Cheat codes for defend your castle5/4/2023 ![]() It’s not the goal of a company to create a ‘trap’. *Please note that we believe that a lock-in effect is only sustainable when users are genuinely happy using your product. Good luck with developing a sustainable competitive advantage! Are multiple stakeholders in the organization using your product? Are extra products built on top of the original product in order to enhance the experience (and based on customer feedback)?ġ2. Does the product have been (a bit) customized to the workflow of the client?ġ1. Does the product give the ability to purchase content or apps that are exclusively hosted on your platform?ġ0. Does the client organization have a superb experience and relationship with your customer success team?ĩ. Does the experience of the tool get better if more people in the organization use it?Ĩ. Does the product have recommendation engines that continuously provide a better tailor-made experience?ħ. Was there a considerable implementation time for the organization to use the product?Ħ. Does the product get better if users invest more time in it?ĥ. Is your product ingrained in the habits of the people using your product?Ĥ. Does your tool provide data analytics insights that can only be created by using your tool?ģ. Is your software tool integrated with core systems that the client is using?Ģ. Perfect for survival, embark on your own royal journey. Here is a 12 questions checklist that helps you evaluate how your company is doing:ġ. CrackedCubes presents: Waterfall Castle Set atop a series of large waterfalls, explore and defend your own idyllic fairy-tale castle. For instance, economies of scale, brand, legislative protection and control over scarce resources.įor software/SaaS companies, we see that the creation of a lock-in effect* is one of the most effective ways to create a defensible position. ![]() If you can sustain your valuable position, odds are higher you turn out to be a great company in the long run.ĭefensibility can come in many forms. Therefore, I like to know, how defensible your position as a company is. Competitors can start copying your product, new entrants might enter the market or something unforeseen might happen. During these 5 years, loads of things can happen. Upon investing I assume that a startup with 100k MRR can turn into a company of 20M ARR in less than 5 years’ time. However, few companies (can) explain why this competitive advantage is defensible over time. For instance, the product is integrated with more tools than any other player in the market or the range of feature is much more complete. Often, I come across startups that are different from their competitors and have a competitive advantage. Every day I have the privilege to check pitch decks and speak to many founders.
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