Economies of Scale Archives

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
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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.

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

November 7, 2021November 7, 2021

Economies of Scale as Durable Competitive Advantage

Economies of Scale could give certain advantages to a company, and it depends on how the company achieves it. — Level of Economies of Scale by How it translates to Company advantage

Being a market leader is not always translated into a durable competitive advantage. This post will talk further about economies of scale as a durable competitive advantage. What is a common mistake regarding the economy of scale as an economic moat? How does economies scale create a layer of protection for business? We are here to answer this moat question.

November 4, 2021November 4, 2021

Competitive Advantage of Amgen: November Update

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The competitive advantage of Amgen, like any other pharma company, lies in its patent. We invite readers to take a look at this issue – deeper.

August 11, 2021September 3, 2021

The Economy of Scale Analysis: Physical to Apps

In Moat versus growth investing, companies could be classified into growth categories or moat categories. Investors need to be very careful in this field. — Economy of Scale
source: freepik

Online-ing physical business doesn’t necessarily translate into financial profit. Teladoc, Uber, Doordash, and even the European counterpart Justeat Takeaway¹ still recording losses. Investors may believe once economies of scale are reached – the long-awaited profit will be materialized. Here we perform an economy of scale analysis to get deeper into that issue.

even when we expand the territory to the Asia Pacific, the result will be the same [↩]