Competitive Moat

Definition

A sustainable competitive advantage that protects a business from rivals and preserves its market position over time. Moats are typically built from intangible assets: brand strength, network effects, switching costs, proprietary technology, or regulatory advantages.

Related Terms

Cap Table (Capitalisation Table) Cap Table Management Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio

Related FAQ

What is a moat and why do investors care?

A moat is a sustainable competitive advantage — brand strength, network effects, switching costs, proprietary technology, or scale — that protects against competition and justifies premium valuation.

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How do you value proprietary technology and algorithms as intangible assets?

Technology value is assessed via patent strength, market adoption, competitive differentiation, and the cost to replicate. Strong tech moats justify premium valuations.

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