Competitive Moat Analysis

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---
name: Competitive Moat Analysis
description: Identify durable competitive advantages and pressure-test them honestly.
---

# Competitive Moat Analysis

A moat is a structural reason your advantage compounds rather than erodes.
Most "moats" founders cite are features a funded competitor copies in a
quarter. This skill separates real moats from wishful thinking.

## The Seven Real Moats

1. **Network effects** — Each user makes the product more valuable to others.
   Test: does value scale with n, n-squared, or not with n at all?
2. **Switching costs** — Leaving is expensive in time, data, or risk. Test:
   what would a customer lose by churning on Monday?
3. **Scale economies** — Unit costs fall as you grow, structurally below
   what a smaller rival can reach.
4. **Counter-positioning** — Incumbents cannot copy you without damaging their
   existing business. The strongest moat against giants.
5. **Cornered resource** — Exclusive access to talent, IP, data, or supply.
6. **Brand** — Customers pay more or choose faster because of trust, not
   features.
7. **Process power** — An organizational capability rivals cannot replicate… install to load the full skill