This year was full of so much business news about products, innovation and finance. Most true in technology with topics on IPO, leadership and the void in Steve Jobs passing; as well as points about design, marketing, customers. Let’s not forget about what constitutes IP protection in the Apple/Samsung titanic struggle of the rounded phone corners! And finally who is up and who is down, and their futures, notably, Apply and Microsoft.
Both LinkedIn’s relatively new Business Insider, Steve Ballmer’s Nightmare and WSJ 11/30/12 B5 page offered insights in a summary form that I can comment from.
As I commented on a LI post I’m excited by how much consumers are benefitting from all the technology innovation and the competitiveness among leading established players and relative new comers. The range includes MS and Apple, to Amazon, Google, FB.
New phones, pads/tablets, notebooks, entertainment, media are thriving and as consumers we’re benefitting on improved price, performance and value.
Leadership, research capabilities and the opportunity to advance various business models are in play.
I don’t believe economies benefit from a winning, dominant player. In fact there’s room aplenty for all the major players and many more to come.
Microsoft IS successful and will continue to remain so. They have so much cash, research capability, and an enormous customer base. Combine this with a management team driven to continue to build and grow.
Ditto for Tim Cook and his gang, the leaders of Google, and Amazon. Room for all.
I read with interest a Jeff Bezos Fortune cover story recently. The net impression was that he continues to take a long term investment view of building Amazon. During the dot com 90’s and early 2000’s this view was discouraging to the average retail shareholder as the stock languished and lost value especially if you were hyped into buying near its IPO days.
Bezos continues his approach. Each time the Amazon financials begin to look attractive Bezos takes another start up investment approach to the next Amazon growth opportunity. No time to catch your retail investor breath.
However, both the Amazon strategy and shareholder return in the last several years have been rewarded. Though at it’s current share pricing $252 and PE 3000; the indication is you and I need to be a 20 year investor to hope to have a reasonable return. Nonetheless, the company has a tremendous business foundation and prospects. But depending on your point of view it’s hard to figure out.
I believe there are great opportunities as well for MS, Apple, Google , Samsung for years to come.
I’m less certain for Facebook; see my earlier review… How Much is There, There?. The company appears to be the sad face of social media public companies: Groupon, Zynga, and FB are oversold disappointments.
Lots of great ideas, but in my view poorly mapped business models, leadership; conflated by IPO hype. It appears some of these companies would be better off returning to private status, away from the public scrutiny, to develop their technologies, customer insights, pricing and revenue models. And not be subject to retail investors angst.
I contrast this with the steady, quieter success of professional social media company LinkedIn. My most used media platform LI appears to know its professional audience, and model to secure revenues from a range of offer streams. Though at $108/share and a PE approaching 700 it’s rich for this value investor.
There’s been much to observe and learn in 2012 and I look forward to continued dynamism in 2013.
Peter Klinge, Jr. is an executive focused on growth strategy and execution for small to mid size companies. He accepts interim, board advisor, and project engagements with founders and CEOs.
