A geographical moat: When a company has a regional oligopoly through its location and competitors cannot simply enter their market.👇
A “high switching costs” moat: When it’s too much of a hassle for their customer to switch to a competitor, so they stay with them.👇
A “network effect” moat: A network effect occurs when a good or service becomes more valuable to its users as other users join the network. For instance, the telephone was not very useful when few people had one. As more people acquired telephones, however, they became more useful. Now that almost everyone has a telephone in their home, they are considered indispensable.👇
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A “Branding” moat: A brand-based business moat is created when a firm develops a unique value proposition, culture, and messaging that give it a competitive advantage over the competition.👇
The Coca-Cola Company: Refresh the World. Make a Difference
A “cost advantage moat”: Companies can invest in efficiency, then pass the resulting cost savings on to customers in the form of lower prices. This kind of moat is sustainable if it's a cost advantage that gets stronger as the company grows. 👇
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A “intellectual property” moat: Intellectual property moats function because a corporation creates valuable intellectual property that its competitors cannot structurally reproduce and exploit: 👇