competition

I’ve long maintained that the real competition for Chromebooks aren’t Windows PCs, they’re tablets. Here’s what I wrote:

[The Chromebook] is a device people with low computing needs might deem good enough. It’s capable for mail, web browsing and light office work; and for most people, that’s all they ever need…You know what else is excellent for low computing needs? Tablets, which have already been eating into the PC market for years for precisely that reason. If Chromebooks didn’t exist today, I suspect more tablets would have been sold in its place instead of Ultrabooks.

Chromebooks so far have found most success in the education market, where the device has gone head to head with — you guessed it — the iPad. I also wrote how ridiculous it is for schools to choose iPads over Chromebooks:

Education for children of that age is also relatively basic — it’s about teaching them where and how to research information (browser), how to type (keyboard) and how to write reports (Google docs) — and for that Chromebooks are perfectly adequate. You don’t need anything more advanced (Office) until later, where a similarly priced Windows machine might make more sense.

What doesn’t make any sense are iPads. iPads are consumption devices — what would you need to teach about consumption to kids? Here’s a videogame you should play? Here’s how you watch videos? Here’s how you use Facebook?

Why would you teach a child how to type with an onscreen keyboard instead of a real one?

Add to it the fact that iPads cost nearly twice as Chromebooks, and it just boggles the mind that iPads are doing well in schools at all.

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In my negotiation class at Stanford, we ran an exercise where we bargained contracts with one supplier, two suppliers, three suppliers, etc. The contracts were all different and randomized, so both sides didn’t know what each wanted and valued. However, one thing quickly became clear — even with just two suppliers, the probability of getting a good deal skyrocketed compared to dealing with just one. The more competition, the better for a customer.

That’s common sense of course, but it was illuminating to see it work first hand.

That’s why I have doubts about Uber becoming the next Google even with its amazing revenue growth. You may have heard it’s trying to raise $1 billion at a $17 billion valuation.

It’s impossible to determine Uber’s fair value without concrete numbers, but I do know this: Uber will face intense competition and struggle against it.

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There’s a story on TechCrunch today on how Microsoft’s market value exceeded Google’s market value. I don’t know if this is news, but I suppose it’s interesting to check in from time to time on how the public markets perceive the two tech giants.

What caught my eye were two comments from those claiming to be from two prestigious venture capital firms: Accel Partners and Silver Lake Partners.

Here’s an angry one from Han Lee, Accel Partners:

Dear writer, do you really not know the difference between market cap and enterprise value? Pathetic.

From Jeff Schnabel, Operating Executive at Silver Lake Partners:

Total enterprise value is a more accurate measure of a company’s value (market cap is only a piece of the puzzle – the value of the company’s publicly traded equity).

If you look at TEV, Google is still worth more than Microsoft ($306.4B vs. $290.4B)

What is Enterprise Value and how’s it different to Market Value you may ask? Finance people love to confuse lay people to make themselves look smarter, so let’s peel away the jargon.

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Foursquare is pivoting to a focus on place recommendations – e.g. restaurants and cafes – and this made us wonder how the app actually stacks up to the competition already there. Food is the biggest category and since we are in Singapore and food is inherently local, we examine the competition here: Yelp, Hungrygowhere, SoShiok, 8 Days Eat, Pickat and Burpple in addition to Foursquare.

We pit all seven apps against each other, reality game style, to see who comes out on top. The answer may surprise you.

Note: We tested the iPhone versions of all seven apps.

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The winner of Echelon’s India satellite, Hoverr, caught my eye.  Their business is about putting ads in front of websites’ images; what they do is analyze what’s in the image and then serve a targeted ad.  For example, if the photo is about a car, why not serve an ad for the latest BMW.  People don’t look at banner ads in the usual places but they do look at a story’s photos, so not only can the ad be more compelling it can also have prominent placement.

It’s an interesting idea.  I wanted to vote for them to win Echelon until they freely admitted they were a copycat, and about the fifth or sixth to the market too.  You can’t win a start-up competition by being a clone, can you?

I recently saw such an ad — I don’t know if it was Hoverr’s or one of their competitors’ — and I almost coughed up my drink when I saw it.

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