Sources of Value

Aside

 

A very simplistic framework to think about the kind of Strategic advantages a firm can have. This has been taken from an excellent paper titled Measuring the moat written by Michael Mauboussin and i have rearranged it in a tabular format.

 

Firm specific

Value created = Willingness of buyer to pay – opportunity cost of supplier

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“Simplicity is the ultimate sophistication” – Leonardo Da Vinci