The best proxy that a company knows the loops of it and its market is whether they've ever done a full transition of their primary source of profit
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Replying to @kevinakwok
This is not right. First of all, take Blackberry. It's had to transition its source of profit completely, not because it understood its market, but because it didn't, until it was too late.
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Replying to @Molson_Hart
I thought implicit in this was doing it well. But yes I don't mean things that just die
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Replying to @kevinakwok
Okay contingent on the company not dying in the original market? Still don't think it's totally right. I can't think of any counterexamples that you'd recognize, but I can tell you from my own operational experience that this is not true.
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Replying to @Molson_Hart
Are you making the strong or weak counter? - strong: this is bad proxy - weak: this doesn't capture all of them
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Replying to @kevinakwok
I'm going to make the strong counter, because I think the best proxy is not this. The best proxy would be market share + gross margins + history. With that said, it's not a bad proxy.
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Replying to @Molson_Hart
I agree consensus is that's best metric. But I disagree. Because I think most companies historically that stumble on right loops don't need to understand them to win due to economies of scale or network effects. Good predictor for success. Not as great for do they understand it
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I have no idea what you're talking about because I don't know what loops are and it is not something I can figure out from google because there are too many different types of loops. Anyways, dude I'm going to go back to work. Limited reservoir of brain power per day.
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