Smart Non-Money
Spending money to compete toe-to-toe is dumb. But this hasn’t stopped start-ups from doing just that. Most start-ups are about as broke as college kids (and from the looks of their management team photos, may well be staffed with the same). They do need to spend money on marketing, but competing is foolish. For every face-off, someone loses face. Slugging it out with gorillas is fast suicide and shin-kicking many small competitors is the slow form. In every market, you can outmaneuver competitors, even gorillas. By understanding the position of each competitor or how they approach buyers, you can compete without competing, which is more cost effective and more effective in general. SuSE Linux remains my worn-out example because it worked against the sitting gorilla. Back when Linux was only starting to be seriously considered for mission-critical IT infrastructure, the U.S. market was owned by Red Hat and littered with … Continue reading →