OPINION: Your product is no longer a competitive advantage
A friend of mine runs a company that builds software for other companies. He has the same problem in most sales meetings. He shows what the system can do, the prospect leans forward and asks how it works, and my friend, who is not daft, goes slightly vague. If he explains it properly, they might […] The post OPINION: Your product is no longer a competitive advantage appeared first on EU-Startups .
In a world where AI is becoming more advanced and accessible, companies must recognize that their products are no longer a competitive advantage. The gap between a clever demo and a defensible company has become uncomfortable. AI has lowered the development cost for everyone, including competitors. Suppliers now have teams that can sell what you sell, and platforms like Google's AI Overviews are answering customer questions, potentially reducing traffic to your website.
The moat of your product comes from knowing how to achieve better results and understanding the nuances that competitors cannot replicate. Proprietary data and unique features can help, but they may not be enough to protect you from a complete replacement by a competitor. If a product's advantage can be easily replicated without understanding the underlying complexities, customers may switch to a cheaper alternative.
Founders should be prepared to switch providers if their current supplier's roadmap no longer aligns with their customers' needs. Regulations may become necessary to make entering the market more expensive for competitors, but it is essential to consider who can afford to comply with these rules. Ultimately, a startup must ensure they can change the engine and have a moat that can withstand a change of model.
Written by urgent.news from EU-Startups's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
