Loader Logo
Ideas Post

Collin Harness


Businesses with big MOATs

A business MOAT is a competitive advantage. How difficult is it for another business to come along and displace the current business, by building a better mouse trap?

The larger the business MOAT the bigger marketshare the business will have. The easier it will be to acquire customers. In theory, the larger the MOAT the more longevity a business has.

    1. Boeing

    There are really only 2 major aircraft manufacturers: Boeing and Airbus.

    Think of all the resources you would need to create a new aircraft manufacturer. Money, Labor, Patents, Supplies or relationships with suppliers, facilities, Buyers or relationships with airplane buyers.

    2. Google

    Synonym for 'search'.

    There are other search engines, but Google has somehow captured everyone's attention.

    3. Apple

    Apple does not play well with others.

    Once you start putting your data into an iPhone like buying music and apps, consumers do not want to switch.

    They also have iconic retail stores that gives them an edge over other electronic manufacturers.

    4. Amazon

    Their logistics network is unrivaled.

    5. Walmart

    The number and scale of their physical locations would be hard for another business to replicate. Hence, most people get their groceries at Walmart.

    6. Microsoft

    The power of Microsoft is B2B.

    Every large business is using windows. Many businesses are using Azure and SQL Server. This business is not going anywhere.

    7. Berkshire Hathaway

    Insurance, Railroads, Oil and Investments. Cash machine.

    8. Alibaba

    China network

    9. Intel

    Making computer chips is difficult.

    You need a lot of resources. Facilities, robots, labor. Intel has been doing this a long time. They have a lot of patents. They have a lot of customer relationships.

    It would take a lot of work to replicate this type of business.

    10. Phillip Morris

    Cigarettes are a lighting rod.

    They are heavily regulated. The government wants to outlaw them all together.

    New products/companies will be heavily scrutinized. PM also has a global scale that would be difficult to replicate.

    11. Lockheed Martin

    Manufacturing. Government security clearance. Patents. Aerospace engineering. Defense department contracts. Global network of governments.

    This business has an infinite number of barrier to entry.

businessstocks+3 More
0 Like.0 Comment
Paoloand 3 more liked this
Comments (0)

No comments.