2 builders who never spoke to each other

Assume your head start is perishable

A lead converts into a barrier only if you keep extending it fast enough that catching up stops being worth attempting. Left alone it turns into a liability instead: features nobody wanted, unprofitable legacy customers, architecture you cannot change and a reputation formed by an older version of the product.

The method

1. 01

   A head start only turns into an advantage if you keep expanding and improving fast enough that the lead itself becomes the barrier.

2. 02

   Treat an early lead as a liability as much as an asset: you carry features nobody wanted, unprofitable grandfathered customers, architecture you cannot change and a reputation that lags the product.

3. 03

   Do not talk yourself into believing you already have an advantage. Brand strength, data scale effects and operational excellence are the three things companies most often overrate in themselves.

What it returned

• McDonalds and Ford held their leads by continually cutting cost and adding wanted features; AWS kept lowering prices while broadening the service and at least four multi-billion-dollar rivals still have not caught it. Early MP3 makers did neither, leaving Apple room to win on design.

Sources

• When being “first” is not a competitive advantageJason Cohen · longform.asmartbear.com · When being “first” is not a competitive advantage · 2011-12-19
• Business strategy with Hamilton Helmer (author of 7 Powers)Hamilton Helmer · lennysnewsletter.com · 2024-05-05