Book Summary of Oversubscribed by Daniel Priestley

“Oversubscribed” by Daniel Priestley is a business guide that advocates generating more demand than supply before selling, reducing risk and increasing profits. It is divided into two parts, with the first focusing on building demand and the second on marketing campaigns. The book also includes comparisons with other influential business books and actionable advice on creating remarkable products.

Create More Demand Than You Can Meet

This section focuses on the key lesson of Oversubscribed: To increase profits, attract more customers than you can serve. The benefits of word-of-mouth advertising are also discussed, along with strategies for getting people talking about your business. According to Priestley, this is the most effective way to create demand for your product.

The Core Message: Exploit the Law of Supply and Demand

Oversubscribed aims to increase profits by creating more demand than can be met. Priestley explains that the law of supply and demand affects pricing: high demand allows for high prices and significant profit. Additionally, popular and scarce products continue to generate demand. Therefore, continued advertising is crucial even after demand exceeds supply.

Build Demand Through Word-of-Mouth

Oversubscribed emphasizes the importance of attracting more customers than can be handled, with a significant portion of the book devoted to methods of achieving this goal. Priestley cautions against mass marketing strategies such as commercials and printed ads, which are less effective due to people’s general weariness of being advertised to.

Instead, he advocates for word-of-mouth marketing, which has become more effective than ever thanks to social media. People are more likely to buy products that their friends are using, and social media allows for easy and rapid sharing of information about companies and products.

Here are ways to make people talk about your company:

  1. Be remarkable and unique to stand out.
  2. Undercut competitors’ prices to gain a competitive edge. IKEA is an example.
  3. Offer a more convenient product or service. Streaming services replaced cable TV due to convenience.

Method 2: Advertise Your Company, Not Just Your Products

To build brand loyalty and withstand competition, create a market niche by designing your company’s image. Advertise company values, such as supporting a charity or offering good employee benefits. Additionally, prioritize good customer service and use surveys to improve it.

Drive Interest With Campaigns

To make your business profitable, Priestley advises being a campaign manager, not just a salesperson. Connect with large numbers of people through special events and mailing lists. Priestley’s method for a successful marketing campaign has five phases, which we’ve organized into five steps:

  1. Connect with potential customers through special events and mailing lists.
  2. Build interest with informative and engaging content.
  3. Offer a low-risk way for customers to try your product or service.
  4. Sell your product or service.
  5. Deliver and celebrate your success while continuously innovating.

Step 1: Determine Your Supply

To plan a successful campaign, Priestley recommends determining your business’s capacity in terms of how many customers you can serve and how often. This will vary depending on your business model, such as handmade clothing with limited orders versus a family restaurant serving many customers daily.

Step 2: Prime the Market

To sell successfully, you need to know your target audience and communicate with them clearly. Determine if your ideal customers want and can afford your product, then send regular newsletters to keep them interested. Priestley also suggests offering subscriptions for updates about specific products to maintain the relationship with your customers and gauge their interest.

Step 3: Reach Critical Mass

Priestley’s Oversubscribed emphasizes the importance of having more demand than you can fulfill. To determine the appropriate level of interest before launching your product, Priestley outlines three goals. If you meet at least one, you’re ready to sell:

  1. If there is strong interest, sell when engagement is five times the amount of product, which could be demonstrated through preorders and deposits.
  2. If there is moderate interest, sell when engagement is 10 times the amount of product, which could be shown by event attendance and mailing list signups.
  3. If there is mild interest, sell when engagement is 100 times the amount of product, which could be indicated by clicks, views, and downloads.

Step 4: Make the Sales

After generating enough interest in your product, the next step is to make sales. While this should be a straightforward process, many new companies struggle with it. They feel uneasy about asking for personal information and money, leading to wasted time and failed deals.

However, it’s important to remember that a sales conversation means the customer is already interested in your product, so there’s no need to feel uncomfortable. Simply collect the information and money you need to close the deal confidently.

Step 5: Keep People Talking

After making sales, Priestley suggests exceeding customer expectations to excite them and start the next marketing campaign. This could include free samples or small gifts. You can achieve this by setting customer expectations slightly lower at the start.

However, research suggests that making the most appealing promises you can live up to is the best approach, as exceeding promises doesn’t necessarily make customers happier. Lastly, when starting the next campaign, highlight your business’s success to create demand.

