Thursday, March 24, 2011

Lumosity is a Star Business

Lumosity provides brain training solutions using video games. Here's why I think it's a star business:

- Target market (of baby boomers) is growing very rapidly and will need to rely on such solutions to stave off problems like Alzheimer's, dementia etc.
- As they collect more and more data about their players they get into a very powerful position and the monopoly effects become more pronounced.
- There is potential for new markets (school children, cancer patients, executives etc.) and new devices (iPod, iPhone, Android, Nintendo Wii etc.)
- They are relying on a large scale trend of more and more people playing video games ... except that it is with a twist (play video games while actually triggering meaningful improvements in your mental capacity.)

Of course, they seem to be doing a lot of things right (name is good, positioning is clear, differentiation is becoming deeper with more games being added)

A brilliant star business with excellent long term potential. Even Warren Buffet may actually invest in this business.

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