Tag: Economic Moat

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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.

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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.

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Competitive Analysis of Amazon: Against The Blue Sky

Amazon Competitive Edge
  1. 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.
  2. 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.
  3. 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.
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Basic Investing Strategy: How to Win The Game

A basic investing strategy is about durability.
Investing is about keep walking, not sprinting, and quit
images source: freepik.com

Too Long Didn’t Read: for Basic Investing Strategy:

  1. In the long run, earnings and cash flow matter most.
  2. An economic moat – or technically, competitive advantage, is a factor that could preserve (or even grow) earnings and cash flow.
  3. Time plays an important role, a high number of ROIC is useless if it can’t last in the long run. Time becomes the test for ROIC.
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Competitive Advantage of Tesla: Chapter II

Source: freepik.com

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.

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