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1.
Private-label products are an example of _______.
Threat of substitutes. Private-label products are an example of the threat of substitutes. These products threaten the sales and margins of branded products, which are typically more expensive to produce.
2.
In the language of economic moats, depth is different from width. What does depth refer to?
How big any particular competitive advantage is. Instead of the overall size of the competitive advantage(s), depth looks at the power of individual advantages.
3.
Why is it a good idea to avoid investing in companies that lack economic moats?
They have few competitive advantages to keep rivals away. The definition of a moat is that of a competitive advantage over other companies.
4.
A company that was once a major player in its market but is now suffering the effects of increased buyer power and a flight to other, related products would have a _______.
Narrow moat. It would have a narrow moat of the eroding variety.
5.
An example of easy entry into a market would be _______.
A company signing up to become a seller on eBay. Signing up for eBay would be a good example of a new company easily entering the marketplace.
