Product Craft Can Overcome Distribution Advantages
by Peter Dang on June 22, 2025
When competing against products with massive distribution advantages, exceptional product craft can create enough delight to overcome switching costs and drive adoption.
Peter Dang, who led product at Facebook, Instagram, Uber, and OpenAI, observed this pattern repeatedly throughout his career. He explains that while distribution advantages are powerful, there is a level of product craft that makes it worthwhile for users to switch or try something new.
He cites Granola (a meeting transcription and summarization tool) as a prime example. Despite Google Meet, Microsoft Teams, and Zoom having enormous distribution advantages, Granola's attention to detail and delightful user experience convinced him and many others to install new software and even evangelize it to friends.
"They have these little edges sanded down just right and they've really figured out a way to make it so delightful that it's like, 'Yeah, I will install this piece of software. Yes, 100% I will talk to my friends about this because it is so life-changing,'" Dang explains.
This principle extends to AI products as well. While initially the focus was on which company had the best model, the competitive landscape has shifted toward who delivers the best workflow and product experience. Dang points to several AI startups like Cursor, Windsurf, Lovable, and Bolt that broke through despite Microsoft's Copilot having distribution advantages, early mover advantage, and infrastructure benefits.
The key to this approach is obsessive attention to craft while maintaining perspective on which details actually matter. Users are demanding and will gravitate toward products that feel exceptionally well-crafted, even when it means overcoming the friction of switching from an incumbent solution.
For product builders, this means identifying the elements that truly delight users, perfecting those aspects, and creating experiences so compelling that users feel compelled to tell others about them. When your product craft reaches this level, word of mouth can help overcome even the strongest distribution advantages.