Three sources of competitive advantage

In the long run, profits depend on competition. Gaurav Sodhi explains three ways businesses can keep the competition away.

How much profit a business can make ultimately comes down to one thing: competition. No matter how wonderful a company’s products, no matter how industrious its management, high margins and profits will always attract new competitors and force returns to fall – unless there’s a way to keep the competition at bay.

Buffett famously described it as an economic moat; most of us have heard it called competitive advantage and it vies with a low purchase price for the greatest source of investment returns. It’s what differentiates a fad from a sustainable business.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles