Every business can be replicated, we are living in free markets. Anybody can make a soap and compete with HLL or make noodles to compete with Nestle. That does not make HLL or Nestle worthless.
It is small cumulative advantages which creates moat for a business. A website itself is a brand, particularly in e-commerce business. Relationship with hundreds of vendors and thousands of customers itself is an advantage. Efficient inventory management, and understanding of customers need is an advantage. A group of young engineers creating a business from scratch, without much financial backing is management quality, which is in itself an advantage.
Do they have competitive advantage? Well ROCE/ROE figures are quantitive proof of competitive advantage a business is enjoying, at least in the present times. What will happen in future- well nobody knows.
| Subscribe To Our Free Newsletter |
