Initiating Coverage on Obic, Japan’s Midmarket ERP Leader, With a Wide Moat Rating

Obic distinguishes itself in the Japanese IT sector through a strictly organic, self-sufficient strategy. Unlike competitors that act as general contractors managing layers of subcontractors, Obic develops, sells, and installs its own proprietary enterprise resource planning, or ERP, software, Obic7, using only its own employees. By controlling quality and accountability, Obic solves the biggest fear for midsize companies—implementation failure—thereby securing dominant market share and an industry-leading gross profit margin of nearly 78%.