Abbott Laboratories

Abbott has multiple moderate competitive advantages. Its medical devices segment relies on patented technology (e.g. the FreeStyle Libre glucose monitor) and installed base benefits (hospitals and patients become accustomed to Abbott systems), providing a degree of switching cost.

Its global nutrition brands (Similac, Ensure, etc.) are widely recognized, and the company holds cost advantages from scale manufacturing. These factors constitute an “intangible asset” moat (brands and patents) and some switching costs, especially in healthcare settings.

However, there is fierce competition in most segments (other device makers, generic drug pressure, other formula makers), so we view the moat as moderate, not wide (score ~70). Abbott does benefit from diversified scale – it supplies products to governments (WIC program in the U.S.) and enterprises worldwide – which gives some efficient scale.

Overall, the company has multiple defensive elements, but none are invincible. We judge Abbott’s economic moat as solid but not unbeatable, meriting a score in the low 70s.