The Internet is a destroyer of margins for incumbent business models based on an analogue world. Here's why.
For disruption, data size matters. It matters in terms of data transfer and media streaming speeds. And it also matters in terms of storage capacity.
People have a bias toward belief. And in the virtual world where the Internet dominates news sources, this has big consequences.
Tesla is a completely speculative, junk-rated venture. Investors in the company are betting on Elon Musk's celebrity as a forward-thinker, hoping he can ramp up production and achieve significant economies of scale
We're in the midst of another technology bubble. And Tesla has benefitted greatly. When this bubble pops, where will Tesla be?
I am using Tesla as an example here more than anything. I am not about to delve into Tesla's loss-making operations and make a case against the stock specifically. But I do want to highlight the 'bubble' that Tesla represents.
There are two ways to explain persistently high corporate profit margins. One interpretation is about inequity, and implicitly about corporatism masquerading as liberty. And the other is about network effects creating an age of winner take…