{"id":2984,"date":"2016-06-16T00:01:45","date_gmt":"2016-06-16T04:01:45","guid":{"rendered":"http:\/\/terrencemetz.com\/?p=2984"},"modified":"2026-04-21T13:33:30","modified_gmt":"2026-04-21T17:33:30","slug":"customer-moat","status":"publish","type":"post","link":"https:\/\/mgrush.com\/blog\/customer-moat\/","title":{"rendered":"\u201cCustomer Moat: Unveiling the Secrets of Business Strategy\u201d"},"content":{"rendered":"

Eddie Sung (Author) has released an easily readable book, Customer Moat: Unveiling the Secrets of Business Strategy<\/span>, that some might call a primer.<\/h2>\n

Although his discussion does not break new ground (like \u201cBlue Ocean Strategy<\/a>“), he brings life and enjoyable reading to the basics of profit-building, illustrating the complex interrelationship of customer voice mixed with market factors that lead to profit. Thus, his story builds the analogy of a \u201cmoat\u201d serving to isolate customers from competitive choices and alternatives.<\/span><\/p>\n

His experience derives from a family-owned retail business and his rhetoric<\/a> is biased by simple decision-making. Readers from more complicated commercial, industrial, and institutional environments may lack an easy conversion to their complex reality of multiple purchasing voices and influences within one customer organization. However, Eddie provides an excellent series of end notes and bibliography to both support his claims, thus making it easy for you to dive deeper based on your own, discrete scenario, and customer moat perspective. Therefore, his primary thesis builds upon eight \u201ccustomer moat builders\u201d including (alpha sort):<\/span><\/p>\n

\"\u201cCustomer

Customer Moat\u00a0Protection<\/strong><\/span><\/p><\/div>\n

    \n
  1. Branding<\/strong><\/span><\/li>\n
  2. Cost<\/strong><\/span><\/li>\n
  3. Distribution<\/strong><\/span><\/li>\n
  4. Location<\/strong><\/span><\/li>\n
  5. Networking<\/strong><\/span><\/li>\n
  6. Scale<\/strong><\/span><\/li>\n
  7. Supply<\/strong><\/span><\/li>\n
  8. Value<\/strong><\/span><\/li>\n<\/ol>\n

    (Part One)<\/h3>\n

    The early premise provides a clear compendium of his MBA background and research.\u00a0 His explanation that customer moats impact market share, profit margin, and price is basic, although nicely illustrated.\u00a0 This section provides more value in growing and retaining a customer base than it does in providing insight into acquiring new customers and markets.\u00a0 He stresses \u201c. . . how businesses hold on to their customers.\u201d through operations, scale, positioning, and control.\u00a0 He concedes later \u201c . . . it is better to foster repeat customers. . . keeping existing ones is often more cost-effective.\u201d and \u201cThe main purpose of the Brand moat builder is not to get new customers per se but to keep existing customers returning.\u201d<\/span><\/p>\n

    (Part Two)<\/h3>\n

    His detailed discussion about the eight customer moat builders remains vibrant and research-supported.\u00a0 While some of his examples are classic business tales (e.g., Ohno\u2019s Five-Whys at Toyota), his writing style keeps the reader engaged as the pages turn quickly.\u00a0 However, he again primarily illustrates his claims with simple retail examples including 7-Eleven, Amazon, Costco, Krispy Kreme, McDonald\u2019s, Southwest Airlines, Starbucks, Toyota (automobiles), Walgreens, and Wal-Mart among others.<\/span><\/p>\n

    His discussion on Network Effect (Scale) provides some of the freshest material and does not pre-supposes that he has the answers, he does offer up some excellent questions<\/a>:<\/span><\/p>\n