Model importation

Model importation — building a business by bringing a model already proven at scale elsewhere into a market it hasn’t reached: the mall (Sy), budget airlines (Gokongwei), fast food out-executed (Jollibee), e-commerce (Lazada). The structural advantage: model risk has already been removed — demand and unit economics are proven — leaving only execution and localization risk, a categorically better package than invention. The two positions: outsider-with-capital (Rocket Internet) and local-operator-with-execution-depth; the second is the replicable one.

First used in: 5.7 · Emerging-market pattern arbitrage: the payoff skill