I have a copy of Benioffs first ever V2MoM from 1999 - gold dust - I should send you a copy. Thinks about Values completely differently to any other Strategy Framework ✅💲
Thanks for this - seems plausible that in the not too distant future the application layer is entirely defined by business users through prompts and these sorts of applications are reduced to data stores.
I think this is a decent framework for who wins early on in markets:
1. First to market - Pick the lowest hanging fruit, get customer feedback, start compounding.
2. Verticalization & Domain Expertise: The better a company understands the unique problems of an industry, the better they can solve those problems.
3. Distribution Networks: Companies with existing distribution networks can release products and upsell them to existing customers rapidly (also adding to the speed-to-market point).
4. Data Advantages: Proprietary data leads to proprietary insights, whether accessed through partnerships, integrations, or experiments.
5. The X factor of finding ways to solve customers problems: At an event last year, I heard David Senra tell a story about Fastenal, who sells an entirely commoditized product: quite literally nuts and bolts. Somehow, they had 4x the margins as competitors and were still gaining market share. They did that by having the best customer service on the planet. Their founders were obsessed with customer experience; they went out of their way to show customers that, and they dominated a market by doing it.
Depending on these variables, the market starts to “select winners” and those winners start their Power Law compounding. The rate of competitor entry slows, until eventually hitting its peak.
I have a copy of Benioffs first ever V2MoM from 1999 - gold dust - I should send you a copy. Thinks about Values completely differently to any other Strategy Framework ✅💲
Would love to see it!
I'll DM you 🌞
Thanks for this - seems plausible that in the not too distant future the application layer is entirely defined by business users through prompts and these sorts of applications are reduced to data stores.
Seems plausible.
Given how many companies are converging in each other's market- who comes out on top? Would love to get your thoughts there
I think this is a decent framework for who wins early on in markets:
1. First to market - Pick the lowest hanging fruit, get customer feedback, start compounding.
2. Verticalization & Domain Expertise: The better a company understands the unique problems of an industry, the better they can solve those problems.
3. Distribution Networks: Companies with existing distribution networks can release products and upsell them to existing customers rapidly (also adding to the speed-to-market point).
4. Data Advantages: Proprietary data leads to proprietary insights, whether accessed through partnerships, integrations, or experiments.
5. The X factor of finding ways to solve customers problems: At an event last year, I heard David Senra tell a story about Fastenal, who sells an entirely commoditized product: quite literally nuts and bolts. Somehow, they had 4x the margins as competitors and were still gaining market share. They did that by having the best customer service on the planet. Their founders were obsessed with customer experience; they went out of their way to show customers that, and they dominated a market by doing it.
Depending on these variables, the market starts to “select winners” and those winners start their Power Law compounding. The rate of competitor entry slows, until eventually hitting its peak.
Excellent newsletter !!!
Thanks William!