Sublime

When you launch a new product, the first question to ask yourself is not “How is this new product better than the competition?” but “First what?” In other words, what category is this new product first in? Charles Schwab didn’t open a better brokerage firm. He opened the first discount broker.

and focus resources in an efficient manner.

They began with that strategy from day one: All successful low-price companies focused on low prices and high volumes from the very beginning. In many cases, they created radically new business model

every aspect of a practice group’s affairs, from practice development to hiring, from economic structure to governance, will be affected by its relative positioning on this spectrum.

The most successful products change how customers see the world. Differentiation is for your customers, but it’s also for you. It’s the essence of your strategy; the most important thing your team needs to deliver. It’s a North Star, a plan of action, and a decision-making guide, all rolled into one.

Patagonia founder Yvon Chouinard discusses in his book, Let My People Go Surfing: The Education of a Reluctant Businessman.

We are constantly making decisions about whether something is worth our money, or trying to convince others to part with their money.

large retailer. This was a powerful barrier to entry. By being first, Walton was able to preempt competitors and discourage them from entering Walmart’s territory, allowing the company time to hone the enduring sources of its competitive advantage: its ability to provide everyday low prices in markets all across the country and beyond.

Many legal scholars have already drawn attention to the fact that the operation of the market hinges on legal institutions that facilitate price discovery.