Threshold

The concept of Threshold is quite important. Estonia, due to the inconvenience of its ethnic language, decided to abandon it and conduct all university education in English. Uber disrupted the taxi industry because the experience with traditional yellow cabs was too poor, while Airbnb disrupted the hotel industry because the concept of staying in someone's home was not well understood. These examples show that when a certain Threshold is surpassed, new services are born.

In a tweet by Shunsuke Takagi on November 27, 2020, he mentioned the importance of Innovation and Exclusivity and Exploiting the Imbalance Between False Claims and Reality. He also referred to the concept of Selection and concentration from the book Good Strategy, Bad Strategy. According to the book, one of the reasons why concentration brings significant returns is the occurrence of the Threshold Effect. The Threshold Effect refers to the phenomenon where there is little change until a certain level (threshold) is surpassed, but once that level is surpassed, there is a sudden and significant change. In such cases, it is important to carefully select the target and concentrate resources. It is crucial to identify the elements on which leverage can be applied and allocate resources accordingly. It may also be important to establish a clear Threshold beforehand.