I asked, "What's your competitive advantage?" "We just make really good software, mate," replied the CEO. At the time of our conversation in 2007, this seemed like an unsophisticated strategy to me. After all, what if others copied their software? What was their defensibility?
It seems like BS when a company says their moat is "we just make really great product". But it's shockingly uncommon for things to stay "really good" with growth and over time. So it's more of a moat than people would have you believe!
Great point! I tend to think moat is an output, not an input. The best moats come from doing something that's objectively really hard. Making really good software (and then scaling) is crazy hard, hence creates an great moat.
It seems like BS when a company says their moat is "we just make really great product". But it's shockingly uncommon for things to stay "really good" with growth and over time. So it's more of a moat than people would have you believe!
Great point! I tend to think moat is an output, not an input. The best moats come from doing something that's objectively really hard. Making really good software (and then scaling) is crazy hard, hence creates an great moat.