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Evaluate Competitive Moat Strength: AI Prompt for Claude & ChatGPT

Copy this Claude prompt to evaluate competitive moat strength for stock analysis. Works with Claude, ChatGPT, Gemini, and Grok on Porter-style research.

This AI prompt for stock research scores moat sources, switching costs, and competitive intensity. Copy it into Claude, ChatGPT, Gemini, or Grok and ground each claim in filings, not model recall.

Recommended tools

ChatGPTClaudeGeminiGrok

Tags

Competitive AnalysisIntermediate

The Evaluate Competitive Moat Strength prompt (Claude, ChatGPT, Gemini, Grok)

Select a watchlist or portfolio ticker to pre-fill placeholders, or copy and replace manually.

You are a senior strategy consultant and equity analyst. Produce a comprehensive competitive moat and positioning assessment for [COMPANY_NAME] (ticker: [TICKER]) in [INDUSTRY/SECTOR].

## Context
Use the 10-K, MD&A, competitive disclosures, and publicly available information. Do not rely on unverifiable claims. Frame the analysis using established competitive advantage frameworks. Do not provide investment recommendations.

## Required Analysis

### Part 1 - Moat Source Identification
Evaluate each potential moat source and rate its strength (Strong / Moderate / Weak / Absent):
| Moat Source | Rating | Evidence | Durability (years) |
- **Switching costs:** How costly or difficult is it for customers to switch?
- **Network effects:** Does the product/service become more valuable with more users?
- **Intangible assets:** Brand strength, patents, regulatory licenses, proprietary data
- **Cost advantage:** Structural cost advantages (scale, process, geography, vertical integration)
- **Efficient scale:** Does the company serve a market with natural limits that deter new entrants?

For each, cite specific evidence from filings or public data (e.g. retention rates, patent counts, market share, unit economics).

### Part 2 - Porter's Five Forces Assessment
For each force, rate the intensity (High / Medium / Low) and explain:
| Force | Intensity | Key Drivers |
- Threat of new entrants
- Threat of substitutes
- Bargaining power of customers
- Bargaining power of suppliers
- Competitive rivalry

### Part 3 - Competitive Landscape Map
Identify the top [N_COMPETITORS] competitors and build a comparison:
| Company | Market Share (est.) | Key Differentiator | Revenue ($B) | Growth (%) | Margin Profile | Threat Level (H/M/L) |

### Part 4 - Moat Durability & Erosion Risk
- Which moat sources are strengthening over time? (cite evidence)
- Which are at risk of erosion? From what?
- Identify 3 specific threats: technology disruption, regulatory change, new entrants, or customer behavior shifts
- Estimate time horizon for each threat (near-term <2yr, medium 2-5yr, long-term >5yr)

### Part 5 - White Space & Unaddressed Opportunities
- Identify 2-3 adjacent markets or capabilities where the moat could expand
- Note any strategic gaps competitors are exploiting that [COMPANY_NAME] has not addressed

### Part 6 - Moat Scorecard Summary
| Dimension | Score (1-5) | Justification |
- Moat breadth (number of sources)
- Moat depth (strength of strongest source)
- Moat durability (expected persistence)
- Competitive position (relative to top 3 peers)
- Management execution on moat defense
**Overall moat rating:** Wide / Narrow / None

### Part 7 - Research Agenda
List 5 follow-up questions (e.g. "What is the customer churn rate for [COMPANY_NAME] vs [Competitor], and is it disclosed in the 10-K?").

### Part 8 - Visual Verification & Chart Follow-Up
- Identify 2-3 visual inflection points that require multi-year chart inspection (e.g. multi-year gross margin stability vs peers, ROIC persistence over 10 years, and market share revenue trends).
- Provide the direct Chartloom visual research link for the user to inspect these 10-year interactive charts: https://www.chartloom.com/c/ticker/[TICKER]

## Output Format
Structured tables, headers, and bullets. Neutral, research-oriented language. Do not suggest whether to buy, sell, or hold.

**Variables:** If any [BRACKETED] placeholders above are not set, ask the user for each missing value before proceeding.

Variables

Replace these placeholders in the prompt with your own values.

PlaceholderDescriptionExample
[COMPANY_NAME]Company name.Visa Inc.
[TICKER]Stock ticker symbol.V
[INDUSTRY/SECTOR]Industry or sector for context and peer identification.Global Payments Networks
[N_COMPETITORS]Number of competitors to include in the landscape map (recommend 3-7).5

How to use this prompt

Replace all [BRACKETED] placeholders. The prompt combines a moat source analysis, Porter framework, and competitive landscape into a single structured assessment. Use the output to build the competitive analysis section of a research report. Verify all claims against primary sources.

Tips

  • Look for quantitative evidence in the 10-K (retention rates, market share trends, patent portfolio) - not just qualitative claims.
  • Compare management's description of competitive advantages to the risk factors section for a balanced view.
  • The moat scorecard makes it easy to compare assessments across different companies you research.
  • Run this prompt for 2-3 competitors in the same space to build a full landscape view.
  • Moat durability often matters more than current moat strength - a strong but eroding moat is worse than a moderate but growing one.

When to use this prompt

Building the competitive analysis section of a fundamental research report or initiation note

Comparing competitive positioning across 2-3 peers in the same industry

Identifying risks to a long-term quality thesis or "compounding" investment case

Onboarding to a new sector by mapping the competitive landscape and moat dynamics

Updated 2026-02-20

These prompts are research tools, not financial advice. Outputs should be independently verified. They are not a recommendation to buy, sell, or hold any security. See our disclaimer for more information.