Technologically Well Geared

In India, Bosch Limited, the Indian arm of Germany’s Bosch Group, offers a good example of a technology-based moat. Technology—its forte Bosch’s economic moat arises from its superior technology. It has access to the latest and tested technologies from its parent. These technologies provide it with a strong competitive edge. In the auto components space, Bosch enjoys competitive advantage especially in the fuel injection equipment division. The company commands a market share of over 81 per cent in this segment and is the major supplier to most original equipment manufacturers (OEMs). This creates an almost monopoly-like situat