The AI race isn't just about who has the best technology. It's more about how countries are reshaping global trade and their economic rules through tech exports.
Countries like the US and China are not only building powerful AI but are also influencing how other nations build their own infrastructure based on their standards.
Europe risks falling behind by trying to regulate technology instead of actively shaping it. If it doesn't adapt, it might just follow the rules set by others.
When companies see big productivity gains, it could mean they're losing their competitive edge in the long run. This happens because the benefits aren't always kept by the business, similar to how new technology can hurt original owners.
It's important to figure out where productivity gains are coming from. If they're from the main product, the company might end up losing control and value, especially if they rely on outside suppliers.
To stay ahead, businesses should focus on creating unique advantages with technology rather than just using it to improve what they already do. This way, they can keep more control over pricing and profits.
Chegg's struggle shows how modern businesses face not just ordinary problems but bigger changes that redefine the whole market. They can lose ground quickly when something new, like AI, gives customers a better option.
Companies need to think differently about competition today. It's not just about beating the businesses they know, but also about new solutions that take away their customers.
When change happens quickly, businesses should look for ways to make that change permanent. This means creating new systems or services that keep customers even after the initial change fades.
The idea of 'Sandwich Economics' suggests that companies can create powerful economic frameworks instead of just focusing on products. This can change how industries compete and operate.
Reliance Jio shows that understanding and shaping the economic structure is key. By doing so, they made it hard for other companies to compete unless they fit into this new framework.
Big Tech companies often don't just introduce products but create entire systems that dictate how businesses within the industry function. It's about positioning yourself within this framework to succeed.
Uber's business model relies on local advantages, not just growing its user base. It needs to focus on economies of density and fixed costs to truly succeed in local markets.
Quick commerce thrives on efficiency by using small warehouses close to customers. This helps deliver products faster and cheaper, which makes it competitive against traditional e-commerce.
Rather than looking for network effects, local businesses should focus on how to optimize operations in areas with high demand. This includes owning production and managing inventory effectively.