Learnings about competition

More competitors is less competition.. but how so?

Old architecture and new architecture divided diagonally by a line.

This weekend I was watching one of the "Damien Talks Money" videos.

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I wouldn't say I like watching most of the "Finfluencer videos, but this one caught my attention.

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He shows some fascinating studies on how "competition" actually works.

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In practice, I see many corporate ventures comparing themselves to the rest of the world. But why is it better not to focus on them?

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Competition is fun.

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Yes, of course, competition is fun.

The competition will make you stronger, quicker, better etc.

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But there is a problem...

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Most of the matches you enjoy watching or being part of are mainly focused on a few competitors. The more competitors you can see, the less competition there will be.

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?!

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Yes.

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The more competitors you can see, the less motivated and effective you will become in competing with them. It is called the "N-effect: More Competitors, Less Competition".

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It's better to focus on a few competitors.

It's less overwhelming and helps you to focus on the things that matter most.

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What does this have to do with innovation?

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Pick one, maybe two, competitors you want to beat. Focus on how you can provide more value to the market compared to them.

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Pick these competitors carefully. Not everyone or anything would be your competitor. Pick the ones that are up to your standards.

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And most important of all, stop focusing on all the other "potential competitors".

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The rest will come.

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Don't create unicorns,

Let's breed blue whales.

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