel, multi-platform pay television service in the UK, Ireland, Germany, Austria and Italy.
Hulu: The Company has an approximate 30% equity interest in Hulu, LLC (“Hulu”) which operates subscription-based services that offer: (i) both linear and on-demand video programming and (ii) on-demand only video programming
Endemol Shine Group: The Company and funds managed by Apollo Global Management, LLC (“Apollo”) formed a joint venture in December 2014 to which the Company contributed its interests in Shine Group and cash, comprising an aggregate carrying value of approximately $830 million. The Company and Apollo have an equal ownership interest in the joint venture. Endemol Shine Group, a global multi-platform content provider, has creative operations across all the world’s major markets, with a diverse portfolio, both scripted and non-scripted, coupled with digital, gaming, and distribution operations.
Tata Sky: The Company holds an approximate 20% direct interest and an approximate 10% indirect economic interest in Tata Sky Limited which owns and operates a DTH platform in India.
Century 21st revenue breakdown
[image error]
– The Company’s revenues increased 4% for fiscal 2017, as compared to fiscal 2016, primarily due to higher affiliate fee, advertising and other revenues partially offset by lower content revenue. The increase in affiliate fee revenue was primarily attributable to higher average rates per subscriber at the domestic channels. The increase in advertising revenue was primarily due to the broadcast of Super Bowl LI in February 2017, higher ratings and pricing at Fox News Channel (“Fox News”) and the broadcast of the Major League Baseball (“MLB”) World Series, which benefited from higher ratings and two additional games. Partially offsetting these increases in advertising revenue were lower entertainment advertising revenue at both FOX and the Company’s television stations due to lower entertainment ratings at FOX as compared to fiscal 2016, which included the final season of American Idol. The increase in other revenues was primarily due to the acquisition of the publishing, travel and certain other businesses (the “NGS Media Business”) in November 2015 from the National Geographic Society (See Note 3 – Acquisitions, Disposals and Other Transactions to the accompanying Consolidated Financial Statements of Twenty-First Century Fox under the heading “National Geographic Partners”). The decrease in content revenue was primarily attributable to lower worldwide theatrical and home entertainment revenues from motion pictures partially offset by higher subscription video-on-demand (“SVOD”) and network and syndication revenues. The 4% revenue increase is net of a decrease of approximately $220 million due to the strengthening of the U.S. dollar against local currencies for fiscal 2017, as compared to fiscal 2016.
[image error]
[image error]
Who owns Century 21st Fox?
According to the proxy statement dated November 15th, 2017:
[image error]
The Murdoch family via their trust and Rupert Murdoch have most of the voting power.
We can also look at the compensation for the top management:
[image error]
The total compensations comprise a base salary, stock awards, and non-equity incentive plans. In 2017, Rupert Murdock earned more than $29 million.
Handpicked related content:
Who owns Google?
Who owns Apple?
How Amazon Makes Money: Amazon Business Model in a Nutshell
The Power of Google Business Model in a Nutshell
Starbucks Business Model In A Nutshell
The post Who Owns Fox News? The Murdoch Family Empire In A Nutshell appeared first on FourWeekMBA.
ALDI Business Model In A Nutshell
By the end of World War II, Theo and Karl Albrecht took over the small grocery store of their mother to make it become one of the most successful discount supermarket chains in the world. ALDI operates according to the motto “the best quality at the lowest price.” With combined sales of 53 billion euros in 2010, ALDI North and South have separate operations. ALDI founders are among the wealthiest businessmen in Germany with a personal wealth of over 33 billion euros, combined.
The ALDI origin story: the low-cost business model
In 1913, Frau Anna opened a small grocery store in the suburb of Essen, Germany. By the end of World War II, Karl and Theo, Anna’s soon took over their mother’s business after, and run it with the motto “the best quality at the lowest price.” That motto would become the company vision for decades to come.
By 1948, opening the two brothers had opened four stores in the local area. They managed to keep prices extremely low by only stocking non-perishable items and by selecting the things that were selling the most from the shelves while removing the slow-sellers.
By that time Theo and Karl Albrecht decided focused on developing a chain of small stores. In 1954, the brothers opened Germany’s first self-service store. By 1960, Theo and Karl Albrecht owned 300 stores with an annual turnover of millions of dollars.
