Thot: Own The Edge
Don't try to compete with the incumbents. Look for the edge cases they ignore.
Many founders think they need to disrupt existing markets by directly competing with a “better solution”, but this strategy often fails. Incumbents have more resources, established distribution networks, and the ability to outmatch challengers with pricing, market access barriers, and regulatory influence, even if your solution is technically better.
Managing uncertainty requires a different approach: identify opportunities that incumbents miss or segments they consider too small to matter. Focus on underserved, overlooked, or emerging categories that allow you to grow without triggering larger competitors.
Back in 2014, Francis Davidson, an undergrad at McGill University, set out to start a new venture renting out empty student apartments over the summer. He soon spotted a chance to create a brand offering “reliable, beautifully designed apartments in the heart of the world’s top cities.” This concept, Sonder, kicked off a new category of travel residences that work alongside, rather than against, established hotel chains.
Author John Hagel describes this approach as “entrepreneurship at the edge”. Edges are vital sources of business innovation where traditional products and practices no longer meet emerging needs.
To exploit the Edge, startups must not only leverage a technological advantage, but more importantly, they need to innovate with their business model, or how they create, deliver, and capture value.
Edge entrepreneurs enjoy a unique advantage: agility. The best way to achieve sustainable growth is by discovering and creating your own space, rather than trying to compete in markets that are already well-established.
Remember, incumbents usually have more resources, momentum, and options than you do. Your goal is to find a clearly defined, underserved Edge niche where you can become the preferred choice for your clients, offering them something they genuinely need and that no one else can supply.
Take a moment to review your current positioning. What are the emerging Edges in your market? Where can you adjust to be closer to customer segments or use cases that incumbents are overlooking because they seem too small or too niche? This could be your path to sustainable growth.
Own the Edge. That's where the future gets made.
Davender’s passion is to guide innovative entrepreneurs in developing the clarity, commitment, confidence and courage to enter, engage and lead their markets in an unpredictable world by thinking strategically and acting tactically. Find out more at https://www.davender.com and https://linkedin.com/in/coachdavender .