Widest Moat Contest: General Electric, Microsoft, or Coke?
The three finalists in the Widest Moat Contest are General Electric (GE), Microsoft (MSFT), and Coca-Cola (KO). The tally so far: Microsoft (2), Coca-Cola (1), General Electric (1). Your vote could make the difference. Vote by clicking the “comments” link at the end of this post.
MarketWizWannabe votes for GE:
Basically, every “product” business that GE is in has a moat – aircraft engines, plastics (think, lexan), locomotives, nbc, power systems (turbines / nuclear systems), and healthcare (MR / CT products). They’re #1 or #2 in all of those products worldwide. That’s a pretty wide set of moats, and it gets my vote.
S. Chin votes for Coke:
My vote is for Coke. GE’s and Microsoft’s moat keep enticing a lot of competitors. Everyone wants to “extend” their brand into their markets like Google, Yahoo or Oracle. Microsoft is the incumbent, but there’s so many people knocking on their door. Same with GE — their financing division also has people reducing their margins and attacking them. NBC always has new lineups from FOX, CBS and cable. When is the last time someone tried to extend in the cola industry successfully. Snapple, Gatorade all tried, but never became a serious threat to the whole franchise. Although, there’s private label items – Coke continues its dominant market share, with a product that 1) does not become obsolete or outdated and 2) requires huge capital investments to produce. Plus, Coke’s has a longer track record… it has several World Wars and recessions under its belt and still going strong. Coke hands down.
Henry votes for Microsoft:
Out of the final 3 companies (GE, Coca-Cola, Microsoft), I’d like to vote Microsoft as having the widest moat. Their monopoly in multiple areas in the software industry is phenomenal. In addition, many people still aren’t aware that they are the biggest R&D; spenders in the industry as well. Microsoft today is no longer a pure software company and will expand rapidly into other areas.
Grant votes for Microsoft:
General Electric has the best managers in the world, Coca-Cola, one of the best brands, but what about Microsoft? It has a complex product with a large installed user base. It is not the fact that its product is complex that digs the moat, but that its intricacies are engrained with so many users.
If you are looking for a turbine, household appliance, or TV channel there are alternatives to suggest. Want a cold non-alcoholic beverage? There are some choices. Suggest to your company to stop using Windows and Office and you would be laughed at. That may be granting too much. The majority of people in the office work environment most likely cannot even imagine using a computer without Microsoft’s products.
Let us know what you think.
Who’s right? Who’s wrong? And which company has the widest moat?
Vote by clicking the “comments” link below.