Working for customers it could not have served a year ago: the company's deliverable capability just stepped up a class
The model's full reasoning — Q4 2022 call → NOWe need to determine if management conveys a capability step-change with all three elements. Let's analyze the transcript. Key candidates: Drive-Up returns, sortation centers, Ulta Beauty at Target, same-day services, etc. 1. Drive-Up returns: "we're announcing the next phase of our Drive-Up services with drive up returns, which started as a pilot last year and will be available across the chain by the end of the summer." This is a new capability, but is it already paying? It started as a pilot last year, and will be available across the chain by end of summer. So currently it's not fully rolled out, but pilot is underway. However, is it a step-change? It's an extension of existing Drive-Up. It's incremental. Also, it's not yet fully available. So probably not. 2. Sortation centers: "We delivered more than 25 million packages through sortation centers last year, and we expect to double that amount in 2023." This is a capability that has been built and is being scaled. But is it a step-change from a year ago? They had sortation centers before. They are expanding. The transcript says "we have nine sortation centers open across the country" and plan to have 15 by 2026. So it's an expansion, not a new capability. Also, it's already delivering packages, so it's not early? They expect to double, so it's growing. But is it a step-change in what they can do? They already had sortation centers. It's incremental. 3. Ulta Beauty at Target: "last year's sales from Ulta Beauty at Target were more than 4x higher than in 2021, and this growth was almost entirely incremental." This is a partnership that has been growing. But is it a new capability? They have been opening Ulta locations. It's not a step-change in capability; it's a partnership expansion. 4. Same-day services: "same-day services like Drive-Up are a great example. They grew nearly 7% last year" and "our average fulfillment cost per unit has come down 40% over the past four years." This is efficiency improvement, not a new capability. 5. The overall growth: "we've grown $30 billion since 2019" and "we're more than $30 billion bigger." That's scale, but not a specific capability. 6. The efficiency work: "we'll deliver $2 billion to $3 billion of cost savings over the next 3 years." That's future, not yet realized. 7.
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| HCKT | The Hackett Group, Inc. | Q1 2024 | 2024-05-08 | C |
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TGLS · Q2 2023 → YESThe question is about whether management conveys a new capability that they can now do something they couldn't do a year ago, that customers are paying for now, and it's still early. YES Management explicitly contrasts the new capability against the prior limitation: extra capacity now enables them to sell stand-alone architectural glass and aluminum framing products that were previously allocated to window production due to capacity constraints. This is a clear before/after step-change in the class of work they can accept and perform. Real customers are already paying for this new output: the transcript states they have a little bit more installation in stand-alone product sales the rest of the year, and they are now very well positioned to increasingly service large homebuilders’ customers as well as demand for the stand-alone aluminum and glass products, with the absorption of new capacity and ability to offer a wider range of solutions to customers described as positive overall.
TACT · Q4 2022 → YESThe question is: Does management convey that the company CAN NOW ACTUALLY DO SOMETHING that it COULD NOT DO ROUGHLY A YEAR AGO, and that REAL CUSTOMERS ARE ALREADY PAYING FOR THAT NEW CAPABILITY NOW, ...YES The transcript shows management describing a clear before/after step-change in casino and gaming printers: they could produce printers before, but now they have added a third line in Q3 and begun manufacturing on a fourth line in Q4, enabling them to meet demand and take market share that the prior competitor could not supply 12 months ago.
ZVIA · Q1 2022 → YESThe question is: Does management convey that the company CAN NOW ACTUALLY DO SOMETHING that it COULD NOT DO ROUGHLY A YEAR AGO, and that REAL CUSTOMERS ARE ALREADY PAYING FOR THAT NEW CAPABILITY NOW, ...YES Management describes the launch of single-serve 12-ounce cans as a first-time capability: “we began selling Zevia’s soda in single cans for the first time in a 12-ounce sleek format,” now “available cold in several grocery retailers” with “some of which is shipping now.