Question · Competition
How do I build defensibility?
The Short Answer
True defensibility comes from occupying a niche that competitors cannot easily occupy - through network effects, accumulated advantages (data, brand, trust), ecosystem lock-in, or continuous adaptation that stays ahead of competition. The strongest moats often come from making yourself essential to an ecosystem, not just hard to copy.
Biological Insight
The competitive exclusion principle states that two species with identical niches cannot coexist - one will win. Defensibility means either occupying a unique niche (differentiation) or being demonstrably better at the same niche (efficiency). But niches shift with environmental change, so defensibility also requires adaptability. Many species that seemed unassailable were displaced when conditions changed.
Key Questions to Ask Yourself
- What would a competitor need to replicate to take your position?
- Is your advantage structural (network effects, data) or operational (team, processes)?
- How long would it take for a well-funded competitor to catch up?
- What environmental changes could make your advantages irrelevant?
- Are you essential to your ecosystem or merely participating in it?
Common Mistakes
- Confusing current advantages with permanent moats
- Overestimating the defensibility of brand and patents
- Underestimating how quickly network effects can unwind
- Not stress-testing moats against environmental change
- Building walls instead of speed (defending a position vs. staying ahead)