McDonald’s recent acquisition of the Tel Aviv-based AI startup, Dynamic Yield, is an exciting move, demonstrating that the 63-year old fast-food chain is looking for ways to stay competitive. Like many large enterprises, McDonald’s has long recognized the value in data, collecting large amounts of data on everything from tractions to customer behavior. However, data is only as valuable as what you can do with it. The acquisition of this new machine learning and AI technology demonstrates the company’s intent to put customer data to work.
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Vail Resort’s “Epic Pass” changed the ski industry when it was first released a decade ago–I would argue, for the better–even though it was directly coupled with massively more expensive day passes (sometimes 2x prior prices). Since it first launched in 2008, the pass has grown, and as a result, the pricing structure became more convoluted, with too many options to choose from. However, their latest update to pricing features a streamlined pricing structure and demonstrates how a well-crafted pricing strategy can evolve over the years.
Netflix raised prices $2 yesterday, and as a direct result, their shares added 6.5%. As a CEO, CFO, or controlling shareholder, wouldn't it be nice to do the same thing? Add $2 to prices and add $9.5 billion to your market capitalization? Move over Warren, I get the cover shot on Barron's this month.