# Firefall Enterprise Plan FY3 S2 # Summary ### Dream Junwon Company will be a conglomerating company that houses brands. ### Tactic 1. Make a brand then make it a 1P distribution channel by winning the trust of customers. 2. Use 1P distribution channel to distribute 1P products. 3. Use gained assets to empower more brands. ### Roadmap 1. Make a new brand called Lacasa that caters to homemakers. 2. Grow distribution power on online forums by publishing posts about technological products are useful to homemakers. 3. Also publish posts about 1P AI apps that are useful to homemakers. 4. Make more 1P brands at much lower costs by leveraging gained assets such as technological infrastructure, operational processes, and partnership deals. 5. Let 3P brands join us so that they can leverage our assets as well. # Why ### On conglomerations Consider the options. Option 1: A single brand. A company can focus on operating a single great brand. Example is Coca-Cola. Coca-Cola makes and sells its characteristic black sugar water. Coca-Cola is a great business on its own, but its impact is limited simply by its own disinterest in growing its impact. If we want to have a small impact in the world, this option works. Otherwise, we need to find a way that will help us grow our impact even further. Option 2: A conglomerating company segmented by operations. Example is Samsung with Samsung Electronics, Samsung Insurances, and Samsung Construction. Brand (therefore distribution power) and capital are leveraged across businesses. For example, insurance customers might choose Samsung Insurance over other choices simply because they trust phones made by Samsung Electronics. But operations are not leveraged significantly across businesses. After all, an expert who specializes in making electronic display components will not be very useful in the insurance business. This method is effective in markets where technology has not finished maturing. In such markets, technology matters more than customers. A young boy and an old lady are both forced to purchase a Samsung phone because Samsung phone is objectively the best in objective comparisons. But what happens in a market where technology has finished maturing? Let us examine the fashion industry as an example. If the utility of a bag is to hold items, then a $1K Christian Dior bag is not superior in utility to a $10 tote bag from Trader Joe’s. Yet, customers who bought $1K Christian Dior bags are happy and satisfied. In this market, market leader is the company run by Bernard Arnault, and that company owns 75 separate brands. Unlike companies in Samsung, these 75 companies have big overlaps in operations. There are many brands that sell hand bags, many that sell jackets, many that sell watches. Why is this conglomerate not segmenting by operations? Why not have an Arnault Bags company and then an Arnault Apparels company and then an Arnault Watches company? And the reason is a conglomerating company must segment in a way that lets each segmented entity best focus on the operation that matters the most. And advancing the technology to make the best bags or apparels or watches is not the most important activity in these markets where technology has finished maturing and therefore no business can have any technological superiority over another. In such markets, the activity that matters the most is understanding customers and getting understood by customers. It is connecting with customers. And each connection with a set of customers is a brand. Option 3, a conglomerating company segmented by kinds of customer, is the most effective form of a company in markets where customers matter more than technology. ### On software Then why are we trying to use option 3 in the software market which traditionally has been the single prime example of a market driven by technological advancements? In fact, people first think of software, along with electronics, when they hear the word “technology industry”. Well, even if others are considering software industry to be a market in which technology matters more than customers, we take a contrarian perspective. We think the software industry will soon become more like the fashion industry than the electronics industry. Generative AI is advancing at an accelerating pace, bringing down the cost of developing software products at an exponential pace. It is inevitable that all software brands will be able to produce perfect utility at trivial costs, thereby making it impossible for any one brand to outcompete another based on utility. Just like the fashion industry today. And then what matters the most in the industry will be brand. We want to be a big company that can benefit many people thanks to our big size. So we plan to become a company that can benefit each additional “brand” in our portfolio thanks to having other brands and thanks to having developed processes to operate those other brands and thanks to the total scale we can be operating at thanks to having all the brands. This is why we want to make Junwon Company be a conglomerating company that houses brands. # Starting Point One day, Junwon company will have many brands, and each brand will be catering to a specific set of customers. Today, we will start by making our first brand: LA brand that caters to homemakers. We will make a profile called @sisterlacasa on online forums, then relay to homemakers all the information that we discovered and think will be good for them. Then, the homemakers will be able to understand that @sisterlacasa brand is promising them that the brand is thinking about what is best for the homemakers then keeping its promise again and again all the time. We will start informing homemakers about private brand products we made for them. The products we make will indeed be best for homemakers since we will be thinking specifically about homemakers all the time. We will guide customers to follow a ladder getting more and more utility from us at reasonable prices. Whereas we will be choosing to invest back the money we got into helping other people, the customers we have been serving will keep getting more and more from us per dollar they choose to pay us. This is how the ladder will work: 1. At a low fixed cost, we will operate a LA CATALOG that writes useful information once for a single “set” of customers, aka homemakers, then let them use it for free. A single click on the link in the post on online forums posted by @sisterlacasa must show them utility immediately. 