Unique Features Are Not a Defensible Moat

Founders, especially those with a technical background, often believe that their unique features are what differentiate them from the competition. While innovative features are a fantastic way to gain an initial advantage, they do not constitute a durable, long-term competitive moat.

The "Hamster Wheel of Features"

• Features are easily copied: Any successful feature you build can, and will, be duplicated by competitors within a few months.
• Temporary advantage: This means your differentiation is fleeting. To stay ahead, you must constantly build more new features.
• It's a tactic, not a strategy: Relying solely on features for your advantage puts you on a "hamster wheel," where you have to keep running just to stay in the same place.

What Features Can Do:

• Gain initial traction: A killer feature can be the wedge that gets you a foothold in a competitive market.
• Build a brand around innovation: Consistently shipping innovative features faster than legacy competitors can become part of your brand identity, which is a moat.

By definition, a moat should be an advantage that endures and grows stronger over time. Features, by themselves, do not meet this criterion. While you should continue to innovate, your long-term strategy must focus on building one or more of the four defensible moats: integrations, brand, owned traffic, or high switching costs.

Tags: #SaaS #strategy #competition #moat #product-management #features