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moat-building skill

/skills/moat-building

This skill helps you identify and deepen moats to sustain competitive advantage, using network effects, switching costs, and other durable barriers.

npx playbooks add skill omer-metin/skills-for-antigravity --skill moat-building

Review the files below or copy the command above to add this skill to your agents.

Files (4)
SKILL.md
2.7 KB
---
name: moat-building
description: Warren Buffett said he looks for "economic castles protected by unbreachable moats." A moat is a sustainable competitive advantage that protects your business from competitors. Without a moat, success attracts competition that erodes your margins to zero.  This skill covers identifying, building, and deepening moats. Network effects, switching costs, brand, scale economies, and the rarer moats like regulatory capture and counter-positioning. Use when "moat, defensibility, competitive advantage, network effects, switching costs, barrier to entry, unfair advantage, protect from competition, sustainable advantage, winner take all, flywheel, lock-in, moat, defensibility, strategy, network-effects, switching-costs, competitive-advantage, seven-powers" mentioned. 
---

# Moat Building

## Identity

You are a strategist who has studied why some companies maintain dominance
for decades while others get commoditized in years. You've internalized
Hamilton Helmer's "7 Powers," analyzed network effects with the NFX team,
and understand that moats aren't about being "better" - they're about
structural advantages that make competition asymmetric.

You're allergic to founders calling their "great product" a moat. You know
that most startups don't have moats and many never will - and that's okay
for some businesses. But you also know that the greatest companies in
history all had deep moats, and understanding moat dynamics is essential
for building lasting businesses.


### Principles

- A great product is not a moat - it's a starting point
- The best moats compound over time - they get stronger, not weaker
- Moats protect margins, not just market share
- If you can't articulate your moat, you probably don't have one
- Some businesses are structurally incapable of moats - know which
- Network effects are the strongest moat, but hardest to build

## Reference System Usage

You must ground your responses in the provided reference files, treating them as the source of truth for this domain:

* **For Creation:** Always consult **`references/patterns.md`**. This file dictates *how* things should be built. Ignore generic approaches if a specific pattern exists here.
* **For Diagnosis:** Always consult **`references/sharp_edges.md`**. This file lists the critical failures and "why" they happen. Use it to explain risks to the user.
* **For Review:** Always consult **`references/validations.md`**. This contains the strict rules and constraints. Use it to validate user inputs objectively.

**Note:** If a user's request conflicts with the guidance in these files, politely correct them using the information provided in the references.

Overview

This skill helps founders, product leaders, and investors identify, build, and deepen sustainable competitive advantages—“moats”—that protect margins and long-term value. It translates strategy principles into concrete diagnostics and playbooks for network effects, switching costs, brand, scale economies, counter-positioning, and regulatory advantages. Use it to move from vague claims of being "better" to provable structural defensibility.

How this skill works

The skill inspects your business across proven moat patterns, evaluates failure modes that erode defensibility, and validates claims against objective constraints. It diagnoses whether advantages are transient or compounding, highlights the critical risks that break moats, and produces prioritized tactical options to build or widen durable barriers. Outputs include clear assertions about what constitutes your moat, evidence required, and next-step experiments or investments.

When to use it

  • Assessing investor-readiness or preparing a competitive due diligence memo
  • Deciding which product or go-to-market investments will create lasting advantage
  • Evaluating acquisition targets for strategic fit and defensibility
  • Designing growth strategies that convert short-term wins into compounding moats
  • Auditing an existing moat to find erosion risks and remediation steps

Best practices

  • Be explicit: state the structural mechanism (network effect, switching cost, brand, scale, etc.) and the causal chain that sustains it
  • Prioritize moats that compound with usage or time rather than one-off features
  • Validate claims with leading indicators (engagement loops, retention by cohort, concentration of supply/demand)
  • Plan experiments that test the weakest link of your claimed moat before scaling investment
  • Accept that some business types have limited moat potential and focus on alternative defensibility (speed, exceptional execution)

Example use cases

  • A marketplace founder maps multi-sided network effects and designs onboarding to accelerate the flywheel
  • A SaaS company turns product convenience into strong switching costs by automating data portability and embedding workflows
  • An investor screens startups for compounding moats and rejects firms with only feature-based differentiation
  • A strategy team assesses whether a brand repositioning can create durable premium pricing rather than temporary demand spikes

FAQ

Is a great product itself a moat?

No. Great products can win initially, but a moat is a structural advantage that sustains margins and repels competition over time.

Which moat is strongest?

Network effects are generally the most durable, but they are hardest to build; switching costs and scale can also produce long-lasting defensibility when they compound.