Markets · 6 pages · 12 min

How a moat is a story about competition

A moat is a claim that rivals cannot easily take the firm's customers or its returns.

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From the opening

A moat, in the language of competitive advantage, is a story about why rivals cannot readily copy the offer, take the customers, or drive returns down to an ordinary level. It is a claim about the structure of competition, not a compliment about a popular product. The opening covers a barrier slows rivals, profit alone is not a moat, and the mechanism can expire.

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Inside

A barrier slows rivals
Profit alone is not a moat
The mechanism can expire
Share is not a defense
Where the idea stops applying
A distinction worth keeping

Sources

Economic moat competitive advantage
Barriers to entry

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How a moat is a story about competition

From the opening

Inside

Sources

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