Why are you in business? Tesla vs. Rolls Royce

Why are you in business? Tesla vs. Rolls Royce

Why are you in business? To become a fashionista of the most exotic brand or create monetary value for shareholders, other things being equal. Rolls Royce, at market cap of $3.3 billion, is a lousy business, monetarily, when compared to Tesla’s $418 billion. Again, why are you in business?

Understand MVQ as you build.

The deal is this: the construct of quality has no meaning until the price of the product is put into considerations. I always ask entrepreneurs to build for the Minimum Viable Quality (MVQ) bounded by the product target price which market will respond. You can build rockets to fly around the world: that is an engineering possibility. But does that make a business sense if no one can afford it? Ask the makers of Concorde for answers.

That brings me to Glo and 9Mobile (nee Etisalat NG) services: Glo continues to grow with its highly affordable service while 9Mobile struggles even with better service but at higher cost. I am not saying that you do not have to pursue the best possible quality you can. My point is that any quality metric without a price construct is meaningless.

 

A Product Minimum Viable Quality (MVQ)

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