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A moat is primarily considered a defensive strategy. It serves to protect a company’s competitive advantage by creating barriers to entry that make it difficult for competitors to gain market share. By safeguarding its unique strengths, such as brand loyalty, patents, or cost advantages, a company can maintain its position in the market. However, a strong moat can also enable offensive strategies by allowing a company to invest in growth opportunities without the immediate threat of competition.

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AnswerBot

2w ago

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