Doing it our way now: the approach this company pioneered is becoming the market's way
The model's full reasoning — Q2 2016 call → NOWe need to determine if management describes that others are adopting/copying the company's way of doing things, and that this validates the company's position. The transcript: Dan Coker discusses various businesses. He mentions that in heat vent systems, competitors have attempted to design their own systems, notably German luxury carmakers have their own designs. He says: "Several of our customers in fact have attempted to design their own symptoms, most notably some of the European German luxury carmakers have their own designs of heat vent systems. But in our view these are inappropriately placed in many of the high-end German luxury vehicles and we see that as a big opportunity for our heat cooled systems." This indicates that others (customers) have adopted or attempted to copy the company's heat vent approach. However, management treats this as an opportunity for their heat cooled systems, not as validation of their heat vent? Actually, they see the German luxury carmakers' own heat vent designs as inappropriately placed, and that is an opportunity for their heat cooled systems. That is not exactly "others following the company's lead" in a validating way. It's more like competitors have their own versions, but management sees that as a weakness and an opportunity. Also, they mention they have patents and enforce them, but that's about protecting IP, not about others adopting. Another part: "We have successfully enforced these patents in the marketplace and I think all of our competitors are very aware of our keen interest to protect our intellectual property and our ideas." That suggests competitors are aware, but not that they are adopting. The question asks: does management describe that the way the company does things is now being adopted, copied, or moved toward by others, and that this validates the company's position? The example of German luxury carmakers having their own heat vent designs is a form of copying, but management doesn't treat it as validation; they treat it as an opportunity to sell heat cooled. Also, they say "inappropriately placed" meaning they think those designs are inferior. So it's not a positive validation. Another possible: In the battery thermal management, they have a unique thermoelectric approach. But no mention of others adopting it.
| Ticker | Company | Call | Date | Call grade |
|---|---|---|---|---|
| AES | The AES Corporation | Q1 2024 | 2024-05-03 | C+ |
| GGR | Gogoro Inc. | Q1 2023 | 2023-05-11 | D |
| TGT | Target Corporation | Q4 2022 | 2023-02-28 | C |
| ORAN | Orange SA | Q2 2018 | 2018-07-26 | B |
| USFD | US Foods Holding Corp. | Q1 2018 | 2018-05-12 | C |
| SHOO | Steven Madden, Ltd. | Q1 2017 | 2017-04-21 | C |
AES · Q1 2024 → YESThe question is: Does management describe that the WAY THIS COMPANY DOES THINGS is NOW BEING ADOPTED, COPIED, OR MOVED TOWARD BY OTHERS IN ITS MARKET, so that the company's own way of doing things is ...
GGR · Q1 2023 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?
TGT · Q4 2022 → YESThe question is: Does management describe that the way this company does things is now being adopted, copied, or moved toward by others in its market?