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A Summary of

3 Reasons Better Products Don't Always Win

by
Sachin Rekhi
Sachin Rekhi
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A product that is better than the established players in market doesn't always win the market. Three reasons why:

The Cost of Switching

  • Learning how to use a new product or moving your data over takes time people don't necessarily have
  • Users have very little incentive to try a new solution to a problem they think they have already solved
  • Succeed by building a product 10x better than the existing solution

Distribution

  • Even if your product is 10x better, you can't win unless your distribution strategy is cost-effective and scalable
  • Succeed by crafting your distribution strategy early on alongside your product strategy

Network Effects

  • Incumbents benefit the most from network efforts, making it difficult for new products to penetrate these markets
  • Succeed by creating single player value as well as ramping distribution early to build your own network effects
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