Though not always easy to quantify, intangible assets may include brand recognition, patents, and regulatory licenses. They may prevent competitors from duplicating products or allow a company to charge premium pricing.
Example: Starbucks Corp.
Starbucks is a leading specialty coffee retailer. According to Morningstar, Starbucks’ wide economic moat comes from its “brand intangible asset that commands premium pricing combined with meaningful scale advantages. With a widely recognized brand, Starbucks is among the few retail concepts to be successfully replicated across the globe.”
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