PubertyMaxxer
Face, Height, Frame, Dick
- Joined
- Oct 15, 2019
- Posts
- 14,606
- Reputation
- 18,430
WHICH COMPETITIVE ADVANTAGES?
Strategic analysis should begin with two key questions: In the market in which the firm currently competes or
plans to enter, do any competitive advantages actually exist? And if they do, what kind of advantages are
they?
The analysis is made easier because there are only three kinds of genuine competitive advantage:
Supply. These are strictly cost advantages that allow a company to produce and deliver its products or
services more cheaply than its competitors. Sometimes the lower costs stem from privileged access to
crucial inputs, like aluminum ore or easily recoverable oil deposits. More frequently, cost advantages
are due to proprietary technology that is protected by patents or by experience—know-how—or some
combination of both.
Demand. Some companies have access to market demand that their competitors cannot match. This
access is not simply a matter of product differentiation or branding, since competitors may be equally
able to differentiate or brand their products. These demand advantages arise because of customer
captivity that is based on habit, on the costs of switching, or on the difficulties and expenses of
searching for a substitute provider.
Economies of scale. If costs per unit decline as volume increases, because fixed costs make up a large
share of total costs, then even with the same basic technology, an incumbent firm operating at large
scale will enjoy lower costs than its competitors.
BRUTAL Business Blackpill : Marketing Budget is everything
If you own the customers ( best example are online platforms like amazon & onlyfans) you can gradually increase Quality by paying cheap STEMcel PhDs
Customer Captivity ( MARKETING) + Local ( either geographic like Albert Hijn Supermarket in Netherlands or in product space like Ultraspecialized BioPharma Companies ) Economies of Scale are the most sustainable way of achieving a MOAT
Focusing on Efficiency and Quality doesn't come close
@disillusioned @AlexAP @IHateMyself @Digital Hitler
Strategic analysis should begin with two key questions: In the market in which the firm currently competes or
plans to enter, do any competitive advantages actually exist? And if they do, what kind of advantages are
they?
The analysis is made easier because there are only three kinds of genuine competitive advantage:
Supply. These are strictly cost advantages that allow a company to produce and deliver its products or
services more cheaply than its competitors. Sometimes the lower costs stem from privileged access to
crucial inputs, like aluminum ore or easily recoverable oil deposits. More frequently, cost advantages
are due to proprietary technology that is protected by patents or by experience—know-how—or some
combination of both.
Demand. Some companies have access to market demand that their competitors cannot match. This
access is not simply a matter of product differentiation or branding, since competitors may be equally
able to differentiate or brand their products. These demand advantages arise because of customer
captivity that is based on habit, on the costs of switching, or on the difficulties and expenses of
searching for a substitute provider.
Economies of scale. If costs per unit decline as volume increases, because fixed costs make up a large
share of total costs, then even with the same basic technology, an incumbent firm operating at large
scale will enjoy lower costs than its competitors.
BRUTAL Business Blackpill : Marketing Budget is everything
If you own the customers ( best example are online platforms like amazon & onlyfans) you can gradually increase Quality by paying cheap STEMcel PhDs
Customer Captivity ( MARKETING) + Local ( either geographic like Albert Hijn Supermarket in Netherlands or in product space like Ultraspecialized BioPharma Companies ) Economies of Scale are the most sustainable way of achieving a MOAT
Focusing on Efficiency and Quality doesn't come close
@disillusioned @AlexAP @IHateMyself @Digital Hitler
