Hustle is innovative and why others may copy there is only one Leader. While others may follow the Originator they can never be the Leader. Hustle either builds upon or starts a new it rarely if ever follows..
When you have a cold and have to sneeze you reach for a Kleenex. Kleenex was the first to create facial tissues but they so dominate the market you say the company name instead of facial tissue. To this day people still call clear tape Scotch Tape. In fact any additions to clear tape is still described by most people as Scotch tape with a new dispenser, or it’s like scotch tape but beige. No matter what is created after the leader it always is compared to the original.
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If you can’t dominate the Hustle you’re in then make money for now until you find something you can dominate. Now this doesn’t mean you have to come up with something new (if you did it would probably be the Grand Hustle) instead you can spot something that isn’t being done where you stay and be the first to it. In Under-served City USA the first person to bring a Little Caesars Pizzeria is usually dominating the market. Be the first to bring any services to a under served area and you will dominate. The Leader is just the first one there, everyone else noticed the opportunity from watching the Leader make money doing it.
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Bottom Line: Dont’ Follow the Leader because he probably has the area on lock but you can take the same idea and use it in another area.
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See you Monday with the “Who Are the People” Podcast
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So take game from here and apply it there? Once it’s there you are already a follower huh?
Like there’s more than one Kleenex and more than one Scotch tape you can jump in but you have to realize you’ll be looked on as generic. It could be the same quality but to the public you are a cheaper brand and you’ll never really get to charge the same price for the same product.
Case in point the advertising Hustle! If I were to do that in LA on the same side as this cat it would be saturated and I would have competition. If I tried this same game on the streets of Frisco then I’d probably dominate.
It’s like putting a Burger King next to a McDonald’s! Although it’s a different taste to the public its just a choice of hamburgers!
I thought about Clorox. It’s bleach. But most people refer to bleach as Clorox.
It is a self-defeating prophecy to follow a market leader. But I do believe you can take them out. It is probably easier to take out a status quo than a competitor on the same level.
Blockbuster is a good example as people were scared to open a video rental store. But Netflix and Redbox learned out to navigate around Blockbuster and operate at a lower cost than Blockbuster. Now Blockbuster is the one who is bloated and trying to scale down, which will be harder for them, making Netflix and Redbox the market leaders.
Operating at a lower cost, look for alternative ways to deliver the same product and service are ways to take out the status quo without resorting to price cutting. Just my two cents..
@Freedom – I forgot Clorox but that is a great example!
@Ed – 2 cents adds up and actually turns into some real money! I think you undervalued your comments here!
I agree with you 100% on the Redbox, Netflix angle I forgot what is the name of this kind of sales technique but basically provide a new way to receive the same product. Especially if the public perceives there is really no difference in the product you up and changing the delivery method could be a winner. The example that pops into my head is Amazon with the books in the beginning. Who knew people actually didn’t like looking for books and it made Barnes & Noble change up to providing a Starbucks like environment.
Alot of these are definitely game changes but unless you are doing something new then you are in 2nd place. I don’t care how many new phones come out Iphone is the leader of the market with all of it’s innovation and apps! Until someone comes up with something in left field it’s just a Iphone like phone to me!
I think you can follow a leader in the short term, but I don’t think it’s a good long term strategy. It would almost have to be completely price driven I think (ex. Sony DVD player v knockoff brand)and the appeal would be very short lived.
I think you can learn from a leader in terms of what to do or not to do, but eventually you have to branch off and make your own path.
I agree the leader can teach but if you make the same exact item you are bound to lose. Especially if the leader is dominating the market. It’s like bootleggers you know where the good one is but you see plenty of them selling the same movies.
At the end of the day when money is on the line if you have no way to differentiate your product most people will stick to what they know instead of trying something new. So you have to innovate or take the idea to the next town so you can be the leader!