Skip to content
MoatDefender
Menu

Definitions

Words for examining an advantage

MoatDefender’s glossary defines the terms used in a reading and its supporting work. Each definition states the subject and its limits. Builders, Investors and Supporters can use the same vocabulary when examining an advantage. The Moat Index remains an opinion on defensibility, with a proprietary computation.

Try your ideaAn opinion on defensibility. Not investment advice.

Readings and products

Moat Index
The Moat Index is MoatDefender’s dated opinion on competitive defensibility. The Moat Index carries a range, band, confidence, method version and date.
Original mind moat
An original mind moat is an advantage that remains difficult to reproduce when code becomes cheaper. An original mind moat requires evidence beyond the originality of an idea.
Moat
A moat is a competitive barrier that preserves a business advantage against rivals. A moat requires evidence in its specific business context.
Defensibility
Defensibility describes how difficult an advantage is for rivals to remove. Defensibility differs from valuation, market demand and investment returns.
Benefit
A benefit is the customer or economic value attributed to an advantage. A benefit alone does not establish a durable competitive barrier.
Barrier
A barrier makes an advantage difficult for a rival to reproduce or neutralise. A barrier requires specific supporting evidence.
Range
A Moat Index range describes uncertainty around the displayed reading. A range does not establish a statistical confidence interval or forecast.
Confidence
Moat Index confidence describes how settled the reading is under its stated scope. Confidence does not establish an independent audit or probability of success.
Moat Glyph
A Moat Glyph visualises a Moat Index reading. A Moat Glyph does not confer legal rights or establish a cryptographically unique identity.
Moat Studio
Moat Studio organises a company’s reading and supporting work. Moat Studio shows each available step’s status and required action.
Moat Graph
The Moat Graph connects MoatDefender’s public research on competitive advantage. A Moat Graph connection does not establish causation or endorse a company.
Global MDI
Global MDI presents MoatDefender’s public research on competitive defensibility. Global MDI comparisons require the stated population, dates and limits.
Original Mind Score
Original Mind Score describes a separate Original Minds community measure. Original Mind Score does not replace the Moat Index or establish investment quality.
Original Minds
Original Minds is MoatDefender’s club for Builders, Investors and Supporters. Original Minds membership is by application.
Proof of precedence
Proof of precedence records submitted material and its recorded time. Proof of precedence does not establish worldwide priority, ownership, novelty or legal rights.
Evidence fingerprint
An evidence fingerprint is a hash used to compare digital material. An evidence fingerprint alone establishes neither authorship nor the time of creation.
Ultra
Ultra includes planned evidence-vault and proof-of-precedence tools marked Coming. Ultra does not establish legal protection or worldwide priority.
Moat Watch
Moat Watch is a planned alerting tool marked Coming. Moat Watch does not promise complete detection or a legal outcome.
Certified
Certified means methodology-verified in MoatDefender’s terminology. Certified does not mean investment quality, legal ownership or a guaranteed outcome.

The seven Powers

Scale economies
Scale economies reduce unit costs as sustained volume grows. Scale economies require evidence that smaller rivals cannot match the cost advantage.
Network economies
Network economies increase a participant’s value as relevant participants join. Network economies depend on the useful interactions within the specific network.
Counter-positioning
Counter-positioning uses a business model that an incumbent would damage its existing business to copy. Counter-positioning requires evidence of that incumbent conflict.
Switching costs
Switching costs are the burdens customers face when changing providers. Switching costs can involve established processes, permissions, retraining or migration work.
Branding
Branding creates lasting customer value associated with a provider’s identity. Branding requires evidence beyond awareness or a recognisable logo.
Cornered resource
A cornered resource gives a business preferential access to something valuable that rivals cannot readily obtain. A cornered resource requires evidence of access and its durability.
Process power
Process power is an operating advantage embedded in a business’s learned routines. Process power requires evidence that rivals cannot readily reproduce those routines.

Use the original record

A record retains the name, date and method version under which it was created. Different product labels do not make historical readings comparable. Recording evidence does not grant intellectual-property rights.

Common questions

Does being first establish a moat?
Earlier creation and durable competitive advantage answer different questions. A moat requires evidence of a continuing business advantage and a competitive barrier.
Does a Moat Glyph protect an idea?
A Moat Glyph visualises a reading. A Moat Glyph does not confer secrecy, ownership or legal protection.

Read next

Sources

Background reading only. No affiliation with or endorsement of MoatDefender is implied.