11 Companies With A Competitive Advantage For Long-Term Investors

11. United Parcel Service, Inc. (NYSE:UPS)

United Parcel Service, Inc. (NYSE:UPS) is another large logistics company that has also managed to build a vast network around the world to rival its competitor FedEx. In order to bring its services closer to customers, United Parcel Service, Inc. (NYSE:UPS) is franchising its stores, with owners offering package delivery and some other shipping-related services, compared with FedEx, which owns its retail outlets and provides a large range of services aside from shipping (like copying and printing). Both FedEx and United Parcel Service, Inc. (NYSE:UPS) are expected to further thrive with the growth of eCommerce, although each may face some competition from Amazon, which is building its own shipping network. The good news is that it’s unlikely that there will be any other major competition, because building logistics networks of matching size requires huge capital investments that don’t make much sense for any company to make given the existing competition.

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That concludes our list of 11 companies with a competitive advantage for long-term investors. Obviously there are many others and most of them have a combination of advantages that help them prosper and stay ahead of competition. It’s important to analyze a company’s business model and identify its competitive advantages as well as their sustainability, as it represents one of the main factors that will determine whether or not the company will be able to stay in business and thrive for many years to come.

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