“If you're entering anything where there's an existing marketplace, against large, entrenched competitors, then your product or service needs to be much better than theirs. It can't be a little bit better, because then you put yourself in the shoes of the consumer... they ask, why would you buy it if you can choose a trusted brand unless there's a big difference? A lot of times, an entrepreneur will come up with something that's only slightly better. It can't be slightly better. It's got to be a lot better.”
— Elon Musk
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Simplified Meaning:
When you try to sell a new product or service in an industry where big companies are already successful, yours needs to stand out in a big way. Imagine you want to start a new soda company, but well-known brands like Coca-Cola and Pepsi are already popular. If your soda tastes just a little bit better than these famous brands, people probably won’t bother switching. They trust the brands they already know. But, if your soda tastes amazing, is much healthier, or much cheaper, then people will have a good reason to choose yours instead. So, if you’re creating something new in a crowded market, it must be significantly better to convince people to change their habits and try your product.
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Brand loyalty Business strategy Competition Competitive advantage Customer perception Disruptive innovation Entrepreneurship Innovation Market strategy Product developmentFEATURED QUOTES
