Markets · 6 pages · 12 min
Why the story needs a mechanism
A moat story explains nothing until it names the mechanism that would stop a rival.
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From the opening
A story about lasting advantage needs a mechanism, a concrete process by which a rival's attempt to copy, undercut, or poach actually fails. Without that process, the story is a description of today's success wearing the costume of a defense. The opening covers name how the rival fails, profit is not the cause, and each product needs its own.
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Inside
- Name how the rival fails
- Profit is not the cause
- Each product needs its own
- Ask what would break it
- Where the idea stops applying
- A distinction worth keeping
Sources
- Causal competitive advantage
- Barriers that deter entry