InvestorQ : Is it possible to have exit barriers as a moat?
Angel dcosta made post

Is it possible to have exit barriers as a moat?

Answer
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Anamika Sodhani answered.
2 years ago


This may appear to be a rather transient advantage but many companies have really built a sustainable business model around it. Take the case of Microsoft. The Operating System is a fairly simple product but over the last 40 years, there is so much that people have invested in running this O/S that they do not see any merit in shifting. It is just so rampant and so simple that despite all the flaws and efficiency problems that we have with the MS Office, we continue to use that as the default operating system for our computers. For any individual or company looking to shift out of the Microsoft O/S, the related costs are just too high. In fact, software companies in India used this moat quite effectively over the years as their engagement with clients kept on expanding leaving little incentive for them to switch.