Strategy
Competitive Advantages
61 people are learning this skill right now!
Learn Competitive Advantages with the Practica AI Coach
The Practica AI Coach helps you improve in Competitive Advantages by using your current work challenges as opportunities to improve. The AI Coach will ask you questions, instruct you on concepts and tactics, and give you feedback as you make progress.Intro to Types of Moats
This section begins by introducing the concept of "moats" and how they can give a company a competitive advantage. Different types of moats are discussed, including brand, network effects, and economies of scale.
A Taxonomy of MoatsIf you read nothing else on this syllabus, read this article. It is extremely comprehensive: it covers dozens of moats in 4 high-level categories. https://www.saastr.com/whats-your-moat/
10 Ways to Build a Moat in SaaSAfter previously believing it is hard to have a moat as a Saa S company, Jason now believes at least 10 types exist: 1. Brand 2. Data 3. Structured Data 4. Partners + Ecosystem 5. Integrations 6. Agencies and Implementation Partners 7. Long-Term Contracts 8. Using Massive Amounts of Capital To Play In Every Segment 9. “Most Enterprise” Vendor 10. No Contract At All
Data Moats: Algorithms & ML
The first type of moat discussed is a "data moat," which refers to a company's ability to collect and analyze data. This section highlights how algorithms and Machine Learning can create a strong data moat by allowing a company to make better predictions and improve its products or services.
The New MoatsTraditional economic moats like economies of scale, network effects, and proprietary technology are being disrupted by cloud computing and open source. Systems of intelligence powered by artificial intelligence and combining multiple data sources are the new defensible business models. These systems of intelligence can exist as customer-facing applications, employee applications, or infrastructure systems. They create a virtuous cycle where more data improves the models which improves the product. If a system of intelligence can automate an entire workflow or create a new valuable workflow, it can become a deep moat.
Data Moats: Stickiness
This section then delves deeper into the concept of stickiness, another aspect of a data moat. Stickiness refers to a company's ability to keep customers using its products or services over time. This section explains how data can be used to create stickiness, such as by personalizing experiences or offering recommendations based on past behavior.
