Business Strategy
Moat
A sustainable competitive advantage that protects a business from competitors, like a moat protects a castle. Types include network effects, switching costs, economies of scale, brand, and regulatory capture.
Biological Context
Moats parallel ecological defenses: thorns, toxins, camouflage, and territorial behavior. Just as organisms invest in protection proportional to the threat, businesses invest in moats proportional to competitive intensity. The strongest moats, like the best defenses, are costly to overcome.
Business Application
Warren Buffett popularized 'economic moat' as an investment criterion. Moats determine long-term profitability—businesses without moats see profits competed away. The key question: what prevents competitors from copying success?