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Very thoughtful post. I have to say Dave leadership as inspiring...

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Surfguy

1,412 Posts.

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22/10/17

01:18

Post #: 28091652
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Originally posted by goldbear77 ↑

Morei continue to argue that the sensors arent the business - the functionality in the backend and client interface is the win

thats what creates client engagement - and once you have a client engaged at the decision making level they become yours to lose as a rule.

even when competitor offerings come along that mimic - you generally have a fairly long bleed time before competitve forces drive a re-appraisal by clients - in this case that moat is contractualised to 3 years

this is why first mover advantage is such a critical advantage in B2b commerce - whereas B2c tends to have far less stickiness - more competitors, more price competition and hence more vagaries

i'm all for competitive due diligence - but the level the discussion reaches everytime someone mentions competition dont seem to drill down very deep in term of actually understanding how business works - at least in terms of how i've experienced and observed it.

there will absolutely be competitors who mimic or have alterative approaches to the way BUD is capturing the user data and splicing/dicing and presenting it

but once you have significant client takeup those existential threats are significantly lessened and pushed out in time - giving a business time to consider and adapt to meet them

it took IBM and HP ~15 years to lose the business market dominance even after Dell came along - and those products were far less sticky than soemonething like the BUD platform - was purely on quality of reputation and decision makers comfort with the brands - despite being at least twice as expensive

the key in appraising BUD's medium/longer term competitve advantage clientelle will be to see whether it converts enough clients to form a competitve profitable business moat

certainly making the right moves in that respect but by no means certain just yet

i also believe an abiding competitive advantage is in the company DNA Dave M has etablished

he's got an all stakeholder centric focus - thats what many of you seem very attached to in your investment in the stock

well that flows through to how he thinks about the client engagement - which is great from my perspective because ive spent years advising and even combatting CEOs who often seem client or investor focused but not both - which always seemed just bizarre to me

so - if you like how he;s engaged with investors - i think you can have a level of confidence that clients will feel the same way and that solutions will reflect that

id always caution all investors against CEO hagiography - it blinds people

but i think thats a genuine strength in the business that should be considered when assessing how the business will be placed into the future

it obviously has to go much deeper than Dave M - but we dont see anyone else - so its natural that some people would attach all those attributes to him

even if it was only him that had this aptitude - Im confident he;d be engendering it within the business as they watch how he works

but i guarantee there are others with the same aptitudes and attitudes there as well

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Very thoughtful post. I have to say Dave leadership as inspiring as it is for shareholders would be doubly so for staff who are obviously aligned. Judging by the deals done so far customers and partners are also feeling the love.
Having a top quality CEO,a talented team and a nimble management are Buddy's strengths in these early stages of growth. As the company grows attracting good talent will be the challenge but that will be a nice problem to have.

BUD Price at posting: 22.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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