Permanent Equity Weekly #51

Ownership culture as a moat. The pandemic exposed how few companies could respond flexibly to a downturn. The argument: a company’s ownership culture is nearly impossible to replicate because it is fundamentally unique — and advantage still comes down to saving the customer time or money, or delivering higher quality at similar price.

Notes

• If the pandemic has revealed anything, it has laid bare the inability of many companies to respond flexibly in an economic downturn of this magnitude. Flexibility is required when attempting to adapt company strategy to a new reality. Those with the flexibility and will to adapt will flourish in the recovery.
• The culture of a company’s ownership can be a moat that is nearly impossible to replicate, because it is fundamentally unique.
• Your business’s advantage comes from saving your customers time or money, or providing higher quality for similar price.
• “The rationale behind the deal was to put both leverage both companies’ expertise. Millions of online merchants are already on Shopify, and this partnership allows them to list their items on Walmart’s online marketplace without using new external tools. Jeff Clementz, VP of Walmart Marketplace Anti-Amazon Enablement
• The hierarchy of marketplaces: part I, part II, part III (Sarah Tavel) Marketplaces Hierarchy of Marketplaces
• • Sarah Tavel of Benchmark has written an in depth 3-part synopsis on what it takes to strategically and successfully grow a marketplace business. While this is geared directly towards technology startups, the series contains valuable strategic insights for all business owners as well.