Moats allow companies to keep away competitors and increase their profit margins. Understanding possible moats helps with evaluating startup strategies and finding the weaknesses of incumbents.
Some moats are definitely transferable. The book specifies that a "cornered resource" moat has to be transferrable, whether it is IP, physical resources, or employees with specific skills. For the 7th one, I think the author would argue that it's not possible to sell it to customers because it has to be something that is unique to each company. If you want to sell a unique culture/structure you can build other moats, like the "switching costs" moat.
As always, covering complex topics in a simple yet elegant way!
Thank you!
What if another company sell a moat to other companies? Can it be possible? Especially if that one is 7th one?
Some moats are definitely transferable. The book specifies that a "cornered resource" moat has to be transferrable, whether it is IP, physical resources, or employees with specific skills. For the 7th one, I think the author would argue that it's not possible to sell it to customers because it has to be something that is unique to each company. If you want to sell a unique culture/structure you can build other moats, like the "switching costs" moat.