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Short-term success may be driven by exceptional execution; long-term value creation requires building a defensible model.
And so if someone like me or Brad says that there is no such defensible model, we must be engaged in a "rant", treating these people unfairly.
People like Kantoos or Tyler Cowen start from the presumption that when people with the right credentials, like Cochrane, or Jean-Claude Trichet, or Robert Lucas make strong statements, that they must have a defensible model behind their assertions.
The trend with FX [foreign exchange] is it will go very low, or zero, and I think the bank of the future needs to offer FX at basically zero, but it's very hard to build a defensible model around zero price, because once you have, where do you go?" Where you go is where the distinction between plans and possibilities comes in.
Creating a defensible model of value is the key to avoid being beaten down in price.
However, it is important to define realistic alternative strategies and to have an informed and defensible model structure as this is likely to impact on the cost-effectiveness.
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What we are strongly advocating is the necessity for theorizing, for constructing plausible and defensible models of how programs can be expected to work before evaluating them" (p.285, [ 11]).
"With the arrival of Schwartz, who's long been a champion of open source, you can see they are trying to build a defensible business model," said Brian Behlendorf, chief technology officer at CollabNet, one of the earliest Java developers.
Houston argues that the company has an extremely defensible business model, starting with its existing customers.
But a broader opportunity exists: using the data of payments to build a more valuable, more defensible business model, one not dependent on fees.
So, the co-founders (and cousins) decided to focus on raising money from investors that could help them build a defensible business model in Brazil, no easy feat in spite of the growing national interest in eCommerce.
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