Competitive Advantage Archives

October 2, 2022October 15, 2022

Decision-Making to Avoid Mistakes: Misconception

Making mistakes may cost you more than your gain. Decision-Making to avoid mistakes is often overlooked. — Making mistake
source: Pinterest

Imagine this situation. You have a $1,000 investment and if this year you gain 50%, your money will be $1,500 – that is $1,000 plus (50%$1,000 = $500). The next year, the economy was bleak and affected your investment, so it lost 50%. Your money is $750, which is derived from $1,500 less (50%$1,500=$750). What is the message from this case? Your brilliance could be wiped out easily by mistakes. Decision-making to avoid mistakes should be a priority.

September 16, 2022September 17, 2022

Competitive Analysis of Starbucks: Behind The Experience

Competitive analysis of Starbucks results in CAPEX creating a high barrier to entry for both competitors and new entrants. — A cup of coffee is not the center of Starbucks’ business
source: Image by Pinterest
attribution:
1. Barista Preparing Drip Coffee In Local Coffee Shop Vector Design Images by Divektorin on pngtree

Howard Schultz, the CEO of Starbucks, has successfully transformed the coffeemaker into “the third place between your home and your work”. Could this business edge be replicated or competed? This is the central theme of our competitive analysis of Starbucks. We break down its financial report and marketing strategy to find the answer.

July 29, 2022August 27, 2022

Competitive Analysis of Amazon: Against The Blue Sky

Amazon Competitive Edge

Amazon Web Services (AWS) offers an intuitively easy User Interface, flexibility, affordability along with more features. But this isn’t enough to prevent its customer to use the competitor Microsoft Azure (or even Google Cloud) as a secondary cloud provider (as backup). This circumstance allows customers to migrate completely to AWS rivals.
Amazon is busy building economies of scope as a competitive advantage like its acquisition of Medical One, a telecare company, instead of creating or strengthening its cloud ecosystem.
In the long run, we believe the market share of AWS could be slightly eroded gradually by more intense competition due to a lack of switching costs. We think Amazon should take care of this issue seriously, especially when the cloud is its most prolific segment.

June 21, 2022June 24, 2022

Basic Investing Mistakes: Lesson from Body Goals.

The basic investing mistake is the method and the unrealistic goals. — Some methods end miserably
images sources: freepik.com

Pursuing your body goals and your investing target may share similar problems. No, it’s not the technique or the knowledge. It is misinformation and belief about…that misinformation. These two compose the building block of basic investing mistakes.

May 6, 2022June 9, 2022

Netflix’s Competitive Advantage is Losing?

Netflix's Competitive Advantage is decaying due to the competitors don't need to make money. — Source: Freepik

If we inspect carefully the number of subscribers lost, actually Netflix is just fine. The streaming giant only lost 200 thousand subscribers from a total of 221 million. It is a tiny fraction, less than 0.1%. It is no big deal. Netflix said that number comes from 700 thousand losses due to Russian things. If we neglect Russia – Ukraine number, Netflix has an additional 500 thousand subscribers. Not bad. Far from it. Case closed. So, why we are here? To address a more important issue: Netflix’s Competitive Advantage.

April 15, 2022April 15, 2022

Competitive Advantage of Tesla: Chapter II

The third quarter of 2021 illustrates the competitive advantage of Tesla due to its integrated business. In the midst of a chip shortage that trims the production of almost all automakers, Tesla still breaks the record in terms of production units. This article is the sequel to talk about Tesla’s economic moat that discussed brand power, direct sales, and low-cost producer.

April 8, 2022April 15, 2022

Economic Moat of Tesla: Musk’s Relentless Effort

source: freepik.com

Tesla surely leads the way for the next-generation vehicles. It has the most advanced battery, most covered charger facility, cool car, price advantage, and strong brand. We will take a closer look at those aspects to get a better insight into the Economic Moat of Tesla.

November 21, 2021January 1, 2022

CAPEX Analysis: Scale, Barrier, and Growth

In 2019, Novartis – in its search to become a gene and cell titan, built a manufacturing facility through a 90 Billion CAPEX, setting the bar high for the entire pharma industry. It is the reason why CAPEX analysis is crucial.

CAPEX analysis includes how the company expands its business and at the same time remains competitive in its field. — Amazon’s scheme in CAPEX

October 20, 2021February 15, 2022

Competitive Advantage of Airbnb: Could It Last

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With pandemics begin to fade – Thanks, God – people mobility will be unlocked. Travel-related companies like Airbnb will enjoy the momentum. But, could it grip the advantage in the long run? To answer that question, Today we give you insight into the competitive advantage of Airbnb.

September 5, 2021September 15, 2021

Tech Branding Strategy: Temple of Modern God

Tech Branding Strategy is about how the company looks like for a tech company

What is the important element for a browser? Speed, Of course. User Interface? Check. What else? We would say… name. In 2012, Microsoft lost in browser war not only for its sluggish browser but also for its name. Internet Explorer isn’t sexy at all. Firefox is a better name, it reflects speed and energy, like Chrome. The first move of the tech branding strategy isn’t about introducing them to the public. It begins with building the brand, including the name, identity, and characteristics they represent.