1/ Simba: "Have we asked Disney for a cut of Lion King revenues?
Mufasa: "Disney has all the pricing power. They can use erasers to make us disappear any time."
Simba: "Pricing power?"
Mufasa: "The critically important ability to set higher prices without losing customers."
Mufasa: "Disney has all the pricing power. They can use erasers to make us disappear any time."
Simba: "Pricing power?"
Mufasa: "The critically important ability to set higher prices without losing customers."
2/ Simba: "During my internship at Liberty people quoted John Malone saying things like 'It may be that Disney captures the profit but for now cable's got enough pricing power in broadband to make up for that.'”
Mufasa: "Malone rolled up cable with scale-based pricing power."
Mufasa: "Malone rolled up cable with scale-based pricing power."
3/ Simba: "What creates pricing power?"
Mufasa: “It’s your alternatives that matter. Every business is constantly scanning the world trying to get its opportunity cost as high as possible. Opportunity cost is a huge filter."
Simba: "You're quoting Munger!"
Mufasa: "Exactly."
Mufasa: “It’s your alternatives that matter. Every business is constantly scanning the world trying to get its opportunity cost as high as possible. Opportunity cost is a huge filter."
Simba: "You're quoting Munger!"
Mufasa: "Exactly."
4/ Simba: "How I can a learn about pricing power?"
Mufasa: "'Getting to Yes' has this idea of BATNA that's helpful. But you spent all your money on OnlyFans. Tren's free book 'The Global Negotiator' is your best alternative. Pages 86-88 and 131." Link at 25iq.com/wp-content/upl…
Mufasa: "'Getting to Yes' has this idea of BATNA that's helpful. But you spent all your money on OnlyFans. Tren's free book 'The Global Negotiator' is your best alternative. Pages 86-88 and 131." Link at 25iq.com/wp-content/upl…
5/ Simba: "Pricing Power isn't something carved into Pride Rock. How can you increase it?"
Mufasa: "Tren's 25iQ post about Waffle House discusses Michael Porter's three strategies for achieving proving power: cost leadership, differentiation and focus." 25iq.com/2017/10/28/a-d…
Mufasa: "Tren's 25iQ post about Waffle House discusses Michael Porter's three strategies for achieving proving power: cost leadership, differentiation and focus." 25iq.com/2017/10/28/a-d…
6/ Simba: “Munger would say "invert!" What do you avoid to keep pricing power?”
Mufasa: "Porter advises to not get “stuck in the middle,” which almost guarantees low pricing power. In the middle you lose customers who demand low prices and yet also fail with high-margin sales."
Mufasa: "Porter advises to not get “stuck in the middle,” which almost guarantees low pricing power. In the middle you lose customers who demand low prices and yet also fail with high-margin sales."
7/ Simba: “What about Disney? Differentiation?"
Mufasa: "Yep. John Malone, the Lion King of the cable lands, says: "If you have a direct-to-consumer relationship, with scale, with growth, and you have pricing power. It's a very powerful business model." cnbc.com/2019/11/21/cnb…
Mufasa: "Yep. John Malone, the Lion King of the cable lands, says: "If you have a direct-to-consumer relationship, with scale, with growth, and you have pricing power. It's a very powerful business model." cnbc.com/2019/11/21/cnb…
8/ Simba: "Disney+ direct to consumer relationships sound like a moat."
Mufasa: "You see connection! If the purpose of a moat isn't to increase pricing power, what exactly is its purpose?
Pricing power in a value chain is determined by the relative scarcity created by moats."
Mufasa: "You see connection! If the purpose of a moat isn't to increase pricing power, what exactly is its purpose?
Pricing power in a value chain is determined by the relative scarcity created by moats."
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