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Deep Economic Moat
Choose ONE company and identify how it has established a Deep Economic Moat, or sustainable barriers to entry. Be very specific in terms of each barrier or unique position, provide substantive justification. NOTE: the following companies are not allowed for this Memo: Any company discussed in M Porters article: What is strategy, Apple, Walmart, Intel, Samsung, Microsoft, and any airline, carbonated soft drink, nor electric power company.A Deep Economic Moat is the competitive advantage that a company has over other companies in the same industry. By having a well-known brand name, pricing power and a large portion of market demand, a company with a wide moat possesses characteristics that act as barriers against other companies wanting to enter into the industry.PayPal Holdings, Inc. is one such example. Paypal is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. This company has achieved strong competitive advantage through the following means:Paypal has a global reach. It has the ability to attract, retain and engage both merchants and consumers with relatively low marketing expense.Paypal has the ability to show merchants that they will achieve incremental sales by offering PayPal services to their customers. By facilitating a store that never closes, it provides convenience to customers of transacting business anytime (24 hours), anywhere, on any platform, using any device (computer, tablet, mobile phone, etc.)Paypal guarantees security of transactions and the ability for consumers to use its products and services without sharing their financial information with the merchant or the party they are paying.If there is a problem with a transaction, Paypal operates a Dispute resolution center aimed at assisting both merchants and consumers in resolving these disputes. It also offers buyers and sellers protection programs.Customer servicePaypal has a strong brand name, well known as one of top five internationally recognized brands used in online payments: PayPal, American Express, MasterCard International, Visa or Western Union.Paypal’s Website, mobile platform and application onboarding is relatively easy to use and access to sign up is offered free of charge.Paypal’s system reliability and data security.Paypal’s cutting edge technology and quality of developer tools such as its application programming interfaces and software development kits make it a leader in its industry. It has the ability to establish services across numerous business channels, including mobile payments and retail point of sale purchases.

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(2016, 04). Deep Economic Moat. EssaysForStudent.com. Retrieved 04, 2016, from
“Deep Economic Moat” EssaysForStudent.com. 04 2016. 2016. 04 2016 < "Deep Economic Moat." EssaysForStudent.com. EssaysForStudent.com, 04 2016. Web. 04 2016. < "Deep Economic Moat." EssaysForStudent.com. 04, 2016. Accessed 04, 2016. Essay Preview By: simodon Submitted: April 28, 2016 Essay Length: 406 Words / 2 Pages Paper type: Coursework Views: 687 Report this essay Tweet Related Essays Why Was There Economic Prosperity in American in the 1920's? Why was there economic prosperity in American in the 1920's? I know that America on it's surface was prosperous during the 1920's. I know this 1,062 Words  |  5 Pages Economical Events That Lead up to the Great Depression Information: In the 1920's, things were really rocking in the US and around the world. The rapid increase in industrialization was fueling growth in the 612 Words  |  3 Pages Economic Analysis of Hawaii Economic Analysis of Hawaii Hawaii, with an area of 28,313 sq. km (10,932 sq. mi.), is the 43rd largest state in the U.S.; 6.9% of 1,503 Words  |  7 Pages Wal-Mart Economics Sam Walton, a leader with an innovative vision, started his own company and made it into the leader in discount retailing that it is today. 3,329 Words  |  14 Pages Similar Topics What economic and social factors should Fresh Fields managers watch Role Community Planning Have Economic Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter

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