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Why Nike Is Worth Billions, and What a "Brand Moat" Means

Companies and Brands You Know • Beginner Investing • 6 min

A Nike swoosh stitched onto a shoe doesn't change the shoe's underlying materials or performance — but it changes what a meaningful number of customers are willing to pay for it, and that gap between the physical product's cost and its branded price is a real, measurable source of business value. This is what's meant by a "brand moat": a durable competitive advantage rooted in customer trust, recognition, and…

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