Nathan Baschez is the cofounder and CEO of AI word processor Lex. He cofounded Every, was the first employee at Substack, and co-created Product Hunt.
The Four Strategies
How to understand the essence of any business
Feb 11, 2020 · 2 min readUpdated Sep 1, 2026
There’s really only four competitive strategies:
- Broad + differentiated
- Broad + low cost
- Niche + differentiated
- Niche + low cost
Of course, this might strike you as a wild oversimplification. But I want to convince you that it’s not.
In fact, I believe this lens is one of the most powerful tools that any founder, operator, or investor can have. Because it cuts to the core of the two most important challenges every business has to overcome in order to succeed: why would anyone buy your product, and how can you make money selling it?
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