Hamilton Helmer

It was that you were able to exploit that.

Right.

So examples like that, they plug completely into the power structure of the current business.

So, you know, high switching costs stuff, right?

And so that they can deploy it to all their customers and get the same economics of high switching costs.

I understand.

Do you want to add to that?

Right.

And so that's why if you have switching costs, the key strategic challenge is to acquire customers when the cost of a customer does not fully arbitrage out the profit stream that you would expect from them.

So I think sort of a non-obvious point of all this is that if you're thinking of doing something new, getting into stuff, that understanding business definition is critical.

Which is to say, into what areas does your current power umbrella extend?

You got to understand that.

Then the next one is the point that Chen Yi made, which is that expansion into areas where that umbrella extends is radically more attractive than starting something utterly new.

Oh, that's a really important point.

Absolutely.

You're failing if you don't exploit it.

Right.

Because you can assume that eventually somebody else will, and that may completely ruin your competitive position.

And for example, if it's based on scale.

So point one.