Book Summary of Positioning by Al Ries

Al Ries and Jack Trout’s book, ‘Positioning: The Battle for Your Mind,’ offers marketing tips based on their over 20 years of experience. The book, published in 1981, is the first of many collaborations between the authors, who are experts on marketing strategy. We’ll explore their definition of positioning and techniques, and discuss how it can be applied to career development.

What Is Positioning?

Ries and Trout define “positioning” as shaping customer perceptions of your product in comparison to competitors. A product’s “position” is its unique identity in consumers’ minds. For example, a Ferrari is a luxury sports car, while a Corvette is an iconic sports car that’s more affordable than a Ferrari. These mental associations represent each product’s “position.”

What Does Positioning Look Like?

Positioning is primarily achieved through advertising, which serves as a means of communication according to Ries and Trout. To shape perceptions of your product, you must convey a message that affects how people view it relative to other products.

However, the authors acknowledge that advertising can be intrusive since we are inundated with countless ads from various sources, leading us to tune most of them out.

Guidelines for Positioning-Based Advertising

Ries and Trout offer three recommendations for crafting effective ads that can break through the mental filter and shape customer perception.

  1. Firstly, simplify the message, as our brains can only store and process a limited amount of information.
  2. Secondly, align your message with your customer’s existing understanding of reality, as people are more likely to accept messages that confirm their beliefs.
  3. Lastly, maintain a consistent message over time, as people are resistant to changing their minds, while updating your ads to keep them current.

Preliminary Positioning Strategy

Ries and Trout emphasize the importance of three factors to successfully position your product:

  1. Firstly, comprehending your present position.
  2. Secondly, identifying a feasible and desired position.
  3. Lastly, selecting a name that aligns with the desired position.
  4. Comprehending Your Present Position

Ries and Trout caution that it is crucial to understand how your potential customers perceive your business and how your competitors compare. They also advise investing in research, such as surveys, to gain clarity and make informed decisions.

2- Identifying A Feasible and Desired Position

Ries and Trout advise having a realistic and clear vision of the position you desire for your product. Ideally, positioning as a market leader is recommended as it offers various benefits like brand loyalty, ease of attracting good employees, and higher stock prices. Being a leading product/company helps in creating self-perpetuating success.

Ries and Trout suggest that market leaders have significant advantages and become entrenched, making it difficult for competitors to supplant them with a better product. Instead, they recommend becoming the first to occupy the leading position by finding or creating a niche where you can make a credible claim of market leadership. This often involves sacrificing your product’s general appeal to target a niche where you can be the first to claim leadership.

Find Your Niche

By changing various facets of your product or advertising to stand out, Ries and Trout offer the following strategies for finding an open niche:

  • Product Size: Offer a miniature version if the industry trend is towards large products, or vice versa.
  • Price: Create premium or economy versions of a product to offer profitable niche opportunities.
  • Demographics: Tailor your product and advertising to appeal to an untapped gender or age group.
  • Setting: Target your product for use in a particular place, climate, season, or time of day.
  • Distribution: Consider novel approaches to enhance your customers’ shopping experiences, such creative packaging.
  1. Selecting A Name That Aligns with The Desired Position

Ries and Trout stress the significance of a product’s name for positioning, as it’s what consumers use to mentally position it in the market. The name should be unique, memorable, and representative of the positioning strategy.

Additionally, they advise that a company name should accurately reflect the company’s role and that an outdated or non-representative name can hinder growth.

Consider Your Abbreviations

Ries and Trout caution against using awkward acronyms and recommend creating phonetic ones, such as NASA, for better memorability. However, acronyms should align with your positioning strategy and avoid sounding contradictory to your message, as in the case of using “FAT” for a fitness program.

Additional Naming Pitfalls

Ries and Trout warn that unclear names hinder product positioning. Customers struggle to mentally place them in the market landscape, making it vital to choose a name that reflects the product’s market position. For example, “W Magazine” can be misleading as it covers art and fashion, not finances or women’s issues.

  • Ries and Trout warn that names can become outdated as cultures and businesses evolve. Even if a product or company remains the same, changes in language or culture can make a name obsolete and less effective in resonating with prospective customers.
  • Ries and Trout suggest changing technical product names developed by engineers before bringing them to the market, as such names are often meaningless to outsiders.
  • Ries and Trout suggest that having a name too similar to a competitor’s name can make it challenging to establish your own distinct position in the market.

