Thank you Caroline for sharing about GridPoint.
I completely agree that cross-selling with an external salesforce will not be creating value for the company. I guess that GridPoint’s price point for the service delivered could be >5x than the value of ADT and I can see the misalignment. Also, maintaining the relationship with the salesforce is dependent on how well the product acts, how much money is GridPoint saving Walgreens. I could see GridPoint leveraging its own salesforce with another set of products that are aligned with the training its salesforce goes into. Gridpoint is sacrificing quality for coverage, and this could eventually tilt in the wrong direction with customers leaving the company.
Thank you for sharing with us your thoughts on Amazon. I think that in the future Amazon will replace human labor with capital. Their approach of replacing has brought them greater flexibility and will definitely increase their throughput time. As the company continues to grow I think that increasing their operating efficiencies as you show us with automation will bring Amazon’s profitability up to speed.
This business model has failed in Mexico as companies were not able to execute correctly the two roads you enlist – brining up utilization (selling to parents) and lowering capex outlay. Although, the Mexican government created artificial geographical monopolies for the ST version, the company is facing a re-structure (debt related).
Thank you for sharing this very interesting business and operating model and I will continue to watch over ST as transportation in my side of the world is still a big question on who should take over (private vs public) and how to approach the problem. For now, we are trying to replicate the U.S. model by making school transportation mandatory and allowing companies to take on the challenge.