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Economic Moat

CDW has no economic moat

Customers can buy many of the same technology products from competing sellers or directly from manufacturers, leaving CDW exposed to price comparisons. Its technical help and purchasing convenience attract customers, but do not give it exclusive control over the products those customers need.

Why CDW has no moat

Limited purchasing lock-in

For standard hardware and software purchases, customers can change sellers without replacing their underlying technology, limiting the cost of moving purchases away from CDW.

Products available elsewhere

CDW sells other companies’ technology in a market where rival resellers and manufacturers also compete, limiting its ability to charge more simply because of its name.

Scale does not exclude rivals

CDW’s size supports broad service and delivery capabilities, but competition from large technology providers and online sellers suggests it lacks a cost edge that rivals cannot match or bypass.