How can a company build a competitive moat if its products are not easily distinguishable from a customer's perspective? (For example, bottled water brands, batteries, etc.)

Even in industries where products seem indistinguishable from a customer's perspective, companies can still build a competitive moat through various strategies:

1/ Cost leadership: By achieving economies of scale, optimizing supply chains, and finding cost efficiencies, a company can lower its production costs and offer products at more competitive prices than its rivals, thus gaining market share and creating a moat.

2/ Branding: Strong branding can create a perception of differentiation even when products are similar. By investing in marketing, advertising, and building a positive brand reputation, a company can make customers more likely to choose their product over competitors' offerings.

3/ Distribution networks: Establishing exclusive or extensive distribution networks can create a barrier to entry for competitors. By securing prime shelf space or partnering with key retailers, a company can make it difficult for rivals to access the same level of visibility and distribution.

4/ Product innovation: Continuously improving and adding unique features to a product can help create differentiation. Even in commoditized industries, incremental improvements or new product lines can help a company stand out.

5/ Customer service and experience: By providing exceptional customer service or creating a memorable customer experience, a company can differentiate itself from competitors and build customer loyalty.

6/ Strategic partnerships: Forming alliances with other companies, suppliers, or key industry players can give a company access to resources, distribution channels, or technologies that create a competitive advantage.

7/ Vertical integration: Controlling multiple stages of the production process, from raw materials to finished products, can help a company reduce costs, ensure quality, and maintain control over its supply chain, creating a moat against competitors.

8/ Intellectual property: In some cases, companies can protect their products or processes through patents, trademarks, or copyrights, which can create a legal barrier to entry for competitors.

By combining one or more of these strategies, even companies in industries with seemingly indistinguishable products can establish a competitive moat and differentiate themselves from rivals.