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"the naive approach to moats focuses on the cost of switching; in fact, however, the more important correlation to the strength of a moat is the number of uniqu
by aworks 10mo ago
"the naive approach to moats focuses on the cost of switching; in fact, however, the more important correlation to the strength of a moat is the number of unique purchasers/users."
- esafak 10mo agoI was not able to find any research that posits that moat strength is determined by customer diversity. I think customer diversity correlates instead with resilience.
- deleted 10mo ago[deleted]
- Jyaif 10mo agoI would say that customer diversity may be a marker of past resilience, and likely results in moat. Customer diversity says nothing about current or future resilience.
- caminante 10mo agoAuthor isn't non-financial, but the "moat 2.0" doesn't feel right. > More than anything, though, I believe in the market power and defensibility of 800 million users, which is why I think ChatGPT still has a meaningful moat. It's 800M weekly active users according to ChatGPT. I keep hearing that once you segment paid and unpaid, daily ChatGPT users fall off dramatically (<10% for paid and far less for unpaid).