Positioning Strategy

Once you’ve assessed your current position, envisioned a realistic goal, and confirmed your name aligns with it, how can you solidify your position as the market leader? Ries and Trout offer various strategies depending on whether you’re already the leader or striving to become one.

Strategy for an Established Market Leader

To maintain market leadership, reinforcing your position may suffice. But, Ries and Trout suggest that advertising your product as the best won’t persuade customers. They recommend promoting yourself as the original and genuine article. As leaders usually occupy their positions first, this claim is credible and suggests competing products are imitations, giving people a reason to buy from you.

Strategy for an Aspiring Market Leader

If you’ve found a valuable, unexplored niche, you can become a market leader by creating a product that meets demand, choosing a fitting name, and launching a successful ad campaign, according to Ries and Trout. However, they emphasize the importance of meeting customer expectations and repositioning the competition in this scenario.

Appeal to Expectations

To effectively communicate a message, it’s best to align with people’s expectations. Ries and Trout suggest that if you introduce a new product, it’s essential to compare it to something familiar to consumers. They use the example of marketing early cars as “horseless carriages.”

Reposition the Competition

To gain a market advantage, Ries and Trout advise discrediting competitors by repositioning their product. Merely claiming superiority is ineffective. Instead, expose a deficiency in the current leading product to create an opening for a new niche leader. Ries and Trout note that bad news about a competitor is more effective than good news about your product. For example, a pharmaceutical company can highlight side effects of gender-neutral vaccines on women’s health to promote a new flu vaccine.

Strategy for an Established Leader Entering a New Market

If you’re a market leader with one product and want to launch a new one in a different sector, Ries and Trout advise creating a new brand for the new product. This avoids the pitfalls of line extensions, which we’ll discuss next.

The Pitfalls of Line Extensions

“Line extension” is a term used by Ries and Trout to describe adding new products to an existing line under the same name. Products are distinguished with descriptions or other qualifiers. While line extensions provide instant brand recognition and save on marketing costs, Ries and Trout advise against them due to brand dilution and internal competition.

Brand Dilution

Ries and Trout argue that line extensions weaken a brand’s position by diluting its collective essence. A brand associated with diverse products and market positions becomes harder for customers to identify, and thus weaker. For example, if Ferrari started selling economical cars, it would dilute its high-end sports car brand and lose its meaning.

Professional Positioning for Career Success

Ries and Trout believe that the principles of positioning can be applied to advance one’s career. The strategy they recommend includes understanding your current position, identifying your desired position, selecting a suitable name, and charting a course to your desired position.

Understanding your current position involves being aware of how others perceive your strengths and weaknesses. To identify your desired position, you need to realistically determine what professional positioning you want, and this might involve finding an open niche.

Your name is also an important element of how people perceive you, and Ries and Trout recommend avoiding initials and using a name that supports your desired positioning.

Charting a course involves finding a good fit between your values and goals and your company’s vision and goals. In applying for new positions, you should emphasize how your strengths match the company’s strengths.

Ries and Trout stress the need for persistence in positioning as it is a long-term endeavor.

Book Summary of Purple Cow by Seth Godin

Seth Godin and his family were thrilled to see many cows during their vacation in France. But soon, the excitement faded away as all the cows looked the same. They realized that only a purple cow would be remarkable and exciting.

This principle applies to product development and marketing. Creating an ordinary product like all the others won’t grab attention. You need a remarkable and exciting product, a Purple Cow, to stand out.

Mass Marketing Doesn’t Work Anymore

Traditional mass marketing techniques like TV commercials and newspaper ads are no longer as effective as they used to be because people today have less money, time, and attention to spare. Trying to target as many people as possible is not the way to go, as most of them won’t even listen to you.

To get attention for your product, you need to target the right people who fall into a bell curve: the innovators and early adopters, who will then market your product to the majority. Your Purple Cow must be remarkable enough to attract the innovators and flexible enough to appeal to the majority, once they hear about it from a source they trust.

Find Your Cow by Taking Risks

To find your Purple Cow, you need to look for extremes in your products, advertisements, image, and pricing. Identify the absolute limits of possibility, even if you don’t plan to go that far. Playing it safe is risky in today’s world of brown cows, and copying someone else’s success won’t make your product remarkable.

