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The Danger of confusing successful products with sustainable businesses

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The biggest danger in modern business strategy is confusing successful products with sustainable businesses. Hyper-growth abounds due to near-zero marginal cost, anchored by digital systems which are powered by the unbounded and unconstrained internet, confusing strategists tethered in the old-thinking that a Great Win has arrived.

One danger in the modern economy is companies confusing successful products with sustainable businesses. Listing off examples like GoPro, Groupon and Pokemon Go, Abbosh says explosive growth is not necessarily the signal of a long-term win that it once might have been. Social media makes it easier than ever for viral trends to take off, but also to be replaced, overtaken and erased. “The market doesn’t play out in a gentle S curve,” he says. “It’s more of a shark fin, with a sharp drop off. You have to realize when something is just a product. It’s not a business.” (Fortune newsletter)

Yes, ephemeral growth like the one experienced by Groupon can happen, easily replaced or overtaken, and possibly completely erased within a very short time. Groupon would have been a great product but not a great sustainable business – that distinction is important.

Groupon inside Google which wanted to buy it would have done well but a standalone Groupon business remains a bad idea.

This thinking should guide you when to sell that viral “product”-business over thinking you can build it and make it a sustainable business.

The Power of WE in ME

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If you write ME and then flip it vertically, you will see WE. If you take that WE, and flip it again, before you will be ME. You need a team to win market battles but even in that team, you have a singular responsibility. For every WE, we can extract ME, and from every ME, we can build WE. To be a team player, you must be a role player – and to be a role player, you must be team-built. ME overwhelms with problems, WE delivers solutions for markets.

 

The Farmers’ 40% of Bank of Agriculture, Nigeria

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A farmer prepares water channels in his maize field in Ngiresi near the Tanzanian town of Arusha on Tuesday, July 17, 2007. Millions of farmers around the world will be affected by a growing movement to change one of the biggest forces shaping the complex global food market: subsidies. Many experts agree farmers need help to grow food year in and year out, but Western farmers may get too much and African farmers too little. (AP Photo/Karel Prinsloo)

As Nigeria privatizes Bank of Agriculture, there is a call for farmers to come and acquire 40% of the shares. Bank of Agriculture, post-privatization, will be controlled as follows: 20% Central Bank of Nigeria, 20% Federal Ministry of Finance, 20% private sector and then the rest (40%) to farmers. Our minister of agriculture is asking farmers to take ownership of that 40%.  At N250 billion capital base, that is N100 billion for Nigerian farmers to come up with. It may be a challenging expectation but we will see. Please tell farmers in your village to get ready!

The federal government has appealed to farmers to prepare for the purchase of 40 per cent shares of the newly privatised Bank of Agriculture (BoA), to join in the ownership of the bank.

Audu Ogbeh, the Minister of Agriculture and Rural Development, made the appeal in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

Mr Ogbeh said that move would help to create a viable and virile farmers’ bank like their counterpart in the Netherlands and China.

The minister explained that the Central Bank of Nigeria (CBN) and the Federal Ministry of Finance would own 20 per cent capital each while the private sector and investors would have 20 per cent shares.

According to him, farmers will have 40 per cent shares.

[…]

The Director-General of BPE, Alex Okoh, had said that the privitisation process would be finalised in 90 days.

This is it – China takes over the earth

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This is it – China takes over the earth. I am happy that Nigeria is part of the new world order, running from Beijing. With 126 countries in the family of China’s Belt and Road Initiative (BRI), which gives real cash, over Western World’s credit line, Beijing begins its era. It is simple: the man with cash will always win the man with line of credit. You can accuse China whatever you want, more global leaders will book tickets in coming years to Beijing than any other global capital. Cash is KING.

The Deputy Chinese Ambassador to Nigeria, Zhao Yong, announced on Friday that over 126 countries and 29 international organisations had signed the China’s Belt and Road Initiative (BRI).

Mr Yong made the announcement at a news conference organised by the embassy of the People’s Republic of China in Abuja.

He said that the second Belt and Road Forum, held in Beijing, China on April 25 on “Belt and Road Cooperation: Shaping Brighter Shared Future”, was to promote the development of the BRI.

He quoted President Xi Jinping of China as saying that “China will implement BRI talents programme and in five years, offer 5,000 opportunities for exchange, training and research for participating countries.

According to him, great achievements have been made in pursuit of the BRI, since the past six years that Ping came up with the initiative.