Scaling Advantage

In competitive moating, I’ve explained a simple truth that is often forgotten in tech:

One thing is a tech advantage, which is usually temporary; something else is a competitive moat, which is way more than tech, but it starts from there.

The tech side becomes the instrument to gain market shares via brand, distribution, and a vertical infrastructure able to sustain a larger and larger scaling advantage.

If we were to translate business competition into a sport made of “competitive moating,” that can be translated into the graphic below.

In other words, the more you can sustain scale, the more your business model is in tune to unlock the next phase of scale.

A business model advantage must drive scaling advantage, acting as a stepping stone for each successive growth stage.

Every competitive edge within the business model should catalyze unlocking the next phase of scale.

In this sense, the business model functions as a “scaling transition machine,” systematically enabling expansion by leveraging efficiencies, network effects, and differentiation.

Rather than being static, it must continuously evolve to support larger market reach, increased adoption, and deeper customer integration, ensuring that each level of success naturally paves the way for the next growth stage.

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