Not all competitive advantages are created equal. Some companies grow fast, but remain easy to copy. Others embed their edge deep into products, systems, and operating models that competitors struggle to replicate. In this piece, I break down what true product differentiation looks like from a fundamental investor’s lens - using Apple, Alphabet, and Birkenstock to show how durable advantages are built through integration, data, and long-term credibility rather than surface-level features.

Not all products are created equal. The strongest companies don’t just compete on price or growth, they sell products that customers depend on. Whether it’s mission-critical software, risk-mitigation tools, or habit-forming consumer platforms, high product necessity leads to stronger pricing power, retention, and resilience across market cycles. This framework helps investors identify businesses that are truly embedded in daily life or operations.

A company’s go-to-market (GTM) strategy plays a critical role in determining whether growth is scalable, margins are defensible, and competitive advantages are sustainable. Beyond great products, long-term investors must assess how effectively and efficiently a company reaches its target customers.