You need to stand out and catch the attention of innovators and early adopters who will spread the word. The Four Seasons and Motel 6 are examples of exceptional brands that succeeded by being opposite extremes in the hotel industry.

What Remarkable Doesn’t Mean

Common misconceptions about remarkability include mistaking “good” for remarkable, thinking that being ridiculous is the same as being remarkable, and relying on cheap pricing to make a product remarkable.

Good products with broad appeal are often boring and more likely to fail. Being ridiculous may attract attention, but not the right kind. Similarly, cheap pricing is not enough to make a product remarkable and can lead to a price war with competitors.

What’s Next?

Creating a single remarkable product isn’t enough to sustain a business forever. Milk it for all it’s worth by passing it on to another team and extracting maximum profits.

Then, invest the profits into developing your next big thing. Keep the Purple Cow cycle going to stay at the forefront of your industry.

But don’t churn out mediocre products just for the sake of it. Wait until you have your next remarkable idea. Remember, playing it safe is the riskiest move in today’s age of the Purple Cow.

Book Summary of The Cold Start Problem By Andrew Chen

In “The Cold Start Dilemma,” Andrew Chen provides a step-by-step guide for creating a successful tech firm from scratch while utilizing the network effect. Chen explains five stages of expanding a tech firm, drawing on interviews with over 100 successful entrepreneurs.

“The Cold Start Problem” by Andrew Chen presents a five-stage plan for building a thriving tech startup through the network effect. The stages involve creating and replicating a subnetwork, accelerating growth, overcoming negative growth, and fending off competition. Chen also offers guidance on marketing, user incentives, and profitability.

 

Background: What Is a Network-Based Business? 

A network-based business is a product or service that gains value as more people use it, and it involves interactions between users. The more users a network-based product or service has, the more valuable it is to each individual user. Examples of network-based tech products include social media platforms, online marketplaces, and multiplayer video games.

These businesses take advantage of the network effect to expand quickly and profit from the user data they collect, an endlessly valuable resource.

Step #1: Create Your First Subnetwork

To create a business at a massive scale, the first step is to create a functional and small network, called a subnetwork, that is as small as possible. The size of the network required to meet the threshold for functionality will differ for different types of businesses.

Chen advises starting with a productive subnetwork and progressively growing it over time. Compared to attempting to establish a huge, dominant network all at once, this is far simpler. You may finally develop a huge and successful network by building innumerable separate but connected subnetworks.

Counterpoint: Prioritize Speed Over Stability 

The writers of Blitzscaling dispute with Chen’s advice to give stability priority in the early stages of a business, contending that a company might achieve quick development by forgoing stability, becoming the first major player in a new industry. Being the early market leader has benefits, such as luring top people and investors, which makes it challenging for rival companies to compete.

Here are a few tips for how to get your first subnetwork up and running.

Tip #1: Attract a Group of Users All at Once

Chen suggests that you should persuade a number of users to join a subnetwork at once in order to fast establish network stability. The “Tipping Point” is the quantity of users needed, depending on the product, to establish a working subnetwork. Users will frequently use your product and could recommend it to others after you reach subnetwork stability, providing you a steady or expanding user base.

But, if a subnetwork lacks sufficient users to become stable, its sparse user base will leave the broken system, causing the subnetwork to disintegrate. A specific subnetwork’s size isn’t the sole criteria in determining its viability because certain people’s influence, such as that of “Connectors,” might have a disproportionately large impact.

Tip #2: Target a Niche Group (at First)

According to Chen, a product should be made for a particular user group, such as an online community or event attendees, to ensure that it meets their needs and gives consumers someone with whom to communicate in order to maintain subnetwork stability. By doing this, a reliable subnetwork may be created, making future network expansion simpler.

The secret to creating a successful business is to target a certain market first before broadening it later. No network is too tiny, according to Chen, as long as it is reliable, although Moore suggests concentrating on markets that are lucrative enough to support growth. Network effects will occur after you draw in enough subnetworks of specialized users, making your network valuable enough to draw in a larger audience.

Moore advises creating a product for a niche market since a smaller market is simpler to control and profitable. This is due to the fact that specialized markets are closely knit together, which makes it simpler for a solid product to develop momentum and become well-known.

