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Hi, everyone. Welcome to the Daily Dose podcast. This is a podcast where we pick out things from the news and social media is interesting to us as entrepreneurs and as business nerds. I’m James and I’m joined by my co-host, Marcella. I’m Ed Henry. I’m very good. Thank you. We’ve got three different topics for you today. First on the list, within the last couple of days, the news broke that Apple has hit two trillion dollars in market capitalisation. I think I’m pretty sure they’re the first companies to do that. And that is an extraordinary amount of money. And they will what was politically interesting about it has been so that there’s just been so a few stats around, you know, where they where they’ve been in the past. You know, this is a company which has gone from being sort of borderline bankrupt. When Steve Jobs came back in to sort of take it over and and rescue it to now be the most valuable company in the world. So it’s an it’s a heck of a trajectory. And also, you know, they’ve survived various things over, you know, the loss of Steve Jobs, et cetera. Tim Cook taking over. Often you’ll find sort of companies or human organisations who have a very strong leaders tend to really suffer when the strong leader sort of moves on and puts his replacement in place. You know, it happens with company as it happens with sports teams. You know, it happens alive and royal families, countries, you name it. It can go dodgy as a as an illustration of how far they come. I just looked up the market capitalisation as at the start of 2010. So roughly 10 years ago. And they were worth one hundred and ninety billion then. So they’ve literally know the order of magnitude gone from effectively two hundred billion to two trillion in market capitalisation within 10 years, which is a hell of a ride.

So the reasons for that, obviously, you know, they’re a very successful company, a very profitable company. They’re sitting on a vast amount of money. But there are some arguments we made us to. Okay. Is is this two trillion? As a result of purely the operations of the company, or is it as a result of what’s going on with the underlying economy, what’s going on with the U.S. dollar, et cetera? Have you got any opinions on this?

Yes. So I think it’s remarkable. Two years ago, they hit the one trillion mark valuation. So I’d lost. So it took them. They were around. They were funded like in 1980. So it took them like almost 30 years to hit the one trillion mark. And then two years to double that. So if you look at it that way, it doesn’t make sense that they can be purely economic gain. All right. It got to me. Let’s say natsuo progress or development of the company. So clearly this is inflated by all them. I mean, we were talking beauteous, Bob. But every time the US Federal Reserve, the Reserve Board, which is the equivalent of the central bank in the U.S., prints trillions of dollars. Those go see the stock market.

And in this case, new tip. And they make they went mainly to tech stocks, which were seen as the main winners out of all this mess. So, yeah. So it’s inflated. Let’s put it that way.

But still, they have a very strong performance. So when investors don’t know what they want to do, they say, OK. Which we 20 state better performing or the best performing company out there. Anapolis probably best. Or one of the best they can. A massive cash flow. Their sales were still growing this year.

It’s just because I think they’re married. Instead, they invested long term in the sense that they went to create their own hardware and so forth.

So it took time to perfection. And then also to lunch like new products. But eventually now they have all these ecosystem dot. It’s really hard to compete with. So on to prove that it’s hard stuff. There is no other company doing such thing. Unlike Samsung, which was competing with the iPhone head to head then. So they they are starting to develop their own software because of disputes or instability with Android. But, Steve, there’s a long way to go. So, yeah. And that’s just one company as well.

So then it’s. Yeah, that that’s their main, I would say key committee advantage or married. They have years ago and now they are harvesting the results. What I’m what I’m dissatisfied broadly with Apple is that they are not innovating as much. So they are just sitting on, as you said, in a pile of cash.

They are like milking that. There are the returns plain financial engineering pay no taxes at all on the ward. They repatriate some cash with Trump as well. They did share shares buybacks. So but since the iPhone have been very little inflation. I would say the most neutral of the stuff they put out there were all these wireless outputs, essentially wireless headphones.

Which is cool, but it’s not, you know, from breaking.

So people are expecting now 5G to come to iPhone and see which other implementations or new features that can bring. Yeah, still, I think it’s still linear. It’s not definitely not exponential or or like groundbreaking. That could be potentially there. So there may be flaws. So if someone they’re their Achilles heel, let’s say. So if a company just finds a replacement for Dipen, that’s how Apple can separate potential in the future because they have not been awake enough. And they are too big now. So they’re time to market. It’s not as quickly as our companies. So I would say broadly that companies are now pushing the same Long-Term Strategies are like Tesla. So it’s a completely different brother. Of course, a car than a phone. So that phone clearly is on demand for the foreseeable future. Has the cars as well. But we don’t know, actually, because if you are confined and you cannot go around or maybe people use other means of transport that Saddam saw. Yeah. But we are not so sure. But if it is the case that the demand for cars per se, they’re investing long term. So, again, at the beginning, it was clear that they could pull it off. But now those who getting more clear to stop is rising and they can keep their one three down at some point and maybe keep growing because that gap with the other, I guess it’s going to be considerable.

