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Quick Summary of Competitive Advantages

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April 08, 2010 – Comments (1) | RELATED TICKERS: UA , WMT , MSFT

The Crux of the Competitive Advantage

This is a summary of a recent foolish discussion on competitive advantage (courtesy of TMFTenacious).

The Four Sources of Economic Moats

1)      Intangible Assets

a.       Brands (Under Armour)

b.      Patents (Healthcare)

c.       Regulatory Licenses

2)      Cost Advantages

a.       Economies of Scale (Walmart)

b.      Geographic Advantages (Miners)

3)      Switching Costs

a.       Tight Integration with Businesses (Microsoft)

b.      Retraining Costs

c.       Contractual Obligation (Verizon)

4)      Network Effects (eBay, Facebook)

 Four Mistaken Moats

1)      Great Products

2)      Market Share

3)      Operational Efficiency

4)      Talented Management

 

1 Comments – Post Your Own

#1) On April 08, 2010 at 11:36 PM, penchy1 (44.70) wrote:

What, it's just financials?

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