Saturday, October 20, 2012

Double disruption?

I am trying to find a way to double disrupt an industry. What does that mean?
Every companies are trying to create barrier of entries. Here are common way to create barriers:
  • Just be faster 
  • IP protections
  • Be first, first in a channel with exclusivity if possible
  • Pricing (cheaper)
  • Domain knowledge 
  • Expertise
  • Network
  • ...

Competing in some tech industries these days is insanely hard do to due to way lower level of barrier of entry. In many cases, the only barriers is having a laptop, dev expertise and spare time. Network and channel is the biggest barrier of entry if you are competing in that domain which explain why incubators are so powerful tool. 

Let's take an example: you are trying to disrupt an industry were most competitors are VC founded, what can you do?

The most powerful strategy is to use there advantages against them. In this example by using an alternative founding strategy that will create a barrier of entry on the monetization (can't compete pricing in the long run).

If you want to succeed, you have to play the game. Its the jungle out there, harm yourself and use the chest strategy, try to move first, get momentum (users) and create barriers of entries along the way. 

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