The New Era of Economic Abundance

The New Era of Economic Abundance

"The New Era of Economic Abundance" Research Report If you would like to receive a complimentary copy of our new in-depth research report, please type in your email address and we will send you a download link.   Whether you are an executive, entrepreneur, investor, or an individual  interested in learning more about the emerging Sharing Economy, I think you will find these highlights from my new research report “The New Era of Economic Abundance” a value-added and insightful read…  By defying traditional economic principles of scarcity, the valuations of Airbnb and Uber have risen exponentially to $25.5 billion and $51 billion. Under our new laws of “Copianomics” (the science of choice under abundance, as opposed to scarcity), the following two economic forces act as growth catalysts: 1. Long Tail of Supply: Building Inventory with No Time or Capital Constraints In his book The Long Tail, Chris Anderson discusses how the democratization of content will lead to a reversal of economics of the mass market era as the large number of niches in the long tail starts to rival the head of the demand curve. This captures the basic essence of the Abundance Economy supply side as the under-utilized personal assets, goods and talent that were, “…previously dismissed as beneath the economic fringe…” can now be exchanged more efficiently and effectively between people below the depths of the corporate ocean. For example, as shown in Figure 1, Airbnb is building a long tail in accommodation, with 1,000 listings equivalent to one hotel. Airbnb is forecasting revenue to rise from just under $1 billion this year to reach $10 billion...
The Abundance Economy – Where the Long Tail Meets the Blue Ocean (Sept 2014)

The Abundance Economy – Where the Long Tail Meets the Blue Ocean (Sept 2014)

Executive Summary The massive global network of highly connected individuals created by Web 2.0 companies laid the foundation for the emergence of a diverse and self-sustaining ecosystem that enables people to transact beyond the depths of the corporate ocean: the new Abundance Economy. These companies are accessing not only “blue oceans” of market demand, but discovering new “long tails”, with no capital or time constraints, leading to an abundance of both demand and supply. The Abundance Economy is comprised of companies with two-sided markets that enable people and businesses to monetize under-utilized/latent assets, goods, and services by providing them with structural and customer capital. We categorize companies based on the source of their value origination into the following five classes: Assets, Goods, Delivery Services, Commodity Services, and Specialized Services. Introducing copianomics: the science of choice under abundance. Under the laws of copianomics, the Abundance Economy companies have the potential to achieve accelerated value creation through accessing multiple supply and demand side growth levers to achieve superior unit growth and comparable sales growth. In six years, Airbnb has created a long tail of over 800,000 listings, surpassing the 690,000 hotel rooms of nearly century-old hospitality company, Hilton Worldwide. But given the exponential size in the US alone of the long tail relative to the head (e.g. 4.9 million guestrooms represent less than 4% of the 133 million personal homes) and the fact that Airbnb only has 148,000 listings, or 0.1% penetration of this tail, its potential to disrupt the $163 billion lodging industry is massive. And Uber, which was founded only five years ago, has expanded to 205 cities in...
Zillow: Disrupting the $75 Billion Realtor-Centric Machine (April 2014)

Zillow: Disrupting the $75 Billion Realtor-Centric Machine (April 2014)

We recommend Zillow Inc. (Z-NASDAQ) as a BUY with an initial target price of $120.00. Zillow offers investors a unique opportunity to take a stake in an early-stage online residential real estate marketplace company that is disrupting the $75 billion realtor-centric machine through its greater purpose to “lead a revolution in online real estate to empower consumers”. In less than a decade, Zillow has created a thriving ecosystem with significant scale and influence by generating Positive Social Capital (i.e. shared value and positive externalities) for its community of 800-plus employees, over 70 million unique visitors, 650,000 real estate agents, four leading media distribution partners, and the U.S. government. Zillow will be able to sustain its competitive advantage through its following four generative economic moats: Low Cost Producer: Visitors to Zillow’s listings provide it with an extremely low-cost and highly scalable source of raw material (i.e. home impressions). Intangible Assets: Zillow is creating the “long tail” of the Real Estate Marketplace by democratizing the tools of production and distribution and connecting supply with demand by facilitating trust and reducing search costs for consumers. High Switching Costs: Zillow’s freemium aspects and social value creation opportunities of advocacy, learning, and collaboration create stickiness. Network Effect: Zillow’s structural asset appreciates in value as a result of the network effect. Zillow is poised to start capitalizing on its structural asset base (database on 115 million homes, 650,000 Real Estate Agent Professional Profiles, 37 million pieces of user-generated content). Although Zillow appears unthreatening with nascent business lines producing under $200 million in revenue, the revolutionary power of its radical consumer-centric model makes it a ubiquitous...
The Fallacy of the Shareholder-­‐Centric Business Model (January 2014)

