Don’t Get Dollar Shave Clubbed (Part 2)
In my last essay, I illustrated how treating your product as the value proposition can be a costly, long term mistake. I visualized this in a Business Model Canvas and in it I mostly focused value proposition, key resources, channel and revenue streams.
Startups do not scale to a billion dollar acquisition on a YouTube video alone. To avoid getting Dollar Shave Clubbed, you’ll need to understand the new trends in decentralization and globalization.
This organizational structure made sense back in the industrial era and we’ve carried it forward into modern organizations. We are no longer in the industrial era though and the cost of owning all of these activities comes with a much higher cost than before.
Razor companies have largely been ignoring the implications of everything and everyone being constantly connected. They viewed the internet as merely another marketing channel to add to their, already expensive, marketing strategy.
They’ve built an seemingly impenetrable bait and hook business built on industrial era thinking.
Tip #6: Consider Decentralization
In the past 5 years, we’ve seen the internet become much more than a marketing channel. We’ve also witnessed how a startup can scale very quickly without owning inventory.
- Uber doesn’t own any vehicles
- Airbnb doesn’t own any real estate
- And Dollar Shave Club doesn’t own any razors
This is an important aspect of being Dollar Shave Clubbed.