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Exponent

Episode 182 — Scale Scale Scale

Exponent

Ben Thompson / James Allworth

Technology

4.6832 Ratings

🗓️ 28 February 2020

⏱️ 65 minutes

🧾️ Download transcript

Summary

Ben and James discuss the FTC’s decision to block the acquisition of Harry’s Razors, the DTC market, and the difference between being a monopoly and being too big. Links Ben Thompson: Apple’s Investor Warning, Foxconn’s Investor Warning, An Interview with Dan Wang — Stratechery Daily Update | Daily Update Podcast Ben Thompson: Email Addresses and Razor Blades — Stratechery Ben Thompson: Dollar Shave Club and the Disruption of Everything — Stratechery Ben Thompson: First, Do No Harm — Stratechery Ben Thompson: Netflix and the Conservation of Attractive Profits — Stratechery Ben Thompson: The Local News Business Model — Stratechery Ben … Continue reading Episode 182 — Scale Scale Scale

Transcript

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0:00.0

Hi, James. Ben, how are you? I'm doing well. How are you? Yeah, pretty good, though, a little bit nervous. The first reported case of corona in Northern California just hit, which was a little bit troubling. Yeah, coronavirus is a type of virus.

0:15.6

Oh, thank you. Oh, sorry. No, it's been a thing because I've been writing about it in trajectory for a while. And it's

0:20.8

interesting. I think that maybe there's been a benefit

0:22.8

of being in Taiwan. I think I've been a little bit of

0:24.3

ahead of the curve on this. You know, thinking about

0:26.5

interruptions supply chain and

0:28.3

one of the great things with daily update podcasts is

0:30.5

can have interviews. And interviews

0:32.6

can not just be like transcriptions, but they actually have people on there. And the first one I did was a guy named Dan Wong, who's in China and study supply chains. And so we had a great discussion about that a

0:41.7

couple weeks ago. And now I think you're starting to see that sort of seep out that this is

0:45.6

going to be a bigger thing than expected. I believe the official name is something in the lines of like

0:50.8

COVID-19. People call it novel coronavirus, which basically just means

0:54.5

new coronavirus, which isn't very helpful either. I don't know. We had SARS. We had MERS. I don't

0:59.8

know why we couldn't come up with a new sort of catchy acronym. I think COVID-19 is the working name

1:05.1

right now. Very good. Well, the first reported case in Northern California, so a little bit

1:10.1

nerve-wracking. But you're right,

1:11.8

it's been interesting to see this play out. And it was like what was discussed during that

1:17.3

interview. I feel like there's a chance that what happened in 2008 with a financial crisis,

1:22.6

like we're about to experience the equivalent of that on the supply chain front. But I guess we'll

1:27.4

see. We'll see guess we'll see.

1:28.0

We'll see. We'll see. My sense is, I think China is very focused on getting factories up and

1:34.2

running. I think there may be a sense that this is uncontainable or the time for containment was

...

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