This post is very insightful! I always thought cost level and service quality are two things a company has to trade off. I’m a little surprised Singapore Airlines is able to deliver both in this highly competitive market. I like the idea the company empowers frontier labor force to come up with cost optimisation ideas. But as the labor cost in those traditional out-sourcing countries are becoming higher and higher, I’m not sure whether SIA is facing problems with cost optimisation. And if it is, I’m curious about how this company is going to further reduce its cost in other areas.
As someone from China, I always miss the cheap (by “cheap” I mean almost free) food delivery. So it’s really interesting to learn about the operation model of food delivery business in a high-labor-cost country like UK. Owning the logistic network is definitely a big competitive advantage for Deliveroo, but it also means the model is quite capital intensive compared to their competitors. As food delivery is generally a low margin category, I’m curious about the company’s profitability level. How are they able to achieve a positive profit?
Alex, this post is really interesting. As someone from a typical “big and bureaucratic” company, I’m impressed by this unique organisational structure of Spotify. I think one of the big challenges for start-ups is how to keep the entrepreneurship culture while the company becomes bigger. And Spotify has done a great job in order to facilitate a high pace of innovation. But as we learn from LEAD, after company size exceeds a certain threshold, this “informal” operation model might be less effective than a “formal” model. I’m curious to see how Spotify is going to do with its “Squad” team structure in the future as the it becomes even bigger than today.