This is such a common trap. I think CEOs get so caught up in the "how are we different?" question that they forget to ask "are we actually solving the problem better?" The irony is that obsessing over differentiation often leads to building features nobody wants just to be unique.
The hardest thing is accepting that in many markets, the winning move is just executing the basics really well... not inventing some clever twist that makes you feel special.
Love it. You see this a lot in B2B in category creation. A lot of time those efforts are trying to be unique when the product just isn't better on the dimensions that matter. It's fancy wrapping around an empty box.
This is especially true right now w/ AI. There is what feels like infinite competition in every category. Every single thing you come up with it feels like there are already 3 or 4 others saying/doing the same thing. Which steers people further and further away from being better on what matters to being unique in a way that no one cares about.
The AI impact makes a lot of sense and explains why I'm seeing many CEOs and CPOs twisting themselves into knots trying to find a unique strategy.
This connects back to something we were talking about a few months ago about the trend towards bundling. Good bundles are usually built on core products that everyone wants and needs. The real advantage comes not from being different, but from being the one-stop shop that does the basics really well. When everyone can spin up similar AI features, maybe the winning move is just being the place where people can get everything done without jumping around.
Very timely point and one that often gets missed by product where the framework gospel is "what makes us different". I just switched from Spotify to YouTube Music (which comes "for free" with my YouTube Premium subscription) and can see how similar the two products are: basically the are commodities. But YouTube Premium's advantage is bundling it with Youtube Premium.
That’s a fantastic example. A few years ago I read a piece (I think it was by Stratechery) comparing music streaming with video streaming and they reached a similar conclusion. The music library is controlled by the record companies and hence it's a commodity. This is the same across any music streaming platform that can strike the licensing deals. Record companies have the incentive to strike licensing deals with as many platforms as possible. Meanwhile video content, especially since originals started being such an important part of streaming, is exclusive to each platform so each platform has a "monopoly" on its content.
Thank you for writing this! This is insightful and also relieving. I’ve struggled with the differentiation question in the past, but that was the most popular framing for strategy.
In the end, the goal is winning. Even a slightly inferior product, in terms of experience and features, can be far more successful if it stacks up competitive advantages like a large distribution channel that’s unavailable to others.
Differentiation question is limiting - makes one think in unique features and experiences only. Better to look for competitive advantages, which could be even beyond the product in GTM and support.
Quite often startup CEOs don’t understand this and believe that differentiation is the absolution in a commodity market.
This is such a common trap. I think CEOs get so caught up in the "how are we different?" question that they forget to ask "are we actually solving the problem better?" The irony is that obsessing over differentiation often leads to building features nobody wants just to be unique.
The hardest thing is accepting that in many markets, the winning move is just executing the basics really well... not inventing some clever twist that makes you feel special.
Love it. You see this a lot in B2B in category creation. A lot of time those efforts are trying to be unique when the product just isn't better on the dimensions that matter. It's fancy wrapping around an empty box.
This is especially true right now w/ AI. There is what feels like infinite competition in every category. Every single thing you come up with it feels like there are already 3 or 4 others saying/doing the same thing. Which steers people further and further away from being better on what matters to being unique in a way that no one cares about.
The AI impact makes a lot of sense and explains why I'm seeing many CEOs and CPOs twisting themselves into knots trying to find a unique strategy.
This connects back to something we were talking about a few months ago about the trend towards bundling. Good bundles are usually built on core products that everyone wants and needs. The real advantage comes not from being different, but from being the one-stop shop that does the basics really well. When everyone can spin up similar AI features, maybe the winning move is just being the place where people can get everything done without jumping around.
Very timely point and one that often gets missed by product where the framework gospel is "what makes us different". I just switched from Spotify to YouTube Music (which comes "for free" with my YouTube Premium subscription) and can see how similar the two products are: basically the are commodities. But YouTube Premium's advantage is bundling it with Youtube Premium.
That’s a fantastic example. A few years ago I read a piece (I think it was by Stratechery) comparing music streaming with video streaming and they reached a similar conclusion. The music library is controlled by the record companies and hence it's a commodity. This is the same across any music streaming platform that can strike the licensing deals. Record companies have the incentive to strike licensing deals with as many platforms as possible. Meanwhile video content, especially since originals started being such an important part of streaming, is exclusive to each platform so each platform has a "monopoly" on its content.
Thank you for writing this! This is insightful and also relieving. I’ve struggled with the differentiation question in the past, but that was the most popular framing for strategy.
In the end, the goal is winning. Even a slightly inferior product, in terms of experience and features, can be far more successful if it stacks up competitive advantages like a large distribution channel that’s unavailable to others.
Differentiation question is limiting - makes one think in unique features and experiences only. Better to look for competitive advantages, which could be even beyond the product in GTM and support.