So, yeah, they will cut it down on kind of ring-fence their own market share.

I think something that’s not necessarily true, but is is at least an anecdote, is if you look at the companies that are really succeeding in terms of stock value on the stock market at the moment, when everyone else is kind of like tanking, I think one way that you could describe all of those companies that are thriving is they’re all vertically integrated.

They’re all they they manufacture, produce and sell everything all the way entirely up and down the chain. So if you look at, say, Apple do that, obviously, you know, they have their own their own chips increasingly in their computers and in their products. They’ve got their own software stock, they’ve got their own marketplace, etc. They’ve got their own stores that they sell things through. Again, Tesla, you know, they manufacture the batteries. They manufacture the cars. They manufacture the factories that make the cars in the process. That makes the cars, they sell them directly. Space X, you know, exactly the same. They make the rockets, they fly the rockets, they do the etc.. Amazon, you know, they they the entire stack of Amazon is top to bottom and increasingly so Google, you know, they own vast quantities of fibre, private fibre over which they send their own data. They you know, they completely own the search space. They own the browser. They own know advertising, search advertising.

And it’s that it seems like that vertical integration, like doing everything top to bottom and doing it well.

Is, you know, is the thing that’s really sort of driving the market capitalisation value at the moment for those sort of biggest companies out there. So another example of vertical integration in the big tech firms. Amazon announced a new project that they’re undertaking called Project Kuyper, which is Amazon’s competitor to Space X, is Starlink fleet of satellite.

So basically, this is Amazon going to launch over the next six years, apparently, or 12 years, three thousand two hundred and thirty six satellites into low Earth orbit orbit to offer data and broadband services. So basically, if you’ve got a receiver, which presumably they will produce, you will be able to get data services by these satellites, which are whizzing by overhead and spoiling all the astronomer’s fun. And it’s it’s it’s literally a direct capacities to what Space X is doing, a starling, which is what’s going on. This Space X is obviously ahead. They’ve already launched a whole bunch of satellites, hundreds of them. And so the Federal Communications Commission in the US has just granted them Amazon a licence to do this. Amazon has committed to spending 10 billion dollars on building and launching these things. One slight fly in the ointment for Amazon is that they have to launch half of that number within six years in order to keep the licence. If they don’t hit that number, then they lose the licence. And this is part of the I’m not sure if this is part of the competition between sort of Amazon and the rest the world, whether this is Jeff Bezos versus Elon Musk. Because, you know, they compete in business. They compete in rockets. Jeff Bezos has got Blue Origin, his rocket company. Elon Musk has got Space X, his rocket companies basically subsidy ahead at this point. But, you know, if anyone’s got the pockets to catch up, then it’s Jeff Bezos because, you know, it’s throwing a few billion at that problem is probably, you know, an afternoon is chump change to him.


There are various sort of arguments to be made, pro and con, of these kind of satellite provided broadband, and whether you know how interesting this is as part of Amazon’s Hollo sort of vertical integration of vertical stack. What I know I know what you’re wearing and Occupy Mols t shirt. Those people listening isolates where I can occupy most t shirt. I know you’re a big fan of space and space exploration travel. What what what do you think of this?

Yes. Yes, I am. Yeah. Many, many things here. I’m curious why they have that deadline on six years to launch half. It’s curious. So maybe it could be due to the fact that it’s not infinite, the amount of satellites that you can actually launch. There’s a well, there has been a big discussion there when Space X started, you know, looking out there, I think it was thousands already. They planned to put like 15000, something like that. And they put like one point five thousand already or so.

So the licence, the reason why there’s a time limit on the licence with that stuff is because effectively they they are taking up a proportion of the radio spectrum. That’s what they’ve been. Yeah. I wanted as part of the licence.

And so if they don’t take advantage of it, you’re not allowed to just sit on a on a part of the spectrum without using it, you know. So they they deliberately put a cap on it so that no one can just fire a chunk and prevent anyone else from taking advantage of all that.

