From leveraging the uniqueness of their brand to tapping into the values of their customers, these companies have built durable business moats based on culture-related advantages.
While these are powerful ways to keep customers around and fend off competitors, huge companies have been built off intangible factors like brand and tradition as well.
When a company has a sufficiently powerful brand — or a product so embedded in a culture by tradition, like Marmite in the UK — it has pricing power because its customers buy based on something beyond price: They buy based on the signaling function of the purchase, and/or because of cultural forces beyond that individual’s control.
Below, we look at what cultural moats are and how companies — from Patagonia to Starbucks to Marmite — have used them to strengthen their businesses.
For more on business moats, check out CB Insights’ report: 19 Business Moats That Helped Shape The World’s Most Massive Companies.If you aren’t already a client, sign up for a free trial to learn more about our platform.