(#101) Why Netflix is streaming online events? Why Jaguar tried a new strategy?
Financial Times: “EU to demand technology transfers from Chinese companies”.
It is the first time in 100 newsletters that I have sent this one day late. I had my reasons: sending the first book to print 😎
“Business Strategies.
Building Sustainable Models with Artificial Intelligence and Digital Platforms” - more about this and on the incoming website:
https://book.onstrategy.eu
Here is what early reviewers are saying about the book:
On to the update:
Financial Times: “EU to demand technology transfers from Chinese companies”.
1/ Ah, the European Union - a master class in overregulation, as if bureaucracy were an Olympic sport. The EU has taken bold strides in recent years, demanding intellectual property transfers, limiting foreign parts in green technologies, and even setting domestic production quotas for batteries. These policies sound innovative until you realize they resemble China’s playbook from the 2000s - except the roles have flipped. Back then, it was the EU wagging fingers at China for "unfair trade practices." Now, the EU mimics those tactics, determined to protect its industries and compete with the very same foe it once lectured.
2/ In the 2000s, European ingenuity thrived, propelled by a belief in open markets and technological leadership. Fast forward to today, and those liberal ideals are buried under mountains of protective policies. While China dominates EV supply chains and undercuts prices, the EU scrambles to keep up with heavy-handed measures that sometimes confuse industries more than help them.
3/ But let’s end on a high note: every crisis is an opportunity. If Europe can harness its unparalleled talent, blend regulation with genuine innovation, and focus on collaboration rather than isolation, it could redefine global leadership. Perhaps this overregulation spree is just the EU finding its footing in a changing world - a messy process, but one full of potential.
Let’s invent the Department of European Government Efficiency! LINK
On Netflix’s strategy to stream Mike Tyson vs. Jake Paul
I’m unsure if I can ever watch the Olympics and a game like this on streaming, but here is Netflix. I think I understand what the main reasons:
1/ Netflix leveraged the fight to create a "must-watch" cultural event, drawing 65 million global viewers at its peak. This event-based strategy is tailored to generate Fear of Missing Out (FOMO), appealing to non-subscribers who sign up to participate in high-profile shared experiences. The focus is on using these spectacles to attract a broader audience (ie. casual fans), differing from Netflix’s usual on-demand content designed for retention rather than acquisition.
2/ Streaming live events tested Netflix’s infrastructure, which is optimized for on-demand viewing. The event exposed limitations, including buffering issues and connection problems reported by over 100,000 viewers, emphasizing the complexity of delivering live content globally. Despite these challenges, Netflix likely views the event as a success given the record-breaking viewership numbers, akin to major televised sporting events.
3/ By integrating live events into its offerings, Netflix aligns with its broader goal of building an advertising business. While the Tyson-Paul fight didn’t feature in event ads, it included promotions for upcoming NFL games. Such events not only serve as marketing tools but also offer Netflix a testing ground for live advertising, potentially opening a new revenue stream while diversifying its traditional subscription model. LINK
Jaguar’s rebranding gone wrong
I think that Jaguar was inspired by Apple’s ‘Think Different’ ad, but the message and timing are totally different. Here are the reasons for their rebranding:
1/ Jaguar's rebrand moves away from its traditional association with heritage and middle-aged luxury car buyers, positioning itself instead as a youthful, progressive, and premium brand. The campaign, centered on "exuberant modernism," aims to resonate with younger, more liberal, and affluent consumers, aligning with its transition to an all-electric vehicle lineup by 2026. This represents a bold effort to redefine its market position amidst intensifying competition in the luxury electric vehicle segment.
2/ The rebrand notably excludes cars from its visuals, focusing instead on artistic and abstract representations of the brand's ethos. While this "rolling-thunder execution" generates initial buzz and sets high expectations, it has also sparked skepticism and backlash online, including criticism of its apparent disconnection from Jaguar’s automotive legacy.
3/ By shedding much of its storied heritage, Jaguar risks alienating its loyal customer base while seeking to attract new audiences. Industry experts recognize this as a high-stakes move, especially given the simultaneous reduction in Jaguar’s production of traditional vehicles. The campaign's ultimate success hinges on the ability to deliver on the new brand promise with compelling products, as failure to meet heightened expectations could have existential consequences for the company.
I remain skeptical. They need to deliver a product, not a campaign. LINK
Amazon is launching a Temu rival: Haul
Why is Amazon doing this? Well, pretty straightforward:
1/ Haul represents Amazon's effort to counter Temu, a rising competitor that has gained popularity with its low-cost, direct-from-manufacturer marketplace. By launching Haul, Amazon aims to capture the same price-sensitive segment of consumers who prioritize affordability over premium services, positioning itself against Temu's rapid growth and market disruption
2/ Amazon's use of AI-generated product images and other tools in Haul highlights its strategy to reduce operational costs and scale quickly. Despite the shortcomings of AI-generated images, which have resulted in poor visual quality and customer confusion, this approach underlines Amazon’s commitment to leveraging AI for efficiency in high-volume, low-margin marketplaces.
