OPW - Apr 25 - I came across this great article on sustainable competitive advantage by the V.C. company Greylock Partners. It got me thinking about Match Group. They're the clear leader in the dating industry now, of course. But what aspects of their business are contributing to their long term sustainable competitive advantage?
Let's look down the list that Greylock Partners' article lists...
- Network Effects - NO
- Scale - YES, ABSOLUTELY!
(i) Negotiated Leverage - YES
(ii) Amortization of Fixed Costs - YES
(iii) Product Density - YES, VERY SUBSTANTIALLY YES
- Brand - YES
- Non-Network Switching Costs - YES
- Regulatory - NO
- Technical Advantage - YES
- Cornered Access to Limited Supply - NO