An illustrative business
The following scenario is illustrative. A hypothetical outcome-based provider challenges a seat-priced incumbent. It is counter-positioning only if the incumbent’s economics make imitation unattractive; a different invoice format is not enough.
Read the evidence
MoatDefender examines a claimed advantage beside its supporting evidence. A category name alone does not establish a company’s moat. Read the dates, sources and gaps before interpreting a reading.
The agent economy
Cheaper software changes what competitors can reproduce. The practical effect depends on the specific business and its customers. Public research does not establish that one company’s advantage will endure.
Common questions
- What does counter-positioning mean?
- Counter-positioning uses a business model that an incumbent would damage its existing business to copy. Counter-positioning requires evidence of that incumbent conflict.
- Does a Power establish investment value?
- A Power describes a possible source of competitive advantage. A Power does not establish valuation or predict investment returns.
Sources
Background reading only. No affiliation with or endorsement of MoatDefender is implied.