The most differentiated product? Might just be something nobody wants. And yet teams rally around it. Slide decks build toward it. Entire roadmaps get shaped by the question “What makes us different?” — when the far more important question is “What makes us better?”
Over my career consulting with dozens of companies on product strategy, I’ve found that the focus on differentiation is more destructive to clear strategic thinking than any other concept. The problem isn’t that differentiation is wrong — it’s that it’s incomplete.
What this essay explores
- Understand how the commodity-monopoly spectrum shapes pricing power and strategic differentiation.
- Distinguish uniqueness customers want from uniqueness that undermines your strategy.
- Identify advantages that compound over time, such as better prices and faster service.
- Focus strategic conversations on what is better, not merely what is different.
Differentiation matters only when it creates a durable advantage—not simply a point of distinction.
Key takeaway
Why the most common strategic advice is pulling your focus to the wrong thing.
