Le Web London 2013 Analysis: Incumbents Eyeing Startup Success
Jeremiah Owyang, partner at Altimeter Group and a seasoned analyst in digital business trends, delivered a compelling keynote address at Le Web London. His focus was on the transformative potential of the sharing economy—a concept fundamentally disrupting traditional business models—and provided crucial insights for both startups and established corporations.
Key Message: The Double-Edged Sword of Disruption
Owyang illuminated that while startups are leveraging innovative ‘sharing’ platforms to challenge incumbents, large businesses face an evolving landscape where they themselves might adopt these strategies. This could potentially diminish the exit opportunities for promising startup acquisitions by traditional players.
The Duality of Sharing Economy Impact
Despite this looming imitation threat, Owyang emphasized a strategic opportunity:
- Barrier to Entry: Startups can gain significant market traction by collaborating with big corporations on sharing platform initiatives.
- Insight into Corporate Strategy: Major companies are beginning to recognize the economic potential of these models.
A Concrete Example: The Car’s True Value
To illustrate, Owyang pointed out the staggering economics: A single car sold outright might only be worth $270 in future auto sales. However, if that same vehicle is shared extensively throughout its lifecycle, it could potentially generate value equivalent to nine traditional car purchases. This highlights how sharing models can recontextualize asset valuation for established companies.
Strategic Imperative: Become a Service Provider
He further advised businesses:
- Shift Focus: Move beyond simple product sales towards service-based offerings.
- Platform Enablement: Create marketplaces that empower customers, similar to Airbnb’s approach. This allows users within your ecosystem to build value through shared interactions.
Lessons for Startups in a Changing Market
The implications are clear: As big corporations become more sophisticated about sharing economy strategies:
- Exit Landscape Evolving: Potential acquirers (like those at Altimeter Group) are increasingly knowledgeable, making due diligence more thorough.
- Collaborative Advantages: Partnering strategically with large players could offer alternative pathways to growth and market dominance.
Owyang’s perspective underscores the necessity for startups in this space to anticipate industry shifts and remain adaptable.
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