Back
Ankush Sharma
Business Consultant ... • 1m
MOATS IN BUSINESS: THE HIDDEN POWER BEHIND MARKET DOMINANCE 🛡️ In business, a moat refers to a company’s sustainable competitive advantage—the ability to fend off rivals, protect profits, and grow for the long term. Warren Buffett famously invests only in businesses with wide moats. Why? Because moats = staying power + pricing power + customer loyalty. 🔍 5 TYPES OF BUSINESS MOATS 1️⃣ Intangible Assets (Brands, Patents) Strong brands like Nike and Coca-Cola foster emotional loyalty and premium pricing. Patents give pharma firms like Eli Lilly exclusive revenue windows. 2️⃣ Switching Costs Products that are hard to abandon—like Apple’s ecosystem or SAP's ERP systems—lock users in by making switching expensive, inconvenient, or risky. 3️⃣ Network Effects The more users, the more valuable the product. Think WhatsApp, Facebook, or Amazon. These platforms benefit from winner-take-most dynamics. 4️⃣ Cost Advantage Companies like Walmart, IKEA, and GEICO leverage scale and operational efficiencies to undercut competitors and retain margin. 5️⃣ Efficient Scale Industries like railroads, utilities, or telecom often support only one or two players. High upfront costs or regulation keeps competitors out. 🏆 Wide vs Narrow Moats Wide Moats (Apple, Visa): Last 20+ years Narrow Moats (Zoom, Shopify): 10–20 years No Moat (commodity firms, trendy startups): Easily disrupted 📈 Why Moats Matter to Investors Buffett bets on businesses with deep moats and predictable cash flows: Coca-Cola → Brand moat Apple → Ecosystem moat BNSF Railway → Infrastructure moat GEICO → Cost advantage AmEx → Network effect ✅ How to Evaluate a Moat Ask: Will customers stay loyal if prices rise? Is this hard to copy? Would it cost millions to compete? If the answer is yes, you’ve likely found a moat. 🧠 Whether you're a founder, investor, or strategist, understanding moats helps you build or back companies that endure. Want the full breakdown? Drop a comment or DM me — happy to share. #BusinessStrategy #CompetitiveAdvantage #WarrenBuffett #StartupGrowth #InvestorInsights #Moats #StrategicThinking #BusinessModel #LongTermSuccess
More like this
Recommendations from Medial
Thakur Ambuj Singh
🚀 Entrepreneur | Re... • 4m
Owning the Edge! 🚀🔬 A Proprietary Moat is built on exclusive patents, data or technology that gives companies a unique advantage. Examples like NVIDIA’s GPU patents, Tesla’s battery technology and pharmaceutical companies' drug patents showcase how
See More
Shaikh Umair
Explorer | Executer|... • 2m
Everyone talks about growth. But the smart ones think about "moats". A moat is what protects your business when others try to copy you. And it’s never just your product. It’s how hard you make it for others to steal your position. Want examples? B
See More
Startup Savvy
Entrepreneur is What... • 1y
MOAT is a thing which every business should have to protect themselves from competition Types of MOAT 1) Brand Moat :- Fevicol is synonym to the word glue 2) Taste Moat :- People who love Maggie will never change their habit 3) Network MOAT :- You
See More
Sanskar
Keen Learner and Exp... • 7m
Patents VS Trademark VS Copyright We all have used or heard these words somewhere in business world but do you know the difference between them? Patents > Patents are issued for any new innovation ex - Product, Machine or Tech. > This is a legal
See More
AIGuts
Exploring AI's poten... • 2m
What’s the Difference Between Narrow AI and General AI? Understanding the difference between Narrow AI and General AI is essential in today’s AI-driven world. Narrow AI, also known as Weak AI, is designed to perform a specific task—such as facial re
See More
Download the medial app to read full posts, comements and news.