VanEck Blog

Efficient Scale: Moats with Natural Monopoly

door Brandon Rakszawski, Senior ETF Product Manager

Companies that benefit from efficient scale operate in a market that may only support one or a few competitors, which limits competitive pressures.

Cost Leadership Provides Market Control

door Brandon Rakszawski, Senior ETF Product Manager

Cost leaders often exert significant control over market prices, which may give them an advantage over competitors, though it is one of the most difficult competitive advantages to maintain.

Network Effect: A Proven Way to Create a Moat

door Brandon Rakszawski, Senior ETF Product Manager

When a network effect is in play, each additional customer increases the product's or service's value, and this may help a company grow its advantage over competitors.

Intangible Assets: The Leading Source of Moats

door Brandon Rakszawski, Senior ETF Product Manager

Although not always easy to quantify, intangible assets are one of the primary sources of strong competitive advantages for businesses and a key source of economic moats.