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Economic Moat

Siemens has no economic moat

Rivals can develop competing products and challenge Siemens on price, so its engineering knowledge and size do not consistently keep competitors out. Siemens must keep winning business through better products and service rather than rely on barriers that protect profits for many years.

Why Siemens has no moat

Technology is not exclusive

No assured cost lead

Markets support competing suppliers

The explanation behind each reason