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Soft economic moat

Started by munna99185, July 18, 2014, 01:03:08 PM

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munna99185

July 18, 2014, 01:03:08 PM
A type of economic moat (or competitive advantage) that is based on intangible qualities such as exceptional management or a unique corporate culture that breeds success.
Soft moats are more difficult to identify than better-known economic moats such as brand name, pricing power, high switching costs and market share. Nevertheless, they can be a great way for companies to ward off competitive pressures. Many would argue that Jack Welch's exceptional leadership at General Electric as the company's CEO from 1981-2001 provided GE with a soft economic moat.

[Source: http://www.investopedia.com/terms/s/softeconomicmoat.asp]



Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University

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