In contrast, competitive mainstream marketplaces make it challenging for startups to compete with well-established networks that cater to a broad audience. Startups may entice whole subnetworks away from rivals and compete with market leaders by focusing on an underserved segment and developing a product that uniquely caters to that group.

Geoffrey Moore suggests that targeting a niche audience can help startups gain a foothold in a market and achieve profitability. Niche markets facilitate better communication among users, allowing word-of-mouth promotion. Additionally, startups can disrupt larger networks by developing products specifically tailored to underserved niche markets.

Big corporations often ignore niche markets because they may not generate enough profit to justify the investment needed to meet their specific requirements. In contrast, startups can use this to their advantage by focusing on niche markets. Clayton Christensen’s book, The Innovator’s Dilemma, delves into the reasons why bigger companies tend to avoid competing in these markets.

Tip #3: Keep the Product Simple

Chen advises that to create a successful and expanding subnetwork, startups should focus on designing a product that performs one function perfectly and is easy to understand and use. By keeping the product simple, it becomes easier to attract and retain users, expand the network, and increase its value. Users are more likely to share a product that is simple to explain and understand.

Donald Miller advises that creating a customer-focused story can be the basis of all your brand messaging for a simple product, helping your audience understand what it is, how to use it, and how to explain it to others. The story should identify the customer’s needs, describe how your product can help them overcome a problem, and empower them to achieve their goals. With a simplified marketing message, customers can be compelled to take action and engage with your product.

A story-based marketing approach communicates essential product information, leading to growth. By focusing on what customers want and how the product solves their problem, the messaging catches their attention and encourages them to engage. This approach promotes network growth as customers internalize and share the brand’s story, filtering out irrelevant information and focusing on what’s necessary to improve their lives.

Tip #4: Cater to Your Difficult-to-Attract Users

Successful products and services that serve two-sided markets like online marketplaces, rideshare apps, and social networks require the ability to attract and serve both sides equally. However, one side, known as the “Hard Side,” can be more challenging to attract, causing network instability.

To address this, it’s crucial to design your product with a deep understanding of the Hard Side’s needs, behavior, and incentives. Providing value to both sides and constantly improving the user experience through feedback loops is key to overcoming this challenge, according to Chen.

Appealing to hard-to-reach users is essential for network stability, but it’s only one bottleneck that could limit growth. To maintain steady growth, it’s crucial to identify and tackle each bottleneck one at a time. If attracting hard-to-reach users isn’t enough to drive growth, then it’s time to identify and address new bottlenecks.

Step #2: Repeatedly Replicate That Subnetwork

To achieve exponential growth, it’s important to repeat the process of building subnetworks. As you establish more subnetworks, the next one becomes easier to build, leading to the Growth Explosion. During this phase, cost-effective strategies aren’t necessary, and unprofitable ones can help you dominate the market quickly.

Chen advises prioritizing profits after achieving the Growth Explosion stage, but several tech giants with millions of users remain unprofitable, raising concerns about a potential tech bubble. Despite this, investors are still pouring billions into startups, and the market continues to value growth over profits.

Chen recommends developing a replicable process for launching new subnetworks. The following sections outline various strategies that can be utilized to expand the product’s reach to new subnetworks, which can be phased out after achieving growth. A combination of these strategies can be employed to determine the most effective approach.

Strategy #1: Pay Users to Use Your Product

Chen advises having a replicable process for launching new subnetworks, with various strategies to spread the product to new users. Paying users to complete tasks or offering a free product with premium features can be effective but may require outside investment and sacrificing control.

Strategy #2: Artificially Inflate Your Network

Chen suggests a strategy to boost early growth, which involves temporarily increasing the network’s size by having employees participate in it. For example, hosting gaming events to create a more active network for a board game app. However, it’s important to avoid misrepresenting the network’s size to investors, which can damage trust and potentially lead to fraud accusations.

Strategy #3: Only Let Users Join by Invitation

Chen suggests three strategies for launching new sub-networks: paying or offering the product for free to attract users, temporarily participating in the network to inflate its value, and limiting users to those with an invitation from an existing user. These strategies aim to create lasting and stable sub-networks, increasing the likelihood of long-term success.