The split over a cigarette
In the 1950s the brothers split the chain into two separate groups, presumably over a dispute about whether to sell cigarettes. Theo headed Albrecht-Diskont Nord, which sold cigarette. Karl instead became the CEO of Albrecht-Diskont Süd, which did not sell cigarettes.
Albrecht-Diskont store became ALDI
In 1962, despite the disagreement kept working together and changed the name of the. group to Aldi Nord and Aldi Süd. The taken from the first two letters of Albrecht and Diskont. The two businesses became financially and legally separate in 1966. By this time, there were 200 Aldi Süd stores in Germany.
The Trader’s Joes acquisition by Aldi Nord
In 1979, a trust headed by Aldi Nord’s Theo Albrecht bought the chain Trader Joe’s, which now operates 475 stores in the US.
How does Aldi keep its prices low?
Aldi uses a set of strategies to keep its prices low while maintaining a high quality:
Aldi lists 1,300 items in each store every day, which is very limited compared to other supermarket chains. That keeps waste to a minimum
Aldi also stocks a lot of their own brands, with some becoming successful, which lowers the sales and marketing cost
90% of the products are Aldi-exclusive brands, which makes it easy for the chain to market them, with more flexibility on. price and distribution
ALDI in a way retains a. self-service attitude, where customers bring their own bags or can buy reusable bags at the store. Also, they must bag their own groceries. This lower the costs of serving clients for the company compared to other chains
Limiting store hours and keeping their stores small (about 15,000-20,000 square feet)
ALDI North in numbers
[image error]
Source: cr-aldinord.com
As reported by ALDI North official report:
The ALDI North Group is represented in nine European countries with companies as independent legal entities. In Germany, the ALDI North Group as a group of subsidiaries is comprised of legally independent regional companies, in each case with the legal form of a GmbH & Co. KG, which means that the managing directors of the independent regional companies have equal status in casting votes at regular board meetings. ALDI Einkauf GmbH & Co. oHG is engaged by these regional companies to provide various services. This company is also the licensor of the ALDI brand for the legally independent foreign companies of the ALDI North Group operating in the ALDI North Group countries. This arrangement ensures a uniform market profile.
The motto remains “offering high-quality groceries at every day low prices.”
[image error]
In 2017 ALDI North Group recorded sales for 23.4 billion euros, compared to 21.2 billion in 2016.
[image error]
ALDI North has more than 69,000 employees.
[image error]
One of the secret for ALDI to keep its price low is the own brand’s portfolio, which as. you can see spans anywhere from the 73.6% in Poland, up to 96.1% in Belgium/Luxembourg.
ALDI North corporate responsibility program
ALDI North follows a corporate responsibility program, which comprise five main areas:
Employee appreciation
Supply chain responsibility
Resource conservation
Social commitment
Dialogue promotion
[image error]
ALDI’s founders are among the wealthiest businessmen in Germany
As reported on thelocal.de the top ten richest Germans are:
1. Karl Albrecht and family (Aldi Süd) €17.20 billion
2. Berthold and Theo Albrecht junior and family (Aldi Nord) €16 billion
3. Dieter Schwarz (Lidl, Kaufland) €11.50 billion
4. Otto family (Otto mail order) €9.00 billion
5. Susanne Klatten (BMW, Altana) €8.90 billion
6. Reimann family (Reckitt Benckiser, Coty) €8 billion
7. Reinhold family Würth (Würth) €7.20 billion
8. Günter and Daniela Herz (Germanischer Lloyd) €7 billion
8. Oetker family (Oetker) €7 billion
10. Rethmann family (Remondis) €6 billion
This makes the total personal wealth from ALDI founders at over 33 billion euros (about $38 billion at current rate).
ALDI as a private company
Aldi might well be among the largest private companies in the world. As a private company, ALDI has total control over its strategy without focusing on quarters results. Also, ALDI can keep its number relatively secret from its competition.
Other hand-picked articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
The post ALDI Business Model In A Nutshell appeared first on FourWeekMBA.
August 31, 2018
How Does Microsoft Make Money? Microsoft Business Model In A Nutshell
Microsoft is of the largest tech giants, which in 2017 made $89.9 billion in revenues. While Microsoft Office remains the most successful product. Other parts of the business related to advertising, with the Bing search engine, has been growing fast in the last couple of years. Also, the acquisition of LinkedIn has allowed Microsoft to enter the social media market. As a dominant tech company, Microsoft tries to keep innovating and acquiring companies that allow it to enter new markets, quickly.
