Interesting post! I wonder if CommonBond adjusts its rates based on student performance. Intuitively, high GPAs and SAT scores as well as strong internships and extracurricular activities are all correlated with future economic success, which would reduce default risk for CommonBond. While there may be questionable applications of such a policy as well (i.e. linking interest rates to choice of major, and thereby incentivizing students to pick high income majors like business and engineering), it would certainly reward students who excel in the classroom.
Interesting comment. While I understand concerns about external shocks, I disagree that the company has merely profited from a strong economy and government subsidies. Given the high transportation costs in this industry, I would expect significant barriers to entry for international competition. And among domestic players, Ibstock’s broad plant footprint, flexible cost structure and pricing power seem to set it apart from its peers. I see how downturns and capex cycles present an issue in this market, but Ibstock seems as prepared and robust as anyone in the industry.
Interesting write-up. I have shopped at Trader Joe’s a few times this semester and noticed many of the operating model components you mentioned in your post. In addition to what you listed, I would add focus on customer service as another positive element of TJ’s strategy. And while I agree that TJ has disrupted its industry with its operating model, I would expect competitors and / or new market entrants to imitate TJ’s purchasing system and focus on private label branding in the future.