Step #3: Streamline and Accelerate Growth

Chen suggests three strategies for launching new subnetworks: paying users, participating in the network yourself, and making the product invite-only. The Growth Explosion stage will be reached after successfully launching enough subnetworks, where the network effect will accelerate growth to challenge market leaders. Chen advises focusing on refining the product to amplify the network effect at this stage. However, rapid expansion can distract from providing the best possible product to existing customers. The network effect drives growth by attracting new users, retaining existing users, and profiting more from them.

Goal #1: Optimize Network Growth

Chen suggests that a bigger user base facilitates word-of-mouth advertising and that companies should enhance their product by adding features that organically expand the network, such as enabling users to share content beyond the app. To encourage users to share the product, companies can make it captivating or exclusive, offering social currency.

Goal #2: Optimize Network Preservation

Chen says that having a larger user base allows for more data collection, which can be used to improve the product and retain users. By identifying the most engaged users and analyzing their behavior, businesses can make targeted changes to keep them interested. For example, a board game app could add a “discover new games” feature to encourage users to play more games and increase retention.

A Low-Budget Alternative: Conversations With Customers

To improve your product without analyzing data, you can gather valuable information by speaking directly with customers about their past behavior rather than opinions or predictions. In his book, The Mom Test, Rob Fitzpatrick recommends asking objective questions, such as when customers last used your app and which social network they used before yours, to gain insights that can inform product development and make it more engaging.

Goal #3: Optimize Network Monetization

Chen states that more users can benefit your product in three ways: attracting more users, providing more data for analysis, and increasing revenue. Offering premium features that become more valuable as the network grows can incentivize users to pay for them, optimizing network monetization.

Don’t Stress Out About Raising Your Prices

Chris Guillebeau suggests that as your startup grows, raising prices is reasonable, but many small business owners fear losing customers. However, customers expect occasional price increases and it can boost profits without significant customer loss. Guillebeau also advises offering premium and super-premium tiers to increase revenue and make standard prices more attractive.

Step #4: Push Through Negative Effects of Growth

To achieve rapid user base growth through the network effect, Mike Michalowicz suggests designing your business to function without your direct input. Extreme growth can create new problems that harm product quality and hinder further growth. Three unique problems of large networks can stall growth and must be addressed.

Problem #1: Market Saturation

Chen highlights the value of a large user base for product monetization, but excessive growth can cause problems and hamper quality. To sustain growth, Chen advises innovating beyond the original idea and targeting new users or introducing paid features. This opens up new revenue streams and ensures continued growth even after market saturation.

Market Saturation Shouldn’t Be Your First Assumption

How Brands Grow argues that entrepreneurs may underestimate their market potential and set low sales goals, hindering customer acquisition. Therefore, it’s crucial to avoid risky decisions until market saturation is confirmed. Instead, entrepreneurs should target all potential users and set aggressive growth targets until they become market leaders.

If growth stalls, entrepreneurs should identify obstacles deterring specific demographics from using the product rather than assuming market saturation. For instance, a language-learning app should investigate factors hindering user growth in certain demographics.

Problem #2: Community Dilution

As a network grows, community dilution can occur due to an influx of malicious users or mainstream adoption. To prevent this, subnetworks can be created with tight moderation tools. Avoid heavy-handed moderation and censorship by applying transparent rules consistently across the network.

Shifting User Motivations Can Dilute Your Community

Community dilution can occur when the network becomes mainstream or malicious users join. To regulate this, subnetworks can be created with tight moderation tools. However, if users’ motivations change, such as prioritizing audience building over personal connections, it may cause an irreversible cultural shift in the network.

Problem #3: Too Much Content

Chen recommends creating subnetworks and automated moderation tools to prevent community dilution and information overload. Precise discovery algorithms can also aid in content search. However, such algorithms may have adverse effects, such as promoting disinformation and political polarization.

Step #5: Ward Off Challengers

Chen states that becoming a market leader and earning profits through the network effect requires monitoring competitors and adjusting user acquisition strategies. Data analysis is crucial to track user behavior and the impact of these strategies. However, success can lead to negative mindset effects, such as entitlement and paranoia, so keeping ego in check is important.

Avoid Making “Beating Competitors” Your Primary Goal

Chen highlights the need to monitor and compete with rivals as a dominant market leader. However, Sinek suggests that focusing on a noble mission is more important than obsessing over competition, which can demotivate employees. Sinek advises learning from competitors and improving your product, rather than solely stealing their users. He argues that prioritizing competition can hinder learning from competitors and ignoring their strengths.