What is LY Corporation's biggest competitive advantage compared to its rivals? Is it user scale, data assets, or parent company support?

Okay, let's talk about where LY Corporation, this behemoth, truly excels.

That's a great question. It’s like asking what makes a championship-winning team: is it the star players, the tactical system, or the wealthy club owner? Honestly, they all matter, but there’s always a fundamental cornerstone.

In my view, LY's biggest competitive advantage is its massive, near-monopolistic user scale.

Data assets and parent company backing are certainly their "nuclear weapons," but both are built upon the foundation of "user scale."

Think of these three elements as layers in a "treasure hunt":

1. The Core Foundation: Massive "Users" are the Treasure Map Itself (User Scale)

This is the hardest moat to replicate. Think about it: in Japan, almost everyone with a smartphone uses LINE. Your family, friends, colleagues, clients are all on it. To reach them, you have to use LINE. This creates an immense "network effect," an invisible web that traps everyone. New competitors, no matter how good their product, find it incredibly hard to convince hundreds of millions to collectively "move house."
Full coverage of life scenarios. Beyond LINE, they have Yahoo! JAPAN. Japanese people rely on Yahoo for news, weather, shopping, auctions, navigation... This means LY Corporation penetrates nearly every facet of an ordinary person's daily life. From checking the news upon waking to chatting with friends before bed, you're operating within the palm of its hand.

Simply put: User scale is like a mall occupying the most central, convenient location in the city. Whatever it sells, foot traffic is inherently guaranteed. Someone trying to build another mall next door to compete? Good luck.

2. The Magic Touch: Mining "Data Gold" from "Users" (Data Assets)

More users naturally generate oceans of data. It's like a bustling mall: the owner knows which stores people frequent, what they buy, and peak traffic times.

Knowing you better than you know yourself. LY knows what you searched on Yahoo, what you discussed on LINE (using anonymized, non-private data analysis), what you paid for with PayPay... Combining this, they can paint a strikingly clear user profile.
Surgical accuracy in ads & recommendations. Knowing you recently searched for "camping gear"? They can precisely show ads for tents and sleeping bags on Yahoo! Shopping and LINE. This level of efficiency and conversion is unmatched, making their ad business hugely profitable.
Creating new services. Understanding user needs allows them to launch successful new services more easily - finance, food delivery, e-commerce - because they inherently know the demand.

Simply put: If user scale is the "prime location," then data assets are the "operational prowess" that uses big data analytics to perfectly position every store and extract premium value from every ad slot.

3. The "Infinite Lifeline" Backstage: The Deep-Pocketed "Parent Company" (Parent Company Support)

Standing firmly behind LY are two "big players": SoftBank and NAVER (LINE's Korean parent).

Unlimited war chest for "burning" money. Remember PayPay's insane "¥10 billion cashback" launch campaign? That's classic "spending for market share." Few companies can match that audacity. SoftBank could proudly declare: "We can afford the loss! Spend whatever it takes to capture users!" This strategy crushes competitors.
Strategic synergy. SoftBank has vast assets (telecom, investments, etc.) that can integrate with LY's businesses, driving traffic and mutual support, creating a stronger ecosystem. NAVER provides continuous technological prowess.

Simply put: Parent company support is like the mall owner also being a super-wealthy urban planner. Need a promotion? The owner greenlights a ¥100 million budget. Need a subway built nearby? The owner can approve it. How can rivals compete with this kind of "pay-to-win player"?

Conclusion: So, What's the Most Crucial Element?

Think of it like building:

User scale is the "foundation." Without this, everything else is a castle in the air. It’s the most fundamental and unshakeable advantage.
Data assets are the "building erected." They are built upon this foundation, realizing the land's actual value.
Parent company support is the "top-tier construction team with unlimited funding." It ensures the building is constructed quickly and well, resilient against any external shocks.

Therefore, if we must name the single biggest factor, it’s unquestionably user scale. It’s the prerequisite that enables the other two advantages to exist and be leveraged. Without that massive user base, data becomes water without a source (asset without data), and parent company support lacks a foundation.