It tells about how business can maintain competitive advantage over market competitors.

1. Economic Moat created & Edited by Krishna Khandelwal
• It is business ability to establish and maintain a competitive
advantage over market competitors.
• This is important in order to protect the profits of the company in
the long run as well as market shares from competing firms.
Types of Economic Moats
 High Switching Cost – Stable switching leads to an improved
moat.
 Efficient Scale- Efficient scaling leads to good moat.
 Low cost Production – lower the cost deeper the moat.
 Network Effects- More people on your platform system lead to
good moat.
 Intangible Assets – More intangible asset (Trade marks, Patents)
deeper the moat.
Created and Edited by Krishna Khandelwal , Reference of word from Warren Buffett interview