"ZERO to ONE" by Peter Thiel Book Review

1. PRESENTED BY:
1. SIDDHESH DABHOLKAR PM-02
2. RUCHITA DHANAWADE PM-03
3. POOJA KUKREJA PM-09
4. CHHAYANGI REVDEKAR PM-21
5. SHUBHAM MANTRI PM-35

2. ABOUT THE AUTHORS
PETER THIEL
He is a Author of ZERO TO ONE
He is a German American entrepreneur and billionaire
He is also cofounder of PayPal and palantir
He studied at Stanford university
Initial large investor of facebook
BLAKE MASTERS
He is a Co-Author of ZERO TO ONE
President of Thiel foundation
He studied at Stanford law school (J.D.)

3. ABSTRACT
MARK ZUCKERBERG BILL GATES
LARRY PAGE AND SERGEY BRIN

4. Party Like it’s 1999
 Make incremental
advances
 Stay lean and flexible
 Improve on the
competition
 Focus on product, not
sales
 It is better to risk
boldness than triviality
 Bad plan is better than
no plan
 Competitive markets
destroys profit
 Sales matters as much
as product

5. TWO TYPE OF
PROGRESS

6. VERTICAL
HORIZONTAL
THE TWO TYPES OF PROGRESS
HORIZONTAL PROGRESS ( 1 to n)
Single word for horizontal progresses
globalization . E.g.. China
This type of progress bring convergence
and more sameness
Globalization without technology is
unsustainable
VERTICAL PROGRESS (0 to 1)
The single word for vertical progress is
technology
Any new and better way of doing things is
technology

7. What valuable company is nobody building?
Valuable company = Create value + Capture value.
160 billion
50 billion 21% more
profit
“No company makes economic profit”
“If you want to create and capture lasting value , don’t build
an undifferentiated commodity business”

8. Economics v/s Peter Thiel

9. Value of business today = value of earnings in the
future
E.g.. Twitter vs New York Times
Twitter 24 billion $ valuation (2013 IPO) = 12 * NYT market cap
WHAT EXPLAINS HUGE PREMIUM FOR TWITTER?

10. Characteristics of a monopoly :
Proprietary technology (10 times better than any existing solution)
Network effect
Excellent Branding
Building a monopoly:
Start with niche market
once you dominate a niche market expand to adjacent markets
stop disrupting start synergizing

11. IF YOU BUILD IT, WILL THEY COME ?
 Start-ups should care about sales just as much as they care about
the product.
The distribution is the bottle neck for a business.
 CLV (Customer Lifetime Value) > CAC (Customer Acquire Cost)
 Viral Marketing
 A product is viral if it encourages users to make others users too
 This is cheap and fast
 At PayPal, users were paid to sign up, and paid when others they referred signed
up.
 One of these methods is exponentially more effective than another

12. You are not a lottery ticket
To win, have definite optimist
OPTIMISM
PESSIMISM
INDEFINITE
OPTIMISM
DEFINITE
OPTIMISM
DEFINITE
PESSIMISM
INDEFINITE
PESSIMISM
DEFINITE INDEFINITE

13. Pareto Principle
(80-20 Rule)
Less gives more .
It doesn’t teaches us to not work
 Focus on those thing which gives maximum result

14. In reality, the investor should focus on the few superior compan
ies that get exponential results.
Peter Thiel's initial investor of
Facebook
GI specialist Other specialist
20% 20%
Input
80% 50%

15. Will machine replace you?
 Men and Machines are good at different things
.
 “Computers are Tools, not rivals”
 Complementary Business
• Machines can be used as complements to a human’s job my allowing more efficient
actions to be performed.

16. Seeing Green
Being a small fish in the big sea is not a good approach.
 The most successful companies start with the goal to dominate their niche
market before entering into harder and larger markets.
 Just think of Facebook that started up as a network just for a single campus.

17. 7 Questions every business should answer:
1.The Engineering question
2.The Timing question
3.The monopoly question
4.The people question
5.The distribution question
6.The durability question
7.The secret question

18. conclusion
Building to
monopoly by
focusing on niche
market and great
product
Scale up
letter on
Protect your
monopoly
Focus on
building zero
to one

20. References:
 Book: Zero to One by Peter Thiel and Blake Masters
 https://medium.com/@Stefania_druga/zero-to-one-my-
summary-of-peter-thiel-s-book-bbb1e3676457
 https://www.gobankingrates.com/personal-
finance/september-11-attacks-destroyed-u-s-interest-rates/
 https://www.youtube.com/watch?v=5ksVshqVuiM