Mission Critical Products & Services – An Analytical Framework
Advisor Perspectives, 2017
11 Pages Posted: 8 Apr 2019
Date Written: October 31, 2017
Mission critical moats are one of the strongest forms of moats that we come across and also one of the least understood. There are four primary attributes to such moats, namely, product complexity, importance of reputation, low cost in relation to end product's total cost of production, and criticality to the customer.
In this paper, we discuss an analytical process for evaluating such moats. Further, through the example of Givaudan, we show how we apply our framework in an effort to help the analyst with a practical framework.
Keywords: High Quality, Competitive Advantages, Moats, Consumer Preference, Brands, Pricing Power, Customer Captivity, Givaudan
JEL Classification: L10, L81, L22, G10, G11, G12
Suggested Citation: Suggested Citation