Instead of positioning against direct competitors in a saturated category, frame your message against what your customer is *actually* using today. A DAM tool resonated better when it shifted messaging from being a "better DAM" to helping users "move on from Dropbox and Drive."

In crowded markets, founders mistakenly focus on other startups as primary competition. In reality, most customers are unaware of these players. The real battle is against the customer's status quo: their current tools like spreadsheets, hiring a person, or using an old system. Your job is to beat those options.

When launching into a competitive space, first build the table-stakes features to achieve parity. Then, develop at least one "binary differentiator"—a unique, compelling capability that solves a major pain point your competitors don't, making the choice clear for customers.

Startups often fail by making a slightly better version of an incumbent's product. This is a losing strategy because the incumbent can easily adapt. The key is to build something so fundamentally different in structure that competitors have a very hard time copying it, ensuring a durable advantage.

Instead of guessing your competitive advantage, ask potential customers which other solutions they've evaluated and why those products didn't work for them. They will explicitly tell you the market gaps and what you need to build to win.

Don't wait for customers to ask about your value. Assume they view you and your competitors as commodities. It's your job to proactively explain why you're different and what additional value they receive for your price, effectively telling 'the rest of the story' beyond the basic product features.

A competitor may have a "better" product on paper, but buyers' demand is nuanced. A founder can win a deal against a well-funded rival by discovering the buyer's primary need is industry expertise, not more features. By aligning with this deeper "pull," the competitor's strengths become irrelevant.

Most positioning frameworks jump from features (e.g., "dashboard") to benefits (e.g., "save time"). Add a crucial "capability" layer that answers "What do I actually *do* with the product?" to clarify the use case and connect features to outcomes.

Now that generative AI is accessible to all, claiming "we have AI" is table stakes. The real competitive advantage lies in clearly articulating what the AI *does* for the user to create a differentiated product experience and value proposition. The key question is always, "So what?"