The Competitors can help to develop the market 2020

There is also benefit to having competition. Competition will help to create a market space for a new product by educating the customer base. Besides, it keeps you paranoid. You should really use your competitors as a motivation and also try to learn from them

The Competitors can help to develop the market 2020

Competitors can help to develop the market

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There is also benefit to having competition. Competition will help to create a market space for a new product by educating the customer base. Besides, it keeps you paranoid. You should really use your competitors as a motivation and also try to learn from them. so



  • No matter whether you are first or not, there will always be competitors. Give your competition credit for what they have done, but not for what they could do. You need to layout the battle map before you start.
  • Be paranoid, stay paranoid.
  • Differentiate your company by out-focussing your competition.
  • Out-navigate your large competitors. Focus and speed are the most important advantages of a small company.
  • Already in the early stage think about what barriers to entry you can create to hinder your competition from following you.


The problem with a huge market opportunity is that usually everybody else sees it. The trick is to identify the emergence of a new market. If it is already emerged it is often too late. The really smart companies not only identify, but lead it. They will lead it, because they are the first in there and nobody has anything even close to the technology they have. As an entrepreneur you are laying a bet. You are betting that you have figured something out at a level of complexity that other people have not figured out. You are also betting that you have the set of skills that somebody else at another company does not have. And you bet that you can assemble a team around you that brings skills in that other people just do not have.

Nonetheless, you will have to face competition from large corporations and small companies and you have to worry about both. The big armies have more resources. The small competitors will fight with the same weapons as you do. Both are dangerous. Before you even start a company you have to think who is going to be your friends, your allies and your competitors. You will have to find a territory considerable enough that you can build a beachhead, grow that beachhead and fortify it before competition moves in. As an entrepreneur you should never underestimate your competitors. But you also do not want to make the mistake of overestimating them. Otherwise you might not pursue a promising opportunity. You should only give them credit for what they have done, but not necessarily for what they could do.



You should not play somebody else’s game. You will have to define your own game and build the team around your game plan. Then the rest of the world will have to respond to you and your team’s game plan and you will not be limited by the rules and the boundaries of an existing game.

When you are the market leader people inside the company should be humble about that. Microsoft and other successful companies do not take their success for granted, they are working always very hard. They think that anytime someone can come along and beat them, they do not rest. They are permanently paranoid. Therefore if you are successful you should not sit back and start to enjoy it, but you have to keep going, you have to

keep working and innovating, because if you do not, someone else will. There will always be another laser-focused startup that will try to beat you, so never be complacent.

After the first round has been won by the flyweights, round two is about the heavyweights joining the match. An opportunity has been proven and leadership has been established in round one, but then the big guys become attracted to the opportunity. The competitive advantage is rarely technology. Anyone who really wants to, can catch up. If Microsoft or IBM want to get where you are, they can get there. You really need to differentiate. And the differentiation against your large competitors comes from the focus of your company. The unique advantage of small companies has always been that they are very focused. A company is actually a big combined vector of lots of small vectors of each individual and each department. A small company can get everyone focused in the same vector, everybody pointing in the same direction. The vectors will add up, if they point in same directions, if not they cancel each other. In big companies those vectors tend to point at very different directions and in the end this big vector becomes much smaller, less powerful. You should out-focus your competition.


Besides focus, speed is the most important advantage of a small company. Big companies are very reluctant to change. They are built around a successful economic model which is very hard to change. That allows a small company to establish itself in a market place. A little company can out-navigate a big company anytime. Even successful large companies such as Intel take months to react. One day however even the large battleships will have changed course, which requires a very aggressive approach right from the start. Out of necessity decisions therefore have to be made with lightning speed. That is how the small company maintains its competitive edge. If you wait until you have all the data, somebody else will already have beaten you.

A sustainable competitive advantage will not be determined by how you enter the market, but how you prevent others from following you. The idea that initially only you might have had will not be yours very long. As soon as somebody sees it and thinks it is a good idea he might decide to do that too, maybe even better. The competition creates a race
and you have to stay ahead which makes quick execution so important. But to stay ahead you should not only try to run faster than all others, but you should also try to hinder your competition from following you by raising barriers to entry through partnerships, patents, and mindshare for instance. In the early stage of the company already you should spend some time and resources on raising barriers to entry. The seeds you plant now, will hinder the competition to come after you in the future.