"Be Different" doesn't work for building products anymore

AI-powered coding tools have accelerated software development 5x, creating unprecedented competition where hundreds of products now compete in spaces that once had 5-10 players. Traditional differentiation strategies like unique UX, features, or business models no longer provide sustainable advantages since competitors can replicate them in days. The strategies that still work include proprietary distribution channels, complex niche markets, difficult integrations, true network effects, compounding data lock-in, regulatory barriers, and bundling by large platforms. Entrepreneurs must carefully choose where to compete rather than relying on product differentiation alone.