Economic Moat
A structural competitive advantage that keeps rivals out — the durable thing that lets a business stay profitable after competitors notice it is profitable.
Full definition of Economic Moat →:: COMPARE ::
Economic moatvsNetwork effect
The short answer
The network effect is one of five moat types, not the whole category. Cost advantage and switching costs do the same defensive job with no network at all — and are considerably less fashionable.
Side by side
| Aspect | Economic moat | Network effect |
|---|---|---|
| Is a | Category | One member |
| Requires users | No | Yes |
| Types | Five | One |
| Can be built alone | Sometimes | Rarely |
What each one means
Network Effect
A product gets more valuable to each user as more people use it. Value comes from the crowd, not the feature list.
Full definition of Network Effect →