A Smart Bear · Jason Cohen
articleprincipleWhy it's nice to compete against a large, profitable company
23 February 2025Profit
Source excerpt
About A Smart BearCompeting against big firms? Their revenue streams are their Achilles heel. Learn how smaller startups have a shot.
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Apollo layer
What a founder can learn
Founder takeaway
Don’t compete with a large incumbent on its strongest terms. Look for customers, pricing models, or use cases the incumbent is reluctant to pursue because doing so could weaken its existing revenue streams.
Why it matters
A startup’s advantage is often freedom from legacy economics. Choosing a wedge that conflicts with an incumbent’s revenue incentives can create room to win despite having fewer resources.
Put it to work
Ask: What valuable customer need would be economically unattractive—or disruptive to current revenue—for the incumbent to serve, but viable for us?
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