Moat Definition

Position in HORIZON workflow: v0.2 Competitive Landscape → v0.3 Moat Definition → v0.3 Pricing Model Selection

Moat Type Taxonomy

Every moat falls into one of six types. Identify primary + secondary moats per competitor:

For micro-SaaS: Switching costs and brand/trust matter most. Network effects and scale rarely apply.

Moat Strength Tiers

Rate each competitor's defensibility:

Gate rule: Don't compete where incumbent has Impenetrable or Strong moat unless targeting segment they explicitly ignore.

Switching Cost Inventory

Quantify ALL switching costs — the sum determines moat strength:

Calculation: Sum hours + dollars. >$5K or >40hr = material switching cost.

Targeting Decision Framework

Use moat analysis to determine where to compete:

Moat Impenetrable/Strong → DON'T COMPETE HERE
                          ↓ unless
                          Target ignored segment (SMB, specific vertical)
                          
Moat Moderate → WEDGE STRATEGY
                ↓ identify
                Entry point that bypasses switching friction
                
Moat Weak/Eroding → DIRECT COMPETITION
                    ↓ execute
                    Feature + price attack on their core

Wedge Opportunity Signals

A wedge exists when:

• Competitor moat doesn't apply to specific segment
• One feature has LOW switching cost (can start there)
• Integration allows coexistence (not replacement)
• Price sensitivity > switching friction

Analysis Workflow

Step 1: Pull Competitor Data

Retrieve CFD- entries from v0.2 Competitive Landscape. For each competitor, you need: pricing, complaints, feature set.

Step 2: Identify Moat Type

For each competitor, determine primary moat type. Use evidence from reviews, pricing structure, integration depth.

Step 3: Rate Moat Strength

Apply tier criteria. Flag if insufficient evidence (Tier 4-5 confidence).

Step 4: Inventory Switching Costs

Complete the 5-category switching cost assessment. Quantify hours + dollars.

Step 5: Identify Vulnerabilities

Where is their moat weakest? Which segments do they ignore? What's eroding?

Step 6: Generate IDs

CFD entries (customer_feedback.md): Template: assets/cfd-moat-analysis.md

CFD-MOT-###: [Competitor] Moat Analysis — [Moat Type], [Strength Tier]

BR entries (BUSINESS_RULES.md): Template: assets/br-targeting.md

BR-TGT-###: [Targeting Rule] — based on [Competitor] moat weakness

Anti-Patterns to Avoid

Output Requirements

Before advancing to Our Moat Articulation:

• ≥3 competitors with moat type identified
• ≥2 competitors with switching costs quantified
• Moat strength tier assigned (with evidence)
• Targeting decision per competitor (compete/avoid/wedge)
• CFD-MOT entries created (≥3)
• BR-TGT entries created (≥2)

Downstream Connections

Detailed References

• Good/bad examples: See references/examples.md
• CFD-MOT template: See assets/cfd-moat-analysis.md
• BR-TGT template: See assets/br-targeting.md