How can a business create a MOAT

I will not take your important time to make you understand what’s MOAT.
Just read a short story

Suppose I have a juice shop which runs during summer.
AROUND my shop there are many other juice shop because it’s low capital intensive and anyone can set up.
I sell 20/glass while my competitors selling @18/glass.
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Now you ask why am I selling 20 per glass while my competitor @18 per glass.
Why people are paying additional 2 per glass

The reason is during summer the sun is too hot
And there is a large tree where my juice shop situated and the tree ownership belongs to me because it’s before my house.
This tree is too big and provides natural air and shade to people who come to drink juice during summer.
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While my competitor shop on the roadside where
Neither any tree nor anything which can resist sunlight and give shade.
Thats why they are charging 18 per glass while I am charging 20/glass.

Thats why they are operating at less margins while I am operating at high margin.
Thats why they have low turnover even if product rate is low and i have high turnover with high margin.
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The big tree is my MOAT and giving me an edge over my competitor and sustainable for long term.

Author: Atul Singh Stock Market Analyst

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