Estee Lauder, domain dependence, & moats
alexbrogan.beehiiv.com
Estee Lauder, domain dependence, & moats
Startups with moats and strong defensibility factors had a higher chance of becoming billion-dollar companies. Defensibility comes in many forms: deep engineering, partnerships, data, brand, network effects, and, as Keith Rabois said, accumulating advantages. Defensibility does not mean that no one can copy a company. There are lots of examples whe
... See moreThese companies grew their brands back when it was easy and cheap to do it the old-fashioned way. These brands maintain their lead, blocking newcomers who don’t have the same vacuum to fill.
No one knew that I ran both clubs. I had a lot of fun keeping the secret. I had even more fun watching both clubs succeed. And I learned a valuable lesson: you can compete with yourself and win. It was a lesson that, a decade later, would spawn Clinique and would eventually inform the thinking behind The Estée Lauder Companies’ portfolio of brands.
In this world, there is an abundance of products, and every industry becomes far more competitive.
How can a startup survive in this environment? The answer is deceptively simple: Have good taste.