Procter & Gamble

P&G’s moat is anchored in intangible assets and scale economics across five sector business units and a concentrated set of daily-use brands (Tide, Pampers, Gillette, Oral-B, Head & Shoulders, Charmin, Crest, etc.).

Intangible assets: 95/100. The company spends about 2.1 billion dollars on R&D and significant brand-building within SG&A to maintain superiority across product, packaging, communication, retail execution, and value. The breadth and depth of trademarks and patents protect product formulations and manufacturing processes.

Cost advantages: 90/100. Global procurement, manufacturing productivity, and logistics scale deliver lower unit costs and support category leadership; FY25 operating margin was 24.3 percent and gross margin 51.2 percent despite mix and commodity pressures.

Efficient scale: 75/100. Many categories approach oligopolistic structures where incremental entry by smaller rivals is deterred by advertising and shelf-space intensity. Switching costs: 60/100. Consumers can switch, but brand trust, performance differentiation, and habit create meaningful inertia in baby care, fabric care, and oral care.

Network effects: 5/100. Not material. Risk appraisal: private label and DTC disruptors remain a check, evidenced by the prior Gillette intangible impairment in FY24; however, continued premiumization and innovation, plus superior in-store execution and e-commerce reach, underpin moat durability.