Truly an amazing story where the technology, product and supply chain lined up perfectly. I wonder what’s next for DJI as they tapped out the consumer market and drone is a product that consumers tend to hang on to for many years given its high quality and premium price, rather than replace / upgrade like iPhone every 1-2 years. In light of the recent pilot that Amazon launched with FedEx and Walgreens, what role do you see DJI could play in the commercial space? As that market potentially could be much bigger if where a commercial drones fleet and the replenish cycle will be somewhat predictable.
Such an exciting winner story in LatAm! And also reminds me of Alibaba that initially started out as a Ecommerce platform and expanded into adjacent space gradually (vertical integration). You are spot on in terms of Fintech being the new growth area in order for Mercado Libre to continue to be a winner in the next decade. I do think they are uniquely positioned in the value chain to take on that challenge. A few low-hanging fruits are: 1) SME working capital financing: they already own all the merchants transactions so it will be easier for them to develop a proprietary risk assessment model to underwrite loan (like PayPal Working Capital); 2) Consumer PoS financing: for consumers who are not able to afford the purchace in one payment, especially the non-banked population / without credit card. they could offer installments to entice more consumer purchases (like Affirm in US); 3) Insurance: as consumers already have a Mercado Pago wallet, and invest the balances, Mercado Libre could take it further to offer insurance products. Thoughts?
Thanks Bastian – super interesting post! I actually looked at Garmin when I was working on Fitbit acquisition at Google CorpDev. You are spot on in terms of Garmin’s diversitied business units and recent growth more coming from fitness / wearables – as consumers needs are shifting away from single-purpose tracker (Fitbit’s stock plunge) to more functionality (Garmin & Apple Watch). I wonder whether they could leverage their strength in hardware to build something interesting for wearbles, potentially the next gen computing platform. However, software / content econosystem strategy (build / partner / buy) needs to be fleshed out as it’s increasinly more about a blended hardware + software offering for optimal user experience.
Your question around “What if it had been Garmin, not Google, that sent cars to streets worldwide in order to map and take pictures of every corner of the world?” is thought-provoking. Mapping requires inherently different capabilities which I’m not sure Garmin possessed at that time. But I am curious if they had foreseen the shift from GPS device to app and had leveraged their wide distribution of hardware at that time to crowdsource mapping info, how would the landscape look like today.