MOAT #4 - Network
Sometimes a business gets stronger with every new user. This is called the network effect. The more people use a product, the more valuable it becomes.
Examples:
- Visa - millions of merchants and billions of cards.
- Mastercard - a global payment network.
- Meta Platforms - social networks work precisely because of the scale of their user base.
A new competitor can build an app. But luring away the entire network is nearly impossible.
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