I’ve decided in the past, that a company’s brand was a strong enough moat to keep competitors at bay, and allow the company to keep earning profits This has been a grave error, and warrants further study. I’ve since learned that a brand, by itself, is not a strong competitive advantage resulting in a defensible economic moat. For a strong moat a stronger situation needs to be in place such as some kind of customer preference, distribution or network effect that is the source of a strong competitive advantage. Companies spend a lot of money on marketing and advertising to build...
Is a Brand a successful Moat or Barrier to Entry?
