Ethan Aldrich

Brand is the only moat

AI has had me thinking a lot about moats in companies.

We’ve seen the memo from Google.

We talk about network effects, and customer love, pace of iteration, and more. All of these are tools for ones brand.

Companies and equity firms specifically utilize abstraction in brand risky businesses.

Budlight has fallen quickly to the number 2 spot when they angled their brand wrong. But this won’t matter to Annheiser Bush much at the end of the day. They have abstracted their brand.

LVMH maintains an abstraction if brands begin to weaken within their model.

In technology, brand traditionally becomes second to the importance of product, pace of innovation, and network effects. But these are simply tools one can utilize to maintain their brand.

Apple will sell anything they drop. Everything they do has a north star towards brand.

April 2, 2020  @ejaldrich