Proposition audit
Become radically different
Break free from price pressure and low margins. See how you score against your top 5 competitors on the 9 strategic levers that decide who wins long-term.
Why it matters
Why have a durable differentiator?
Companies with one or more durable differentiators outperform the market on revenue growth, profit margin and shareholder return. The more durable differentiators you own, the steeper the lift.
| GROUP | N | AVG REV GROWTH (3Y CAGR) | AVG EBITDA MARGIN | AVG 3-YR STOCK | AVG 5-YR STOCK |
|---|---|---|---|---|---|
| With durable differentiators | 26 | +18.3% | 15.0% | +9.8% | +21.2% |
| Without durable differentiators | 58 | +7.6% | 10.0% | -8.2% | -3.1% |
The playbook
How companies build a moat and sit dry in their castle
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1. Choose your differentiator
Pick the differentiator where you can be the best in the world relative to competitors.
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2. Excel relentlessly
Invest, iterate and improve until you lead by a wide margin.
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3. Build a moat
Create strong barriers that are hard for competitors to cross.
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4. Sit dry in your castle
Enjoy protection, pricing power and resilience through cycles.
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5. Defend & evolve
Continuously defend your moat and evolve before others catch up.
Be the best in one (or more) of the durable differentiators.
Build your moat. Outsmart your competition. Win for the long term.