Thoughts on Business and Technology

Toll Bridge Business

  1. Waste Management (W)
  2. Electricity providers(W)
  3. Cell Phone Carrier (M)
  4. Cable Provider (M)
  5. Gas Pipelines(W)
  6. Railways(W)
  7. Internet Service Providers (W)
  8. Web Hosting Companies (N)
  9. CDN (N)
  10. Search Engines (N)
  11. Credit Cards [Visa/MasterCard/AMEX] (W)
  12. Transactional Exchanges [ebay] (M)
  13. Courier Servie (FedEx/DHL) (M)
  14. App/Music/Movie Store (Goog/Apple) (W)
  15. Retail Stores (COSTCO/Amazon/Walmart) (M)

Whats the winning charecterstics

  1. Live forever
  2. unregulated market
  3. low cost of maintenance
  4. dominant market position / marketshare
  5. high profitability / high ROIC

What you should watch out for

Big Brands need a fortunes to maintain and cost their owners in advertisement and other expenses

Bridges / Mediums which need constant maintenance and enhancements to keep up with other bridges ( low barrier to entry businesses )

Notes : All these business models are gateways, people pay money to use them.

some of the key concepts / terms to understand are

These business are GATEWAYS that people “PAY TOLL” to use the metaphorical bridge ( which can be one of the below ) for “MOVEMENT” of their goods or “TRAFFIC”.

Important question is – Why users of these bridges see no alternative to these bridges.

  1. Google – advertisers pay to place ads (advertisement gateway )
  2. ebay – transactional gateway
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