Course 205: Economic Moats
How to Build a Moat
In this course
1 Introduction
2 How to Build a Moat
3 Low-Cost Producer or Economies of Scale
4 High Switching Costs
5 The Network Effect
6 Intangible Assets
7 The Bottom Line

There are a number of ways a company can build a sustainable competitive advantage in its industry. Among the more qualitative measures commonly used to assess a firm's economic moat:

  • Creating real or perceived product differentiation
  • Driving costs down and being a low-cost leader
  • Locking in customers by creating high switching costs
  • Locking out competitors by creating high barriers to entry or high barriers to success

Thankfully we've been able to whittle down all of the types of advantages in the marketplace. In Lesson 204, we identified the four main types of economic moats, and below we provide a bit more detail, using examples. The more types of moats a company can build, the better.

Next: Low-Cost Producer or Economies of Scale >>


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