What tesla and nflx shorts are missing⬇️
For tesla all e criticism around business model & cashflow are valid but misses a key advantage that Tesla has: first mover & category definer in EV. Tesla brand is one of the rare ones that provides meaning and appeals to psycho-logic,
For tesla all e criticism around business model & cashflow are valid but misses a key advantage that Tesla has: first mover & category definer in EV. Tesla brand is one of the rare ones that provides meaning and appeals to psycho-logic,
at the same time delivering a product that has top class tech. Owners of Tesla rave about the car, think about all the "gimmicks" that Musk throws in to create more "emotional" connection, the ludicrous mode to make driving fun (emotional response to brand & driving experience),
e wing doors that make u go: cool! Customers of tesla are part of a community that wears a proud badge that says "I'm doing my part to save the earth". Tesla is not just another car, Tesla provides meaning to your consumption (environmentalist), yet it is fun to drive & is cool.
Defining a category, securing a brand position in the customers mind is a very difficult thing to do. So the brand is an intangible asset and something bears are not valuing when criticising its model today. This is exactly what nflx shorts are missing as well. All the content..
..investment, putting money behind likes of Irishman is all but a brand building exercise. It is a process of educating customers to stay subscribed, because we have this and that released this month, next month and so on. Process of educating supply side that nflx..
..is the platform to come to, we will give you the resources and audience to make your vision become reality. And all of this intangible brand value is building without showing up on the financial statements in the short term. Like Tesla, nflx has defined a new category.
So what is nflx's brand identity? Providing an entertainment experience that is superior to existing forms, helping share stories from creators all over the world. Mission is to become TV. Everything they do has been consistent to this brand identity.
The greatest brands are built via persistent reinforcement of its value proposition year after year. Credibility is built this way, category defining brand is reinforced this way. Nflx has been consistent to its brand identity by continuing to invest to build the brand
and fortifying its implicit contract with customers. The compounding intangible brand value is what the bears focused on "cash burning content spend" are missing
