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1.
A company that resides in an industry where wide moats are nearly impossible to create might still have a narrow moat. Such a moat would be of what variety?
Moat with structural challenges. Due to structural factors, becoming a wide moat is nearly impossible, but the company can still enjoy a narrow moat and still be in a dominant position.
2.
To find out whether a company you are investing in has a deep economic moat, you should look at _______.
How powerful any one competitive advantage is. This is what depth is about.
3.
What does an economic moat provide to a company?
A competitive advantage. Though the others may be true for many (or should be), a moat is the competitive advantage that one company has over other companies in its industry. As such, it has a lot of power to do what it wants.
4.
When customers are fragmented and don't have much influence on a product, that is an example of weak _______.
Buyer power. For the companies producing the products, that is a positive thing, as it strengthens their competitive positioning.
5.
An example of easy entry into a market would be _______.
A company signing up to become a seller on eBay. Signing up for eBay would be a good example of a new company easily entering the marketplace.
