Economic Moat

Filed Under » ,
Dictionary Says

Definition of 'Economic Moat'

The competitive advantage that one company has over other companies in the same industry. This term was coined by renowned investor Warren Buffett.
Investopedia Says

Investopedia explains 'Economic Moat'

The wider the moat, the larger and more sustainable the competitive advantage. By having a well-known brand name, pricing power and a large portion of market demand, a company with a wide moat possesses characteristics that act as barriers against other companies wanting to enter into the industry.

Related Definitions

  •

    Patent Reexamination

    A process conducted by the U.S. Patent and Trademark Office (USPTO) on a patent that already has been issued in order to verify the claims and scope of the patent. A patent reexamination ...
    Read More »

  • Balanced Score Card - BSC

    A strategic planning and management system used extensively in business and by organizations worldwide. Benefits of the system include increasing focus on results, aligning business ...
    Read More »

  • Comparative Advantage

    A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.
    Read More »

    • Absolute Advantage

      The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.
      Read More »

    • Masterbrand

      A specific overarching brand name that serves as the main anchoring point on which all underlying products are based. Masterbranding attempts to create a strong association between a ...
      Read More »

    • Economies Of Scale

      The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through ...
      Read More »

    • Knowledge Capital

      An intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job learning. Knowledge capital is ...
      Read More »

    • First Mover

      A form of competitive advantage that a company earns by being the first to enter a specific market or industry. Being the first allows a company to acquire superior brand recognition and ...
      Read More »

    • Soft Economic Moat

      A type of economic moat (or competitive advantage) that is based on intangible qualities such as exceptional management or a unique corporate culture that breeds success.
      Read More »

    • Narrow Moat

      A slight competitive advantage that one company enjoys over competing firms operating in the same or similar type of industry. A narrow moat is still an advantage for a company, but it ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions