Business : Competition

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2014 12 xx competitors minimum viable product versus my minimal viable segment t1.png

On one hand, being the first on the market has the burden that client candidates only want the things that they can understand and they want them in greater quantity and cheaper. On the other hand, Google was not the first on the market, Yahoo was before the Google and had all the features that the Google had. Microsoft was neither the first, nor the most innovative, but the genius of the Bill Gates was distribution channel development. Bill Gates sold licenses in bulk to mega-corporations and flooded the market with that. History demonstrates that it is not necessary to be the first on the market to win and that good marketing allows to sell crap, as long as the crap can be extended by the end users..

Sales is a numbers' game: to make one probabilistic sale to a client-candidate that has N choices to choose from, offers have to be made to at least N such client-candidates.

How to Outrun Competitors

  • Production of physical goods in proper volume takes time. If the product is copyable without significant development time, then the innovative party should flood the market with their new models faster than the copy-cats are able to physically produce the clones in a relevant volume. By the time the copy-cats come to market with the clones, the innovative party should have a new batch of brand new models available in quantity that, again, floods the market.

  • For software as a service(SaaS) and software in general, the strategy is the same: flood the market with one's own brand before the competition can react. That way the software can even be open source and the competitors are not able to use it for selling their SaaS to that market.

  • Be more capable than competitors. Given the same tools, an ape can not do the job with the same quality as Leonardo da Vinci can. In that situation the availability of tools, for example, open source software, is not sufficient for competitors to succeed. (That does not stop corporate management, specially the career managers, from believing, that the job quality of cheap and mistreated apes has any shortcomings.)

  • Work on a project that the competitor candidates are not interested to compete with. (There are plenty of such projects and by the time the project launches, has success, the competitor candidates' knowledge substantially lags behind the knowledge of the first party on the market.)

  • Have better localization than the competitors have. (Local entrepreneurs have more knowledge of the local culture, peculiarities, facts than any global player, who just recently entered the town.)

  • Have smaller costs than the competitors have. In the case of software development some market segments are accessible only to freelancers, because the bigger corporations have multiple layers of managers, expensive offices and company profits to pay for in addition to the developer(s), who does/do the actual work and the clients at those nice markets just can not afford all of those layers of management and the rent of the fancy sky-scraper offices.

  • If You are really nasty, then pay more to corrupt officials than Your competitors do and/or pay to a greater number of corrupt officials than Your competitors do and/or pay to corrupt officials that have a higher position in the hierarchy than the ones that the competitors have paid to. The bribing can be done in a juridically correct manner, by buying some "consultancy" services or other goods/services from some close associate of the corrupt official or by establishing some shadow company that has a lot on the bank account and that is run by some lawyer for the benefit of the close associate of the corrupt official or the corrupt official might be offered a chance to continue "working" at some highly paid, irrelevant, "position" at some board of some mega-corporation. Hiring hit-men will probably not work out so well, specially if the number of personnel that Your competitor can afford to lose is greater than the number of personnel that You can afford to lose.

  • If You are a layer or a CEO of a minidictatorship, then begging the super-mafia to destroy Your competition (by using patents, "copyrights", "registered useful model", etc.) is a viable option, because freelancers and small firm personnel must spend the majority of their time on earning a living, but big corporations can afford lawyer(s) to work full time at the competition extinction project or money extortion project.

  • Have the most capable army for conducting extortion. Mafias, including super-mafias, can guarantee their monopoly with brute violence.