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Eric Siu breaks down which competitive moats actually protect a business. Brand works (Coca-Cola), switching costs work, process power works (Toyota, Tesla), and network effects work (Facebook, Instagram). Speed counts as a moat too.
Eric Siu breaks down which competitive moats actually protect a business. Brand works (Coca-Cola), switching costs work, process power works (Toyota, Tesla), and network effects work (Facebook, Instagram). Speed counts as a moat too.
If you had to pick, okay, what do you think the moats are right now? There's a great book I read called 7 Powers. And so here are the moats that I remember, okay? Speed is actually not included in that book. It should be included. One is brand. So Coca-Cola would be an example. I agree with that. I think that's actually the only moat left in marketing. Could be. Now you have another one, switching costs. So you see this, the more services you build in, if you can even do it at 70, 80%, that's still more superior than someone doing one service at 100%. Right. So switching costs, process power. I just mentioned Toyota. The reason why everyone's like, why is Toyota so successful? Why is Tesla so successful manufacturing their process power? Then you also have network effects. So you look at, you look at, you know, Facebook, Instagram or whatever, right? The more people use a network, the more powerful it becomes.
