A company's competitive advantage that makes it difficult for competitors to take away its market share or profits. Examples include strong brand loyalty, proprietary technology, or exclusive patents. A company with a wide moat can maintain high profits and pricing power over time.
Company A owns a popular soft drink brand trusted by millions of consumers worldwide. Even though competitors make similar products, customers prefer Company A's brand. This brand loyalty is an economic moat that protects the company's profits and market position year after year.
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