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I& #39;ve been massively nerding out on competitive strategy these past years.
There& #39;s a lot that goes on there, and a lot of theory/background one should know to have a full picture.
Here& #39;s a great, simplified way to think about competitive strategy.
A
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There& #39;s a lot that goes on there, and a lot of theory/background one should know to have a full picture.
Here& #39;s a great, simplified way to think about competitive strategy.
A
Every SaaS tool, every agency fits into a "job to be done" box.
E.g. Hotjar goes into the "heatmaps for SMBs" JTBD box and CXL is "digital marketing training".
Depending on the person, we only keep ~3-5 options per box (typically referred to as the & #39;consideration set& #39;).
E.g. Hotjar goes into the "heatmaps for SMBs" JTBD box and CXL is "digital marketing training".
Depending on the person, we only keep ~3-5 options per box (typically referred to as the & #39;consideration set& #39;).
Once a tool gets established as #1 in our JTBD box, that becomes a tool folks recommend first (highest mental availability).
And here& #39;s the kicker: which companies are in that box has nothing to do with personal experience. It *can* be, but mostly it& #39;s reputation-based.
And here& #39;s the kicker: which companies are in that box has nothing to do with personal experience. It *can* be, but mostly it& #39;s reputation-based.
That& #39;s why when you see people ask for recommendations for an A/B testing tool, small-time freelancers who work with SMB clients recommend Optimizely.
They& #39;ve never used it, have no clue what it costs, no idea about statistics, but claim with confidence that it& #39;s what you need.
They& #39;ve never used it, have no clue what it costs, no idea about statistics, but claim with confidence that it& #39;s what you need.
The stability of brand positions in nearly all markets is simply astonishing. There is just too much customer and market momentum. Whoever manages to become a category king, stays there for a long time.
A lot of this has to do with becoming the #1 tool for a JTBD in our mind.
A lot of this has to do with becoming the #1 tool for a JTBD in our mind.
Being a well-known brand - #1 in your category - gives your advertising and marketing 18x effectiveness boost - just because people know you.
The Law of Double Jeopardy also kicks in (see: Byron Sharp).
It further cements your place at the top. https://twitter.com/peeplaja/status/1376858743544152065">https://twitter.com/peeplaja/...
The Law of Double Jeopardy also kicks in (see: Byron Sharp).
It further cements your place at the top. https://twitter.com/peeplaja/status/1376858743544152065">https://twitter.com/peeplaja/...
This is the very reason why category creation is such an attractive play.
Once you& #39;re the king of the category, you& #39;ll get all those amazing benefits.
Creating categories and blue oceans is no easy feat.
Most are naive about the amount of millions it takes to pull it off.
Once you& #39;re the king of the category, you& #39;ll get all those amazing benefits.
Creating categories and blue oceans is no easy feat.
Most are naive about the amount of millions it takes to pull it off.
As a marketer, your goal is to get inside that very limited consideration set.
It& #39;s very hard.
Invest in building a media machine (brand, content), and having an excess share of voice. https://twitter.com/peeplaja/status/1337880327935700997">https://twitter.com/peeplaja/...
It& #39;s very hard.
Invest in building a media machine (brand, content), and having an excess share of voice. https://twitter.com/peeplaja/status/1337880327935700997">https://twitter.com/peeplaja/...
You can literally buy your way into the consideration sets.
If you look at some of the fastest-growing B2B companies of the last 5 years, operating in saturated markets - e.g. Monday - it spent a ginormous amount of money on advertising, and now firmly sits in people& #39;s top 5.
If you look at some of the fastest-growing B2B companies of the last 5 years, operating in saturated markets - e.g. Monday - it spent a ginormous amount of money on advertising, and now firmly sits in people& #39;s top 5.
If your company is not strongly differentiated against the category leader (or top 3), you have no chance to break into someone& #39;s JTBD box.
That& #39;s why one of the most important moves for challenger brands is to take a fundamentally differentiated position in the market.
That& #39;s why one of the most important moves for challenger brands is to take a fundamentally differentiated position in the market.
You can carve out new openings by creating new JBTD boxes by focusing on a particular segment of the market.
Klavyio is now #1 "email for ecommerce" box and Convertkit sits at the top for "email for creators".
Once you rule a smaller segment, you can think about expanding out.
Klavyio is now #1 "email for ecommerce" box and Convertkit sits at the top for "email for creators".
Once you rule a smaller segment, you can think about expanding out.
Innovation is a way to rapidly gain market share and grow quickly in saturated markets.
It makes you stand out and get into people& #39;s consideration sets.
Tesla took the #1 position for JTBD for electric cars by being first a category of one, and then ruling with innovation.
It makes you stand out and get into people& #39;s consideration sets.
Tesla took the #1 position for JTBD for electric cars by being first a category of one, and then ruling with innovation.
Every carmaker is coming after them though, so their innovation advantage will eventually cease to exist. All innovations are transient advantages.
While they& #39;re ahead, they need to invest in moats. Not just Tesla, but everyone at the top.
Read "7 Powers" by H. W. Helmer.
While they& #39;re ahead, they need to invest in moats. Not just Tesla, but everyone at the top.
Read "7 Powers" by H. W. Helmer.
Thanks for reading. If you& #39;re interested in competitive strategy, give me a follow and subscribe to my email list at http://peeplaja.com"> http://peeplaja.com .
New podcast on the same topic launching soon, will announce in the email list.
New podcast on the same topic launching soon, will announce in the email list.
