Australia's largest stock trading and investment forum Australia's #1 stock forum

BUD

0.00%

0.6¢ buddy technologies ltd

Ann: Buddy partners with Digicel to sell and distribute Buddy Ohm, page-64

First 64 Last

Share
Profile

Follow
Quanta

11,703 Posts.

1077

18/07/17

12:52

Post #: 25928643
Share

Originally posted by goldbear77 ↑

these comments about consumer electronic IoT products forget the recent past. in fact they sound exactly like what people were posting 18 months ago - basically they are the vanilla ioT concepts all the magazines were talking about 2-3 years ago

the company has just been through a learning curve about spreading itself too thin - it originally did what you are suggesting and chased the IoT horizontal (ie. thinking of IoT as the solution and everything IoT as being potential sales markets)

the lesson learnt - which i forecast it 6 months ahead of the Dec strategy shift - was that a small company needs to focus on an industry vertical - preferably one where it has an edge.

When you only have small sales group and you are selling a product people dotn even know they want yet - you have to have a sharp sales offering. That means industry specific solutions.

BUD needs to stick to 'smart cities' vertical where it can build out a brand seen as having a competitive advantage and a raft of relationships and sales channels that are mutually synergistic

Go chasing things like car IoT and theyll get lost as just another behind the scenes brand getting stomped by Apple/Google/GM/ etc etc

IoT backend systems really isnt a unique competence in and of itself.

A company that just provides an undifferentiated backend IoT data storing and analysis package only has relatively limited brand protection against new entrants competing for market share.

What becomes 'differentiated' and a powerful protection for margin and marketshare is building a perception of expertise in one specific industry or area

Im not saying all the various front end products like cars, fridges etc cant eventually feed into a BUD platform

But I am saying that shouldnt be a priority or area of capital spending - they can be a passive opportunity that can be integrated if opportunities naturally occur - but not what the company should chase at this stage of its lifespan

BUD will grow fastest and most safely building up products the appeal directly to the 'smart cities' buyer groups.

there will be natural consumer electronics buying at the fringes - as is already occuring with Ohm - and over time that can morph into serious business units on their own

But chasing it now and BUD will get lost in the massive number of IoT wannabes and tech majors all trying to move into that space

Though of course if BUD ends up developing a key expertise that gives it a unique generalised IoT offering - then by all means the broad consumer electronic ,mass market is a great place to go.

I just dont see it at this point in time.

Expand

I agree with you 100%.

I was not referring to consumer products but industrial products. Smart cities, logistic & transport monitoring, energy and water industries to name a few that come to mind.

BUD Price at posting: 14.8¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

BIO

Biome unveils three year revenue target up to $85M – but are 3Y targets enough to excite?

IVZ

Invictus banks US$5M from Zimbabwean investment fund in support of Cabora Bassa

BOE

$550 million Jabiluka uranium offer comes unstuck as Government rules lease won't be renewed

PAM

PAM secures high-grade Chilean copper play in strong territory

AZL

Brine and shine: Arizona Lithium wins early stage eco approval to commence wellpad #2 at Prairie

There are more pages in this discussion • 50 more messages in this thread...

First 64 Last

Add BUD (ASX) to my watchlist

Ann: Buddy partners with Digicel to sell and distribute Buddy Ohm, page-64

Top Stories

Biome unveils three year revenue target up to $85M – but are 3Y targets enough to excite?

Invictus banks US$5M from Zimbabwean investment fund in support of Cabora Bassa

$550 million Jabiluka uranium offer comes unstuck as Government rules lease won't be renewed

PAM secures high-grade Chilean copper play in strong territory

Brine and shine: Arizona Lithium wins early stage eco approval to commence wellpad #2 at Prairie

Featured News