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Create Something New Dont Compete
Product / Advice
Head-to-head competition is a losing game. Find a category you can own.
The Idea
Peter Thiel: competition is for losers. When you fight over a defined market, margins collapse. When you create a new category, you set the rules.
Why It Matters
- Differentiated products set their own prices.
- Competing on the same axis as incumbents means playing their game.
- New categories are defensible because you define them.
How to Apply
- Look for combinations no one has made yet.
- Ask: what would this product look like if X didn't exist?
- Describe what you do in a sentence no competitor could use.
- Own a word in the user's head.
The Trap
Confusing "new category" with "slightly different." A new category must change how people think about the problem, not just how they solve it.
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