Yeah. Then I was my guess was correct. Probably IDM phrasing. And yeah. Or I phrased it poorly but which that that’s interesting because then you’re saying first of all, why does the US so the space is not part of the US, you know. So that’s one thing. So secondly, this will become a monopoly, not by definition, because if there is assuming they are there, it’s limited, limited that that space in space. It’s a spectrum. So that other countries are going to fill it as well, like China or Russia, I mean, with other stuff. So it’s already packed. So there is all these derbies on space waste or rubbish on satellites that clash with each other or go out of operation and some then they disintegrate or whatever happens to them. But all that those derbies are creating like a massive pile of facades, actually not the kind. Keep other satellites or U.N. spaceships. So, yeah, if you keep granting those licences to thousands and thousands of other satellites, it’s gonna get messy. The benefits are so so far, I’m not very informed on the specifics. So to my understanding, is it will benefit coverage, essentially. So my ward wide where you are, but also probably will lower costs out. I must submit that especially in developing countries, the cost of data is huge comparatively to light areas. So if you can democratise that and give truly access unlimited fast Internet connectivity, access to everyone in the world, I mean, those companies will benefit massively. Just may humanity in general so we can bring on more people to come for the knowledge base worldwide.

Also, there will be lots of more trolls and angry people. Yes, but. Yes. So if you can also increase the speed, that could be interesting. I think actually. So current telcos are not a monopoly about our kind of fun oligopoly broadly in emerging countries. They are sort of monopolies because they are like two or three. They just dominate prices.

The services at best. All right. And they they gonna charge you.

It’s very limited which options you have. Forget about the Internet of Things. If you don’t have if you depend on those telcos. So then there’s salacious on the fly away thing. And this amount of data. So having options is good, but I don’t think we understand yet. Like the cost. We can’t let that come close to us or the risks are. Yeah. Or what it means. So I’m pro space. Exploration and I think the most interesting stuff. Of course, local buying Mars or the moon base in the moon. That’s like we’ll be a dream come true. But that was affordable space travel broadly. Virgin Galactic is promoting that. But it’s not affordable at all. It’s like I think, well, they dropped the price list anywhere between 200 gay and one million. So it seemed not affordable. But maybe if they do it enough times, that can drop.

But it’s still a long way. But broadly, one of the most interesting stuff is there. Asteroid mining. So I think not only. I mean, from an economic point of view, only a few would benefit. But ideally, we should take all industry outside the earth. But, of course, on an ideal scenario. So we don’t keep fucking up this planet. Let’s keep it as presidential as possible. Yeah, I’m clean. So. Yeah.

So you see a for being like a result planet where everyone just sort of like chills out lives and and holidays and parties and then and then no economic activity can happen on the dark side of the moon. Yes. Relations lastic over there.

Yeah. Gods up cob lie on our universities. Yeah. Yeah. Glub, sun. Some residential areas. Take all the averages. Maybe have this. There were some cases for space elevator. I don’t know about that. They wanted to build carbon nanotubes. Well that will be a long set of carbon nanotubes. They are very hard to grade. Like my girl dosis in Spain elapse and very expensive. So it’s great that space elevator again unseats.

Yeah. But again, it’ll be fun. So yeah, I, I support competition within the space race, but Protei should be more clear on the benefits. Pretty widespread that we should be careful.

We’d want to police as well, especially by Amazon is already labelled. That’s a monopoly. So if they start now buying like space monopoly some decent, that’s so it can get very tricky. I don’t like I really like us.

You know, the musk, we don’t he’s, you know, drawbacks or I mean, ask anyone, but I think he’s pushing for a noble cause.

Whereas Jeff Bezos. I don’t know.

I think he he’s not committing to any philanthropy on like Bill Gates promoted with other chops. And he’s not necessarily he gets a lot of money. He seems so much that actually he can build stuff. What? I think he’s building it more for fun. I don’t see him. He’s crashing retail. He’s. He commits from time to time, like a very tiny amount of his fortune to sound like climate change stuff. But it’s like like a fraction like Sealab points or one percent or whatever. So he doesn’t care much. I think he must stop for fun. Socky lights. So it’s brawly. I mean, more selfish for being I mean, you know, a big responsibility. I would say once you are in that position and I at least I have not seen from him any intention on making all of us better. So that’s that’s my red flag. And if they want to compete, I think competition is good. But yeah, I would like to see more visibility on that game. Yeah.