3/ Haul appears to test a different set of rules and standards compared to Amazon’s main platform. This includes allowing sellers greater flexibility, such as looser adherence to image quality guidelines. LINK
RotW: “Door-to-door saleswomen are fueling Shein’s rise in Mexico”
Shein succeeded in 5 years beating Inditex (Zara & co), respectively H&M. Here is another success on a target market - Mexico:
1/Shein and Temu have successfully penetrated the Mexican market by leveraging the established trust networks of catalog saleswomen. These intermediaries help address a significant barrier to e-commerce adoption in Mexico: mistrust in online shopping.
2/ The inclusion of Shein and Temu products by catalog sellers has inadvertently accelerated the decline of Mexico's traditional catalog sales industry. This is a broader trend where global e-commerce platforms outcompete legacy models by offering a vast inventory, lower prices, and more efficient delivery systems, leaving traditional companies struggling to adapt. Do you expect Zara to follow this strategy? Absolutely not, although they should.
3/ Shein and Temu have empowered catalog sellers, many of whom are women, by allowing them to diversify their product offerings and streamline operations. These sellers can bypass time-consuming in-person visits by leveraging online platforms and payment systems, improving efficiency and expanding their customer base. LINK
Essay 1. Manifesto: A hand to the “Little guys” is a hand to the future
In every industry, the “Little guys” represent the backbone of innovation, resilience, and economic growth. While giants and established players often command the spotlight and sway in policy and markets, the “Little guys” – small businesses, startups, local creators, and emerging entrepreneurs – are essential to a dynamic, healthy economy.
These independent entities operate not only under immense competitive pressure but also face increasing political and regulatory challenges. As the saying goes:
“You may not be interested in politics, but politics is interested in you.” In Europe, bad policies and restrictive regulations pose the greatest threat to the “Little guys.”
I believe in the power of the “Little guys” to drive real, transformative progress in industries ranging from technology and agriculture to retail and manufacturing. These smaller players bring fresh ideas, fill essential niches, and create local jobs. Supporting them should be a first-class political and social priority on par with other major economic issues.
It’s time to stand up for the “Little guys”.
We must ensure they have the freedom to create, compete, reach their customers, and build the future for themselves and their communities.
Hence, I recognize four support directions:
“Buy Local” initiatives. Encourage communities and consumers to support local businesses, reinforcing the value of creating value in your community/region.
Building Digital Marketplaces. Create and support platforms where smaller businesses can reach customers without unfair competition from larger players. (e.g. access to distribution)
Advocating for fair regulation. Promote policies that ensure regulatory burdens are scaled appropriately for smaller businesses.
Provide access to capital and resources. Increase access to capital from banks, PE, pension funds, VCs, and other private sources, but not government institutions.
I support or oppose policies and leaders based solely on their stance toward empowering the “Little Guys,” regardless of party or other political views.
For me, supporting the “Little Guys” is a support for the long haul. This means creating a vibrant economy, fostering innovation, and championing the underdogs who dare to build something new.
Together, we can pave the way for a future that includes opportunities for all, not just the big players. LINK
Essay 2. Read. Write. Get feedback. Think. Repeat.
One of the most underrated loops in personal growth is deceptively simple: read, write, get feedback, think, and repeat. It’s not a checklist; it’s a cycle. Each part feeds the next, compounding knowledge and sharpening your understanding of the world. This process isn’t linear – it’s recursive. And its power lies in repetition.
The first step is reading. Reading broadens the mind, not just in terms of facts but in understanding how other people think. Reading things that confirm your beliefs is tempting, but growth often comes from grappling with ideas that challenge you. When you read, you’re borrowing someone else’s brain for a while, inhabiting their logic and perspective. That experience alone rewires your thinking.
Writing is the next natural step. Writing forces clarity. It’s one thing to have an idea rattling around in your head; it’s another to articulate it in a way that someone else can understand. Writing is a mirror – it shows you the gaps in your thinking. “I’ve found that writing a lot leads to meeting people, and in-person discussions lead to more writing,” as one observer noted. The act of writing doesn’t just convey thoughts; it creates them.
But writing in isolation isn’t enough. Feedback is where the magic happens. Feedback isn’t about validation; it’s about iteration. You need others to point out what you’re missing, where you’re unclear, and where you might be wrong. The best feedback comes from experts in the field, but even a layperson’s fresh eyes can reveal blind spots. As Byrne Hobart put it, “The way to meet experts is to write something on their area of expertise that gets you past the not-a-moron filter.”
Thinking is the quiet work that binds everything together. This isn’t passive thinking – it’s active wrestling with ideas, interrogating your assumptions, and finding connections. Thinking is when you digest what you’ve read, the feedback you’ve received, and the words you’ve written, turning raw input into refined insight.
Then, you do it all again. Each cycle sharpens your mind, your voice, and your understanding. The beauty of this loop is that it’s infinite. There’s always something new to read, another idea to write about, fresh feedback to process, and further insights to uncover.
The hardest part is starting, but the rewards compound.
Read. Write. Get feedback. Think. Repeat.
It’s not just how you learn, it’s how you grow. LINK