In an era where every industry is saturated with competition, crafting a unique value proposition (UVP) has become one of the biggest challenges for startups and established businesses alike. The idea of a UVP is simple: clearly articulate why your product or service is different and better than the alternatives. But in reality, finding something truly unique—let alone defensible—is easier said than done.
Why Is It So Hard to Create a Unique Value Proposition?
MARKET SATURATION
1. Market Saturation
No matter what industry you’re in, chances are there’s already a flood of competitors offering similar solutions. Whether it’s digital health, SaaS, or e-commerce, standing out requires more than just incremental improvements.
Use Case: Take digital therapeutics (DTx). Pear Therapeutics pioneered prescription digital therapeutics (PDTs) and initially had a strong UVP—FDA-approved software that could treat conditions like substance use disorder. But as more competitors entered the space, including pharma-backed startups, their differentiation weakened, making it harder to sustain their market position.
FEATURE PARITY & FAST FOLLOWERS
2. Feature Parity and Fast Followers
Even if you launch with a novel feature, competitors can quickly copy it. Unless your innovation is protected by intellectual property (IP) or deep expertise, any unique advantage can fade fast.
Use Case: Clubhouse, the once-popular audio-only social media platform, had a strong UVP at launch: real-time, drop-in conversations. However, Twitter (now X) and LinkedIn quickly replicated the feature, making Clubhouse’s differentiation nearly irrelevant.
SHIFTING CUSTOMER EXPECTATIONS
3. Shifting Customer Expectations
What might have been unique five years ago is now just table stakes. Customers expect seamless experiences, integrations, and personalization across all products, making it harder to create a UVP that feels truly fresh.
Use Case: In telemedicine, early players like Teladoc and Amwell initially stood out because they made virtual doctor visits possible. But today, with virtual care integrated into nearly every healthcare system and insurer, the value proposition has shifted from “access to care” to “better, more coordinated care.”
LACK OF DEEP CUSTOMER INSIGHT
4. Lack of Deep Customer Insight
Many companies create UVPs based on what they think is unique, rather than what customers actually value. If your differentiation isn’t tied to a pressing customer pain point, it won’t stick.
Use Case: Babylon Health initially positioned itself as an AI-powered healthcare provider that could replace traditional doctors for diagnosis. However, patients didn’t trust AI-only diagnoses, and regulators scrutinized the claims. Instead of being a true differentiator, their UVP became a liability.
HOW TO BUILD A STRONGER UVP
How to Build a Stronger UVP
Despite these challenges, some companies still manage to craft and sustain strong UVPs. Here’s how:
FOCUS ON A NICHE
1. Focus on a Niche
Instead of trying to compete broadly, dominate a niche where your value is undeniable.
Example: Instead of being another generic CRM, Veeva built a UVP by creating a CRM specifically for life sciences companies, with industry-specific compliance features.
LEVERAGE DREP TECH OR PROPRIETARY DATA
2. Leverage Deep Tech or Proprietary Data
If your advantage comes from technology that is hard to replicate, you have a better shot at sustaining differentiation.
Example: Tempus applies AI and real-world data to personalize cancer treatment. Its proprietary datasets make it hard for competitors to offer the same value.
BUILD AN ECOSYSTEM;NOT JUST A PRODUCT
3. Build an Ecosystem, Not Just a Product
A standalone product can be copied, but an integrated ecosystem is much harder to replicate.
Example: Apple’s UVP isn’t just the iPhone; it’s the seamless experience between the iPhone, Mac, iPad, and Apple Watch that makes switching costly for users.
EVOLVE WITH YOUR MARKET
4. Evolve with Your Market
A UVP isn’t static—it must evolve as customer needs change.
Example: Slack started as a workplace chat tool but continuously refined its UVP around “reducing workplace friction,” integrating deeply with enterprise workflows.
A truly unique value proposition is rare, and even when you find one, it won’t stay unique forever. The key isn’t just to create differentiation—it’s to continuously reinforce and evolve it based on market shifts, customer needs, and competitive dynamics.
If you’re struggling to define your UVP, start by asking: What is the one thing we can do better than anyone else, in a way that customers deeply care about? Your best shot at uniqueness isn’t just being different—it’s being irreplaceable.
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