Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
HI all,
Newbie here so please be patient!

I have been crunching numbers for CNS and while I like the numbers I am concerned a little about exactly where its competitive advantage is (ie moat)

I have come up with the following summary:
Postive Competitive Advantage
1. Dominant player in segment (but small in industry)
2. Habitual purchase/ Brand name
3. Strong focus on particular market segment
4. Patent protection (but dont know many details here)

Negative
1. High threat of substitutes (esp for the sprays and tablets)
2. No real barriers to entry
3. Low switching costs (for customers)
4. Buyer power high (think chains and distributions)

The strategy adopted by CNS appears to be one of focus, which is very appropriate given the products.

Conclusion
I think there is a mid level competitive advantage for the nasal strips, but I see very little competitive advantage for the sprays and fibre tablets. This may impact the growth rates I use in my calculations.

Please feel free to add any comments

Elmatto
Who lives in Singapore and finally saw a Breathe Right strip last week after months of looking!


Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.