Capital Executive LLC amazonaws com
Capital Executive LLC
[Type here]
Investment Research Angie’s List (ANGI)
Ken Copley 4920 Valley View Ln West Des Moines, IA 50265 515-222-9102 [email protected]
Bill and Angie Angie’s List 1030 East Washington St. Indianapolis, IN 46202 Dear Bill and Angie: During the latest conference call, Bill made the following comment: “We certainly want to be … very leery about giving away our service.” The reluctance to give away the consumer membership is understandable. But think of it this way: you’re building a market! Why is Facebook (FB) so valuable? A market capitalization of ~ $181 billion! Different target market than ANGI. But the principle remains the same. FB serves the people by connecting the people. FB builds their market by serving the people, currently at 1.2 billion memberships. This membership represents a significant market to monetize through advertising and electronic commerce. But the creation of significant value in the market is predicated on first building the market! In an economic transaction, there is a consumer and a service provider. ANGI should serve one side of the economic transaction, which creates incredible value for the other side, making it easier to sell ANGI in the market. In fact, the greater the value created from one side, the greater the value extracted from the other side. For ANGI, serve the targeted, consumer membership, because the service provider has deeper pockets in the economy and offers the greatest, economic opportunity in the market. Selling the ANGI service to both sides of the economic transaction reflects a very successful, local-market strategy. But for a national or a global strategy, a local-market strategy becomes too complex to manage efficiently, because it frequently alienates one side or the other side of the economic transaction. This makes it more difficult to sell ANGI in the market, because it produces confusion within the position of ANGI in the market. The revenue lost from the consumer membership fee represents a minuscule fraction of the value created for the service provider by simply increasing and organizing the market for the service provider. What you lose from the consumer membership fee you more than gain from the value you create for the service provider. Compare the relative performance of YELP and ANGI since their IPOs. Basically the same type of business – just a different target market. Which organization created significant value for the shareholder? As an investor, Capital Executive LLC only wants to help ANGI create significant value for ANGI. Please fully consider the investment research: ANGI – The Market Argument. By only making slight modifications in the market, ANGI could create incredible shareholder value and generate a very attractive return for the shareholder. For more information about Capital Executive LLC, visit the website listed below. Ken Copley Capital Executive LLC
www.capitalexecutive.net
Investment Research
3/3/2014
|
Portfolio Management | Business Development
[Type here]
Investment Research Angie’s List (ANGI)
Ken Copley 4920 Valley View Ln West Des Moines, IA 50265 515-222-9102 [email protected]
Bill and Angie Angie’s List 1030 East Washington St. Indianapolis, IN 46202 Dear Bill and Angie: During the latest conference call, Bill made the following comment: “We certainly want to be … very leery about giving away our service.” The reluctance to give away the consumer membership is understandable. But think of it this way: you’re building a market! Why is Facebook (FB) so valuable? A market capitalization of ~ $181 billion! Different target market than ANGI. But the principle remains the same. FB serves the people by connecting the people. FB builds their market by serving the people, currently at 1.2 billion memberships. This membership represents a significant market to monetize through advertising and electronic commerce. But the creation of significant value in the market is predicated on first building the market! In an economic transaction, there is a consumer and a service provider. ANGI should serve one side of the economic transaction, which creates incredible value for the other side, making it easier to sell ANGI in the market. In fact, the greater the value created from one side, the greater the value extracted from the other side. For ANGI, serve the targeted, consumer membership, because the service provider has deeper pockets in the economy and offers the greatest, economic opportunity in the market. Selling the ANGI service to both sides of the economic transaction reflects a very successful, local-market strategy. But for a national or a global strategy, a local-market strategy becomes too complex to manage efficiently, because it frequently alienates one side or the other side of the economic transaction. This makes it more difficult to sell ANGI in the market, because it produces confusion within the position of ANGI in the market. The revenue lost from the consumer membership fee represents a minuscule fraction of the value created for the service provider by simply increasing and organizing the market for the service provider. What you lose from the consumer membership fee you more than gain from the value you create for the service provider. Compare the relative performance of YELP and ANGI since their IPOs. Basically the same type of business – just a different target market. Which organization created significant value for the shareholder? As an investor, Capital Executive LLC only wants to help ANGI create significant value for ANGI. Please fully consider the investment research: ANGI – The Market Argument. By only making slight modifications in the market, ANGI could create incredible shareholder value and generate a very attractive return for the shareholder. For more information about Capital Executive LLC, visit the website listed below. Ken Copley Capital Executive LLC
www.capitalexecutive.net
Investment Research
3/3/2014
|
Portfolio Management | Business Development