Micro-soft, the name
When Bill Gates and Paul Allen needed to pick a name, Paul Allen reported in his memoir “We considered Allen & Gates, but it sounded too much like a law firm. My next idea: Micro-Soft, for microprocessors and software. While the typography would be in flux over the next year or so (including a brief transition as Micro Soft), we both knew instantly that the name was right. Micro-Soft was simple and straightforward. It conveyed just what we were about.“
So how did Bill Gates end up with the majority of the company? Still according to Paul Allen memoir “From the inception of Microsoft, Bill insisted he got a 60-40, then 64-36 share of the money.”
While Paul Allen accepted – for some reasons – the 60-40 deal, so that more shares would go to Bill Gates – mostly on the basis that Bill Gates had contributed more on the code – Bill Gates tried again to get hold of more shares of Microsoft. That attempt though wasn’t successful.
In a few years, Microsoft would become the dominant tech company in the world.
It is important to remark this is the side of the story told by Paul Allen, seldom mentioned Microsoft co-founder. The accounts from Paul Allen reflect his perspectives on Microsoft in its first years.
Who owns Microsoft?
[image error]
While the three principal individual investors are Bill Gates, Mason Morfit, Satya Nadella and a few others among the board members (this list does not comprise those individual investors with a stake lower than 5% of the company if they are not board members).
[image error]
The most prominent institutional investors are The Vanguard Group and Blackrock.
What is the Microsoft pay mix?
Microsoft has a pay based on three main aspects:
base salary
cash incentives
and equity
[image error]
To create a proper compensation, Microsoft looks at a group of peers that comprise:
Peer group: • Alphabet • Amazon • Apple • Cisco Systems • Facebook • Hewlett-Packard • IBM • Intel • Oracle • Qualcomm • AT&T • Chevron • Coca-Cola • Comcast • ExxonMobil • General Electric • Johnson & Johnson • Merck • PepsiCo • Pfizer • Procter & Gamble • Verizon • Wal-Mart • Walt Disney
Based on that Microsoft compensation comprise 73.2% of base salary, followed by 19.2% of cash incentives, and 7.6% of equity.
What are Microsoft Segments?
Microsoft segments can be broken down into four main types:
Productivity and business processes
Productivity and Business Processes segment consists of products and services in the portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:
Office Commercial, including Office 365 subscriptions and Office licensed on-premises, comprising Office, Exchange, SharePoint, Skype for Business, and Microsoft Teams, and related Client Access Licenses (“CALs”).
Office Consumer, including Office 365 subscriptions and Office licensed on-premises, and Office Consumer Services, including Skype, Outlook.com, and OneDrive.
LinkedIn, including Talent Solutions, Marketing Solutions, and Premium Subscriptions.
Dynamics business solutions, including Dynamics ERP on-premises, Dynamics CRM on-premises, and Dynamics 365, a set of cloud-based applications across ERP and CRM.
Intelligent cloud
Productivity and Business Processes segment consists of products and services in the portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:
Server products and cloud services, including Microsoft SQL Server, Windows Server, Visual Studio, System Center, and related CALs, and Azure.
Enterprise Services, including Premier Support Services and Microsoft Consulting Services.
More personal computing
More Personal Computing segment consists of products and services geared towards harmonizing the interests of end users, developers, and IT professionals across all devices. This segment primarily comprises:
Windows, including Windows OEM licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; Windows IoT; and MSN display advertising.
Devices, including Microsoft Surface, PC accessories, and other intelligent devices.
Gaming, including Xbox hardware and Xbox software and services, comprising Xbox Live transactions, subscriptions, and advertising (“Xbox Live”), video games, and third-party video game royalties.
Search advertising.
Corporate and other
Microsoft develops most of its products and services internally through the following engineering groups.
Office Product Group focuses on Microsoft business across productivity, communications, education, and other information applications and services.
Artificial Intelligence and Research, focuses on Microsoft AI development and other forward-looking research and development efforts spanning infrastructure, services, applications, and search.
Cloud and Enterprise, focuses on Microsoft cloud infrastructure, server, database, CRM, ERP, management and development tools, and other business process applications and services for enterprises.
