Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Takes

Brand moats are undervalued by tech entrepreneurs compared to technology and network effects, but can be more durable in many industries

Spiciness
strategic_prediction

The Reasoning

Tech people understand measurable moats but dismiss brand because it's harder to quantify. However, brands can last centuries while technology becomes obsolete quickly.

What Needs to Be True

  • Products have emotional or status components beyond utility
  • Consumers care about heritage and story
  • Distribution channels reward brand recognition
  • Category has room for premium positioning

Counterargument

Technology moats can be more defensible because they create functional superiority rather than just perception

What Would Change This View

If AI commoditizes brand creation or if consumers become purely utility-focused

Implications for Builders

Don't dismiss brand-first strategies

Combine operational excellence with brand building

Think decades ahead for brand sustainability

Price for brand value, not just cost-plus

Example Application

Louis Vuitton founded in 1854 still commands premium pricing while most tech companies from even 20 years ago are obsolete.