The Economic Moat Analyzer
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Assess whether this business has a durable competitive advantage — an economic moat. The business: [DESCRIBE] Its apparent advantages: [DESCRIBE] The competitive context: [DESCRIBE] Evaluate each potential moat source: 1. Cost advantages (scale, process, location, access) 2. Switching costs and customer lock-in 3. Network effects 4. Intangibles (brand, patents, licences) 5. Efficient scale in a limited market For each: is it real, how wide, how durable, and what could erode it? End with a verdict on whether this advantage will still be here in five years, and the biggest threat to it.
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