Millet Enterprise Moat is what the Internet marketing or high-performance configuration

The moat means to describe a competitive company, like an easy castle, in the towering walls of the city, there is a moat protected, so that competitors can not afford to cross these obstacles. So what is the moat of millet science and technology? This article comes from the answer of Netizen Panchin.

First of all, I think the corporate moat defined by Warren Buffett refers to the industry's leading companies. From this point of view, Millet is not in the "moat" theory of the scope of the discussion. I have seen the empty millet, but now I have to admit that the establishment of only 3 years of Millet has achieved great success and rapid growth, but unfortunately he is not yet a leading enterprise in the industry, it is not a http://www.aliyun.com/zixun/aggregation/of the beverage industry 8700.html "> Coca-Cola, nor is it said that shaving is associated with Gillette.

Although Millet now does not form their own moat, but can be based on Buffett's moat theory of a simple analysis of millet in which areas may build their own moat it?

Buffett's moat theory is roughly four aspects of enterprise analysis: intangible assets, customer switching costs, network effects and cost advantages.

The evaluation of the intangible assets of enterprises mainly depends on how much value they can create for the enterprise and its sustainability. From this point of view, the current formation of millet vermicelli culture for its creation of great value, but whether there is the sustainability of the future to be validated. One is the expansion of the fan group, the second is the loyalty of fans change. Strong intangible assets can make the enterprise has strong enough pricing power, from the current view, take the low-cost route, cost-effective route of millet in its user base has not yet pricing power.

Customer conversion costs are also highly correlated with user loyalty. Not only mobile phones, technology-type products are not high conversion costs. Even if the strength such as Apple, Samsung, also faced with several products after the loss of the possibility of users. Not to mention millet.

Of course, regardless of intangible assets or customer switching costs, I think the core is the product. From the word of mouth, millet 2 smaller meters 1 of the progress is very obvious, this is the cornerstone of the future sustainable development of millet.

The network effect on millet is a very interesting topic. "If the value of the product or service increases with the number of customers, then the enterprise can benefit from the network effect", the power of the Internet platform will magnify the network effect, Taobao I think is a typical case. Millet itself does not have a strong network platform, but Millet is currently the most understand the Internet mobile phone companies, but also the most understand the internet marketing mobile phone companies. Strong network resources such as Ali, 360 and so have tried to enter the mobile phone field, but obviously achieved and Millet gap is great. After all, they are not focused on the mobile phone business. Looking at the present, there seems to be no more than the network of millet resources, but also professional to do mobile phone business. Millet uses the Internet platform is also in the achievement of this network effect, especially its advertised and operating enthusiasts DIY MIUI. So, from this point on, this may become a moat of millet.

In terms of cost advantage, it is generally the most important to scale. Millet is growing rapidly, but the volume is not big enough. And millet does not own any core technology or components, millet if you want to gain more than a strong brand in the supply chain more cost advantages, in the short term is still more difficult. From the point of view of distribution network, although millet needs distribution, but compared to the traditional mobile phone companies in the physical store sales, in fact, the cost will be much lower, this advantage is more obvious.

Why does Buffett rarely invest in High-tech enterprises, because technology and technology products, brands change too fast, Jiangshan generation talent out, Yangtze, so High-tech enterprises difficult to establish their own moat. This is particularly true in the US, which is relatively good in China, and we are more marketing-driven than high-tech companies in the United States.

To sum up, millet future if can form a moat is more likely in its current best good internet marketing (including promotion, sales) on this piece.