The Fallacy of the Shareholder-­‐Centric Business Model (January 2014)

Executive Summary [divider_padding] Social Media is Creating a Revolutionary Force of Highly Connected and Empowered Stakeholders. Social media is empowering the former silent majority to: 1) influence, expose, and disseminate their views; and 2) self-organize and join forces on a common cause. Empowered Stakeholders Will Start Destroying Traditional Exploitive Economic Moats. The newly empowered base of consumers, employees, suppliers, citizens, and communities will soon start to take revenge and destroy the following traditional economic moats of companies that have profited at their expense: 1) Low-Cost Producer; 2) High Switching Costs; 3) Intangible Assets; and 4) Network Effect. The Social Revolution Will Lead to a Structural Shift in Companies’ Underlying Risk and Growth Profiles. The Social Revolution will create a high level of fragility for companies who derive their competitive advantage through exploiting their stakeholders, leading to a higher than expected risk profile and lower than expected growth profile. Negative Social Capital Needs to Be Factored Into the Valuation Equation. The current financial and valuation framework is misleading as it does not take into account the impact of a company’s Negative Social Capital on its future risk profile nor its growth prospects. *Please contact us if you would a like a copy of the research...
Retail Nirvana: The Keys to Capturing Customer, Employee, & Shareholder Value

Retail Nirvana: The Keys to Capturing Customer, Employee, & Shareholder Value

Keynote presentation at the 2013 Retail Executive Summit June 19, 2013 Speaker – Gary A. Williams, Founder & CEO, wRatings Corporation * With additional content provided by Barbara Gray, CFA, Equity Analyst, Brady Capital Research The level of differentiation from a product, experience, or service level in today’s retail environment can make the difference between success and failure. While innovation is important, the most successful retailers also have to execute better and understand more effectively their social ecosystem. In this dynamic session hear from Gary Williams, with additional content provided by Barbara Gray, as he highlights the business, social, and technology requirements that today’s retailers need to build value and succeed. Retail Nirvana The Keys to Capturing Customer, Employee & Shareholder Value from Greg...
Why Companies with a Greater Purpose Will Thrive in the New Social Era (April 2013)

Why Companies with a Greater Purpose Will Thrive in the New Social Era (April 2013)

Executive Summary Social Media is Creating a Revolutionary Force of Highly Connected and Empowered Stakeholders. Social media is empowering the former silent majority to: 1) influence, expose, and disseminate their views; 2) self-organize and join forces on a common cause; and 3) create new communities to enable learning, collaboration, and co-creation. A Greater Purpose Leads to a Stronger Stakeholder Ecosystem. We visualize the stakeholder ecosystem of a company like the root system of a tree, comprised of: 1) the seed – represents the ethos of the company and its purpose, or reason for existence; 2) the soil – represents the company’s core values and culture where the seed is cultivated; and 3) the roots – represent the community of the company’s customers, employees, and business partners, which reside in the soil and sprout from the seed to form the stakeholder ecosystem of the company. A Greater Purpose Leads to New Value Creation Opportunities. Social media is leading to the growth of secondary root systems as new relationship domains of consumers-to-employees, employees-to-partners, and consumers-to-partners emerge. Enlightened companies with a greater purpose will find themselves in an enviable position as they will be able to form communities that will allow them to access the following new Social Capital value creation opportunities: 1) advocate – benefit from the positive network effect resulting from word-of-mouth and interactions between and amongst its stakeholders ; 2) learn – use social media platforms to dynamically and interactively reach out to stakeholders to build learning communities focused around the passion for its greater purpose and the products/services it offers; 3) collaborate/co-create – social platforms create a new,...