Windows and Devices Group focuses on Microsoft Windows platform, applications, games, store, and devices that power the Windows ecosystem.
LinkedIn, focuses on services that transform the way customers hire, market, sell, and learn.
Microsoft revenues breakdown for 2017
[image error]
From its financial statements you can see how Microsoft has netted almost $90 in billion in 2017, compared to over $93 billion in 2015.
[image error]
Among the four primary business operations, Productivity and Busines Processes netted over $30 billion, while Intelligence Cloud netted over $27 billion and More Personal computer netted over $38 billion in 2017.
An increase of about four billion in productivity and revenues was mainly due to LinkedIn revenues,
How Does LinkedIn make money?
LinkedIn revenue was $2.3 billion, primarily comprised of revenue from Talent Solutions.
LinkedIn contributed to the almost four billion growth in productivity and business processes for Microsoft in 2017.
What is Azure? How the Microsoft cloud service is growing at a fast speed
Server products and cloud services revenue rose to $2.5 billion or 13%, driven by Azure revenue growth of 99% and server products licensed on-premises revenue growth of 4%.
Thus, the increase in revenues for the intelligent cloud is primarily due to Azure growth.
How much money does Bing make?
If we look at the advertising revenues generated by Microsoft – which can be primarily attributed to Bing – those amount to $6.9 billion in 2017. That makes Bing a large piece of the pie for Microsoft overall revenues.
However, if we compare Bing advertising revenues with Google’s over $95 billion for 2017; you can understand that Bing is still a minor player. However, Google’s advertising revenues also comprise YouTube, for which we don’t know the revenue breakdown yet, but we can assume to be at least a $15 billion business a year.
[image error]
What are the Microsoft distribution channels?
Those can be broken down in:
OEMs, OEMs that pre-install Microsoft software on new devices and servers they sell. The largest component of the OEM business is the Windows operating system pre-installed on devices.
Direct. Microsoft offers direct sales programs targeted to reach small, medium, and corporate customers, in addition to those Offered through the reseller channel. A large network of partner advisors supports many of these sales.
Distributors and resellers, license Microsoft products and services indirectly, primarily through licensing solution partners (“LSP”), distributors, value-added resellers (“VAR”), OEMs, and retailers.
Does Microsoft spend more on Research and Development or Sales and Marketing?
If we look at the accounting books, Microsoft spent 17% of its revenues in Sales and Marketing in 2017, compared to R&D for 14% of its revenues in 2017. Thus Microsoft spent more on Sales and Marketing than R&D:
[image error]
[image error]
What are Microsoft top products and services?
[image error]
From the revenue standpoint, Microsoft Office remains the most successful product. The game console Xbox also plays a key role in Microsoft financial success. While Advertising, mainly through the Bing search engine has been growing fast in the last couple of years. Also, the acquisition of LinkedIn has allowed Microsoft to enter the social media market.
Is Microsoft still innovating?
During fiscal years 2017, 2016, and 2015, research and development expense was $13.0 billion, $12.0 billion, and $12.0 billion, respectively. These amounts represented 14%, 14%, and 13% of revenue in fiscal years 2017, 2016, and 2015, respectively. Microsoft plans to continue to make significant investments in a broad range of research and development efforts.
In fact, as specified in its annual report for 2017, “The core currency of any business going forward will be the ability to reason over its data using AI to drive competitive advantage. Microsoft Research continues to make significant advances in AI technologies, infusing them into product experiences like Bing, Cortana, LinkedIn Newsfeed, Skype Translator, Editor and PowerPoint Designer in Office, Relationship Health in Dynamics, HoloLens, and many more. We are uniquely positioned to take this AI capability and democratize it so that every developer can be an AI developer, and every company can become an AI company.”
Other hand-picked articles:
How Does Twitter Make Money? Twitter Business Model In A Nutshell
How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained
How Amazon Makes Money: Amazon Business Model in a Nutshell
How Does Netflix Make Money? Netflix Business Model Explained
How Does PayPal Make Money? The PayPal Mafia Business Model Explained
How Does WhatsApp Make Money? WhatsApp Business Model Explained
The Power of Google Business Model in a Nutshell
The post How Does Microsoft Make Money? Microsoft Business Model In A Nutshell appeared first on FourWeekMBA.
