mpav wrote:I should add, no retail operation truly has a moat....to much competition.
bailey wrote:Here's an article why Kevin O'Leary likes Teranet.
http://www.theglobeandmail.com/partners ... ranet.html
investor99 wrote:Retailers certainly can have moats. Why?
Very well known ingrained brands create moats. For example Tim Hortons is such a fabulous brand, has the best locations, and has such a large portion of market demand that it absolutely deters other companies from having the desire to enter the industry. Who wants to start up a coffee, lunch and baked goods chain in Canada?
Wal-Mart has created a moat through excellence in supply chain mgmt. and pushing prices to the lower limit.
It is harder to creat a moat as a retailer or maker of retail products but it is doable.
investor99 wrote:...do you believe the Coca Cola (KO) has a moat?
investor99 wrote:mpav, do you believe the Coca Cola (KO) has a moat?
My logic for CNR or TRP is that to compete with them you have to build an infrastructure that is virtually impossible. The reason we have rails, is the governement/shareholders sank tonnes of money at a loss to build, no one could do that now.
mpav wrote:investor99 wrote:mpav, do you believe the Coca Cola (KO) has a moat?
I actually do not agree that Coke has a moat. But in truth our definitions of moat are likely very different.
My logic for CNR or TRP is that to compete with them you have to build an infrastructure that is virtually impossible.
investor99 wrote:In a lot of cases in Canada though isn't it COTT
brad911 wrote:lol....who do you think makes those "cheaper" no-name drinks?
Just because it doesn't have "Coca-Cola" written on the can doesn't mean KO isn't profiting from individuals buying that product. I think many people would be surprised at the amount of generic revenues that many manufacturers receive from generic brands.
Even if they're not manufacturing the generic brands themselves those alternate companies are using KO's supply chain and distribution system to get those products to market. No one will do that for free - its for a fee
mpav wrote:My logic for CNR or TRP is that to compete with them you have to build an infrastructure that is virtually impossible.
mpav wrote:So in the above examples, we would have to have a complete shift to replace them (stop using natural gas, new paradigm in how things are shipped).
mpav wrote:But my point around moat is how much competition you have, not how well you perform against it.
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