Ep. 328: Go Vertical Or Go Home

Published: Feb. 18, 2020, 1:24 a.m.

b'Related TEK2day article: "Go Vertical or Go Home" (premium):\\nhttps://tek2day.com/2020/02/17/go-vertical-or-go-home/\\n\\nUnless your name is Amazon, Apple, Facebook, Google or Microsoft, it is best to pursue vertical go-to-market and product strategies. Only the previously mentioned Technology giants have the requisite scale to take a horizontal approach. We provide examples of \\u201cVertical Leaders\\u201d and \\u201cAt-Risk Horizontal Players\\u201d.\\n\\nTickers mentioned: ACN, AMZN, AAPL, AVGO, BOX, CCC, CRM, CSCO, CSGP, DBX, DDOG, FB, FDS, GOOG, IBM, INFO, INFY, MFGP, MSFT, NEWR, NOW, ORCL, OTEX, SAP, SPLK, SSNC, TEAM, TWLO, VRSK, WDAY, WORK\\n\\nIt is increasingly risky to pursue a horizontal strategy when the platforms giants \\u2013 Amazon, Apple, Facebook, Google and Microsoft \\u2013 are doing the same. For example, Apple invested $4.5 billion in R&D during the most recent quarter, Microsoft $4.6 billion and Google/Alphabet $7.2 billion. Quarterly R&D spend for these giants is larger than annual revenue for most technology companies.\\n\\nTherefore, we believe the best growth strategy for young technology companies is to build industry vertical expertise into products, services, user experiences and everywhere that domain expertise may provide your company with a sustainable competitive advantage.'