being the best to whom?

Being the best has its advantages. Jack Welch wanted to be number one or two in every market. I remember the days when similar statements were made at Siemens.

Sure, there are advantages to being number one or two in a market. You belong to the choice by default. When in doubt, customers resort to it if they want to be on the safe side or don't want to spend time on further decisions.

But what does that mean for the innovator?

Being number one is hardly present in the startup mindset. For example, a look at the Business Model Canvas shows nine boxes that need to be in alignment with each other. Others talk about an unfair advantage or a factor of 10, but rarely is there an aspiration to be number one.

Clayton Christensen's ideas on disruption assume that new providers create solutions with simple solutions for previous non-customers. They create their own market, so to speak, and are number one there.

Presumably, innovators always create their own market. In doing so, they do not enter into direct competition with existing providers, but focus on non-customers and their needs. Customer segments that are uninteresting to existing providers.

But this means that innovators have to establish communication and access to these customer segments themselves. That can be the real challenge. Without this access, there is little point in perfecting one's service and products so to be the best in the chosen market.


2023-08-10