So thinking about our viewers and our listeners, they probably can’t compete in the space race or launching satellites. But for our final topic, I thought it would be a good idea for us to discuss something that’s a bit more down to earth. I’m full of the puns today. And that is. An idea for doing business and an angle on doing business, which is something that we’ve obviously been doing, but I think that should be open to more people and is probably something the people don’t think about as much as maybe they should think about. And that is. You doing businesses in other countries and territories other than the country or territory that you’re in at the moment. And also the opportunities that are out there for taking businesses and business models that work in one country and bringing it to another country and introducing it. So if youre in the US, your business sort of view tends to be very Eurocentric, like the US, is it like a massive market? There’s plenty of people there, lots of money. And so, you know, you can make really good business without having to look elsewhere to do anything else. If you’re in a much smaller country, then you’re probably more open to doing business elsewhere, because in order to get a large market, you’d have to go internationally. You have to do things. So the classic example of this kind of approach was and is rocket Internet, which is the Samba Brothers in Germany, and essentially their business model has been for many years, is taking the business model of start-ups that are on sort of high growth trajectories coming out of Silicon Valley and doing things like that and then essentially cloning them in the European market. Investing. Building them out. An almost one for one exact copy of what is working, what is with particular companies in the US, building them out, taking out the profit, and then either IPO ing it or selling its private equity or. Doing things like that, and they’ve been very successful.

So they’ve, you know, they’ve got clones of things like eBay and strike and payment providers and all sorts of things. And they’re they’re quite sort of famous or infamous for doing this.

I think they get a lot of stick for various reasons. But, you know, some of their business practises may maybe somewhat. Who knows?

But the you know, they get set for essentially cloning ideas and doing whatever. But, like, fundamentally.

There’s no you know, it is more of a kind of a strange fairness, moral argument around like, oh, well, this is you know, it was their idea. So you’re stealing their idea or you’re copying their idea or just the idea from school. You know, when you’re at school and you’re doing an exam, when you’re like five years old and you sort of put your hand around your exam papers now and could copy it, it’s that it’s the same thing of like, well, you know, that that is not the world isn’t a zero sum game, you know, it’s like, you know, if they’re introducing that into new markets, then the new market is I will take advantage of whatever benefits that those companies are bringing to the market. You know, say that they’re Aebi claims allows the whole class of commerce for a bunch of people to to do commerce over.

There were either eBay wasn’t available or it was set up better than the by the payment providers. You know, you’re right to get access to cheaper transaction fees. Right. So entrepreneurs were able to be sort of more commercially successful off the back of it. So, you know, the net win for the ecosystem was far greater than any sort of damage, pride of stealing a business idea from someone else. So what are your thoughts on so obviously, you know, we you spent a lot of time in the U.K. and London and sort of the English speaking business world, but obviously also yourself. You also the native Spanish speaker, and you are now in Spain. What’s your thoughts on sort of doing business or taking business ideas sort of across buycks language and sort of cultural barriers?

I think it’s a great way to do business. But for any entrepreneur at any stage, we talked a lot before on previous podcast on the importance of doing your homework, your research. But don’t get stuck there. So by imitating something that works, I’m taking somewhere else. That’s you save a lot of time and you lower your risk considerably. You should pay attention, though. Then first of all, I would say that regulation in our country, because there may be financial services for sure, it borrows a lot.

But then on like e-commerce, there could be no quotas or this or that or tariffs. So you should pay attention to that. Then Brocket started doing that very successfully. But nowadays I think they are more or not like acquisition strategy, because I’m not prove the point that essentially it’s not rocket a combat rocket DNA does the company doesn’t have any special advantage unless they send people to leave me in Silicon Valley and they can spot it earlier.

But actually, people from anywhere intrapreneurs from anywhere in the world, they can cheque. And so, I mean, what’s going on? What are the new trends start-ups these and that? And they can try to imitate on their feet. So they tend to market for local entrepreneurs. It’s going faster than rocket go into those markets. So for them, for Rocket, I’d say Ning doesn’t matter. Got some make up and feel like we deliver a hero, which was essentially like set on imitation, on where each store does, etc. They say this is food for delivery. I’ll say must deliver. So they have acquired a decent system, build a very strong brand. I mean, multibrand because they kept their local brands there behind those businesses. So, yeah, they won more DeCoursey showroom. They empowered those businesses. They buy the Merrilee. But you as an entrepreneur, you can’t start those businesses as well. You can grow them or just exit with one of these chips that you can go to rocket engine and then say, look, I’m doing this, which is like a Prudence’s model of that. Let’s partner. Let’s do this and that. So. So you have that. You have like already like guy initial push are like momentum from something that’s working where you can take it to your market and then you have a clear growth or exit path as well. For example, with Rocket or other companies that are investors also tend to like, you know, business models that are proven. They are more careful on investing on something that is self proven because, of course, there’s high risk. Not only that, there is that execution risk, which is always there, but then they have the risk gone like that. There is a demand for this or not or was just going to happen. So I think it’s a great this one may not hide your for have recommended as well before like Richard Branson or even others. So yeah, I will recommend it. I think so soft I don’t think is very straightforward. But if you are Locana, your country, I’m sure you will find a way to adapt that to how it works in that country. And that’s actually any value you are having. But then you are solving the problem somehow to make that work in your country, not on how to build a whole new category.