2. At a high fixed cost, we will operate an advanced version of LA CATALOG. Customers will pay us a price for this high cost version. It needs to be $28 using today’s cost, but we will try to bring the cost down to $9.99. 3. We will give more apps to paying customers “for free” such as LA CAMERA. 4. We will make paying easier by giving them the option to either keep paying us $28 for 4 weeks or use it for free by keeping a $1825 deposit with us. 5. We will leverage assets such as AI models in order to operate more brands for more customers, not just for more 1P brands we create, but also for 3P brands that want to join us. We are now going to start by making the brand then trying to connect with customers on online forums. And then we will be making software products for them. But as we work on daily tasks, let us remember the tenets from this plan: 1. Focus on “brand for customer” not “operation we do”. Lacasa is the brand for homemakers. That’s what matters. Homemakers must know that Lacasa is everything they need, none more, none less. If homemakers need something, we give them the something. There is no such thing as “Lacasa is about the operation of developing AI apps, so we are not going to help you on what is not related to developing AI apps.” Trust me. This will pay off. Also, segmenting by brands instead of operations might make us re-do some operations in each brand. But that is okay. Just re-do it if needed. It will be easier and easier to re-do the operations in a market where operations will become trivially easy thanks to maturing technology. 2. Invest heavily in shareable leverage tools. We want to be operating multiple brands in the future. So when we are making a tool that can be used for other brands later on, invest effort to make it well. 3. Invest lightly in whatever can be done later better cheaper with the technology of the future. For example, if we are betting on Generative AI getting better and better at translating our product specifications into working programs, then write the product specification well, but do not spend too much effort correcting the generated programs. Learn to work not against but in line with the flow. May we get to benefit many people by operating many brands! --- See [Firefall Branding Plan FY3 S2](Firefall%20Branding%20Plan%20FY3%20S2%20191dac7d3ab780298374c8ce85d91f9f.md) and [Firefall Products Plan FY3 S2](Firefall%20Products%20Plan%20FY3%20S2%20191dac7d3ab780b695d2c52923a9c50b.md). --- - On “Firefall” naming This season, I got to visit Yosemite and see the Firefall. Firefall is a natural miracle that looks like a stream of fire falling off the cliff of the El Capitan rock. It happens because all following events happen in perfect concert at one specific moment in a year: - A small waterfall forms at a specific point at the top of El Capitan only temporarily merely due to snow from preceding winter finally melting. - Sun during this season sets at a specific angle such that the final ray of sunlight shines only upon that small waterfall and nowhere else in the entire Yosemite Valley. - If the sky is clear that day, then the sun ray will become smaller and redder as the sun approaches sunset, until it becomes fully red and only shine that waterfall, and nowhere else in Yosemite Valley. If all those events happen, then spectators get to see the Yosemite Firefall: an appearance of a glowing stream of red fire shining El Capitan with its own red flame. The way I see it, our plan is quite similar. For a brand to succeed, we need to be lucky in multiple angles at once: - People must be interested in a topic. - AI must be able to provide useful information on that topic such that people can really feel the significant benefits of AI. - AI must be able to present that information in formats that are engaging to audience and supported by information distribution channels. - Information distribution channels must correctly relay our information to our audience. - We must be able to find a way to operate our business sustainably such that our customers can benefit from us indefinitely. If all these events happen successfully, then I think the outcome deserves to be called a miracle. By the way, it is important to note that Yosemite Firefall happens every single year. It is a miracle but it is a miracle that happens reliably. I have faith that we can make our miracle happen, and make it happen reliably by our own talent. We shall be lucky, and moreover, we shall make us lucky again and again, without fail, reliably. That is what I mean when I say we aim to make a company that will keep on creating and operating brands that get trusted and loved by the customers. And that is why I think the name “Firefall” fits this plan very well. - Ideas for future brands - A brand for homemakers - A brand for beauties (+ fitness, health) - A brand for tasters - A brand for parents - A brand for hikers - A brand for city life lovers - A brand for travelers - A brand for students - A brand for workers (+ productivity)