CAC40 vs GAFA

https://www.renault.fr/

Are the American (GAFA) or Chinese (BATX) tech titans really that far ahead of us? What is happening while our own companies quite rightly focus on sticking to their budgets and hitting revenue or EBITDA targets?

GAFA and BATX are slowly but surely nibbling away at our old continent.

#Travel

Airbnb has shaken up the entire hotel industry—including the flagship Accor, which is no rookie.

#Education

Apple and Samsung are already equipping our schools with their tablets, soon to become the cornerstone of tomorrow’s education in France and Europe. Sqool (a French player) is trying to stand out on its own, without any support from government or key industry stakeholders.

#Leisure

Vivendi—creator of the first video subscription 13 years ago—now “watches” Netflix and Amazon Prime spread across the globe.

#Automotive

Should we fear newcomers like Tesla, which for now still holds only a modest market share compared with Peugeot or Renault?

#Banking

While our banks—Crédit Agricole, BNP or HSBC—keep sparring among themselves, Apple rolls out the Apple Card (March 2019 keynote) and Revolut picks up thousands of new customers every day.

These are just a few examples, but the threat is real: Google, Amazon, Facebook, Apple are now rivalled by Xiaomi, Tencent, WeChat, Alibaba and Baidu—Chinese giants that conquered Asia and now target the rest of the world.

Yet French firms are far from short of assets… though those strengths can also weigh them down.

European and French companies share four golden assets that can just as easily turn into liabilities:

1. High-profile brands—but they may lack emotional pull.
   
   
2. A coveted customer base—but data still needs identifying and harnessing.
   
   
3. Expert teams—yet often unable to question their own modus operandi.
   
   
4. Plenty of capital—vast investment capacity that is sometimes underused.
   
   

Switching to a breakthrough-innovation mindset

Conquering new territories, markets and consumption patterns is almost impossible while still applying the same formulas that have worked for forty years. A break is essential.

Four rules to follow (in our view)

1. Be autonomous
   Launch new ventures in a wholly fresh environment, clearly distinct from the parent company. Recruit entrepreneurial talent who can bend the rules, operate on a different time scale and get done in two days what others take six months to achieve.
   
   
2. Embrace the unknown
   Innovation does not appear overnight. It requires a lengthy process and a change in mindset—even in DNA. Give entrepreneurs a goal, trust them and you will unleash creative energy. You never know what to expect, but one thing is certain: only the right entrepreneurs will take you to the summit.
   
   
3. Follow natural selection
   Failure is a normal step on the path to success. Launch several initiatives with limited resources; shut down those that disappoint after 12–18 months and double down on the ones that take off.
   
   

Team up
No one is ever fully prepared for these new adventures. Pool your skills and partner with dynamic entrepreneurs who can discover, detour and deliver—while leaning on their expertise to move faster.