Yeah. And another pro to the model is. Distribution tends to be a pay, distribution tends to be cheaper, and in markets outside of the USA, for example. So if there is a business model that is, you know, is working in the US and you’ve got a handle on, you know, how they’re acquiring customers, how they’re then converting those customers into how they’re monetising those customers and things like that.

If you take that same model to a two different market, for example, you’ll pay per click. Advertising or SDM advertising is going to be cheaper on a per customer basis than it is in the US because there’s less competition for it. And so the economics of the distribution side of things are in your favour when it comes to things like that. So in other words, it should be relatively easier in Tibet. Obviously, there are other challenges and other other other problems. But, you know, your your margins might be better. You know, the amount of money you have to spend to get set up will be lower. And so there’s a whole bunch of benefits in there. I think another thing I would say is that from the perspective of someone who is in, say, for example, in the English speaking market, who wants to take a business and go out into another’s language market. Then it pays to find someone who is a native of that language or culture who can help you sort of like navigate the intricacies of both the language, the culture, the regulatory environment, et cetera, et cetera. You know, having like a joint venture set up where, in other words, if you can find, you know, someone who can you know, who can see where one of you can sit on the other side of the fence and then, you know, each of you has the knowledge of each other’s regulatory environment and business culture, et cetera. And then that’s really powerful as well. You know, particularly coming from sort of English speaking business. You can find, you know, good English speaking natives of pretty much every country in the world, which is, you know, the the benefit of English being sort of the lingua franca kind of of business. And so there are plenty of people out that, you know, you can find these people online even if you don’t have them within your own kind of like friend groups, things like that, then you’ll be hard to find on any of the sort of communities that are associated with entrepreneurship or communities that are associated with doing business. You’ll be able to find people to help you on those lines. You can team up to do some of this kind of thing. You got any thoughts on that?

Oh, yeah. Also, personally, whether we have seen that when trying to sell same product in different countries or we actually surveyed people in different languages and countries, they tend to behave the same. And that was very interesting. So if you run a survey on what you want for some, for you and for networkers, which type of content you want. It was almost identical, their responses. So percentages of responses on interests in English and Spanish, for example. So honestly, the first time I have seen that, I’ve seen it in French, Italian, Sidrah. So they’re Reise tendency to, you know, to repeat the patterns of what people like or how they fixed up, how they searched for things, how they consume online. So it’s tend to be it’s not even if the countries are culturally very different. There are several things that actually you can run by analogy. You can have a comparable sample there. So. So then that’s that’s also been in your favour. So, yeah. And just don’t assume I would say that because they are very culturally different. That’s money. Something to work. Usually it’s not the case. It will work. So I thought, for example, initially that Uber is it was not going to working part time because I know a stranger would get into your car. Who knows? But yeah, it did work. So. So, yeah. Just something because of there. Of course there are risks and there are outlier situations on.

Yeah. And that can happen actually anywhere but not because of that. That doesn’t mean that it’s still going to work. Better service. So usually does. It’s a better service. On any vertical. Yeah. You have good thoughts on that work in your country. So. Yeah.

Tried out. For sure. So as a take a try and see what you could do either with your own business model elsewhere or see if there’s a business model from a different market that could work in your market. That’s our podcast for today. Thanks very much for listening. We’ll be back next week with some more nuggets of knowledge. In the meantime, please do cheque out our YouTube channel, which is where we post this and our other podcast, search for net workers to us. Or you can find a link in the show notes. If you’re interested in a deeper dive into all things entrepreneurial, including more detailed information, help mentorship and courses, please cheque out our Web site, which is at networkers dot com. See your next hour. You’re right.

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