For a company to own its market, it must have some combination of brand, scale cost advantages, network effects, or proprietary technology. Of these elements, brand is probably the hardest to pin down. One way to think about brand is as a classic code word for monopoly.
But getting more specific than that is hard. Whatever a brand is, it means that people do not see products as interchangeable and are thus willing to pay more. Take Pepsi and Coke, for example. Most people have a fairly strong preference for one or the other. Both companies generate huge cash flows because consumers, it turns out, aren’t very indifferent at all. They buy into one of the two brands.
https://balance.ventures/wp-content/uploads/2018/08/charles-koh-607576-unsplash.jpg 1001 1500 Editor https://balance.ventures/wp-content/uploads/2018/07/Balance_Logo_Header.png Editor2018-08-07 19:30:112018-08-08 17:33:12What Peter Thiel taught Stanford University students about startup success