Hamilton Helmer: preference

Transcript context

…Are you considering the international a separate business, or are you thinking about this as, should we expand the core business and just address a broader market? That's the question. The key thing there is if you have an established business, is the drivers of power in that extensible to that additional segment you're considering, whether it's geographic, custom, or whatever? Because if it is, the risk reward of doing it, the calculation in the beginning is so much better because being able to carve out value to yourself is really hard. If you can build on to something that already does that and it works in that environment, then oh, boy, go there, because that's so much easier than doing something really new. Netflix streaming in Korea, you're saying you can share content across countries. It built in the same fixed cost economics of content development, and worked. Uber, if they have a source of power, it has to do with geographical density in a specific area like the bay area or something. Going into China, if they're head to head with DD or something, they don't have any advantage at all. It doesn't work. They get to bring their technology platform over. They're amortizing all the engineering design product management cost, but they have to go reacquire both sides of the marketplace in full and create that density, which is actually the expensive part of the business.…

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