What is Economic Moat?
A definition of Economic Moat
“An economic moat is a competitive advantage that allows a company to protect its long-term profits and market share from competing firms.”
Business Glossary > What is Economic Moat?
Examples of Economic Moat in a Sentence:
An economic moat allows a company to sustain its market position.
Companies with a strong economic moat can fend off competition effectively.
Investors seek companies with a wide economic moat for stable returns.
Why is Economic Moat Important in Business?
An economic moat is crucial for maintaining a company’s dominance in the market. It ensures long-term profitability and reduces vulnerability to competition, making such companies attractive to investors seeking stable and predictable returns.
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Associated Terms
Here are some associated business terms and synonyms for “Economic Moat”:
- Competitive Advantage
- Barrier to Entry
- Market Fortress
Apple’s Economic Moat
Apple Inc. benefits from an economic moat with its strong brand, extensive ecosystem, and loyal customer base, enabling the company to maintain premium pricing and robust market share against competitors.
Final Notes on Economic Moat
When evaluating a company’s potential for long-term success, consider the strength and durability of its economic moat. This can indicate its capacity to withstand competitive pressures and ensure sustained profitability.
This has been a definition of Economic Moat meaning.
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