What is Competitive Moat in business and how to build one

A company with an economic moat is less likely to be disrupted by a competitor.

This is because while there are multiple companies competing, the company with an economic moat can take advantage of its lead in the market and maintain it.

Economic Moats create barriers for competitors and make it harder for them to enter the market.

This gives a company more time to plan ahead and develop new products before competitors even enter the market.

It is difficult to target the richest market for your product or service because of the sheer number of competitors.

The key to finding a low-competitor market is understanding what the customers are actually looking for and understanding their decision-making process.

In order to find a low-competitor market, the company needs to do some research and understand the decision-making process of its customers.

This includes observing how they compare products in their minds and what factors are most important in their decision-making process.

The economic moat is created by blocking out competitors from entering the market and cutting off their supply chain.

Companies like IBM and Coca-Cola successfully maintained their economic moats by utilizing a variety of strategies such as Coca-Cola patenting its secret recipe.

Businesses that establish an economic moat for themselves have a competitive advantage over their peers.

They are able to charge a price premium for their products or services and maintain profitability without much competition.

1. Create and deliver high-quality products or services that customers are willing to pay.
2. Enhancing customer experience
3. Build a proprietary technology
4. Invest in intellectual property
5. Find profitable niches