An illustrative business
The following scenario is illustrative. A hypothetical clinic system may require data migration, integration rework and staff retraining to replace. Customers could be staying because the service is excellent, because of migration costs, or both.
Read the evidence
MoatDefender examines a claimed advantage beside its supporting evidence. A category name alone does not establish a company’s moat. Read the dates, sources and gaps before interpreting a reading.
The agent economy
Cheaper software changes what competitors can reproduce. The practical effect depends on the specific business and its customers. Public research does not establish that one company’s advantage will endure.
Common questions
- What does switching costs mean?
- Switching costs are the burdens customers face when changing providers. Switching costs can involve established processes, permissions, retraining or migration work.
- Does a Power establish investment value?
- A Power describes a possible source of competitive advantage. A Power does not establish valuation or predict investment returns.
Sources
Background reading only. No affiliation with or endorsement of MoatDefender is implied.