How to own your category
It's not the easy path. It's just the one that works.
Hello again.
You don’t have to be a high-flying tech company to own your category.
Because category design is built on the laws of the mind, it works for every kind of business.
So I spent the last couple years trying to codify the exact steps any business would take to carve out a category it can be the leader of.
Big or small, tech or not, here are the exact steps to take:
𝟭) 𝗔𝗻𝘀𝘄𝗲𝗿 𝘁𝗵𝗲 𝗰𝗲𝗻𝘁𝗿𝗮𝗹 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻.
—> “How do we make something people want, for which there’s no replacement?”
Write your answer in a single sentence. This is your starting point.
𝟮) 𝗖𝗵𝗼𝗼𝘀𝗲 𝘆𝗼𝘂𝗿 𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝗣𝗹𝗮𝘆.
There are 4. Let me expand a little more on this one.
--> CREATE
e.g. Salesforce, OpenAI, Uber, Stripe, Google Docs, Figma, Shopify, AWS
Category creators invent a completely new product that addresses unmet customer needs.
This is the play most people know about (but not always the best move).
Choose create if no existing category comes close to your product vision.
--> TRANSFORM
e.g. Tesla, iPhone, Slack, Facebook, Chrome, Zoom
Category transformers change an existing category to become its leader.
Electric cars existed before Tesla.
We had smartphones years before Apple’s iPhone.
MySpace was huge before Facebook.
These companies took an existing category and changed our image of what it could be - to become its leader.
--> NICHE
e.g. LinkedIn, Box, Webflow
Niche down so you own a subset of a larger category.
This is the easiest, most straight-forward play - and because of this, there’s perhaps less upside.
Choose Niche if you don’t have the innovation to create a category or the juice to transform and overtake an existing category leader. But you can identify a segment or mindset in that category with unmet needs.
--> SOLO
e.g. Notion, Superhuman, Snap
Solo is special. These are product and brand experiences that are so totally different, they become a category of one in the mind of the customers.
Porsche is an example. Superhuman is another. They aren't #1 in their rational categories but for the right customer, there’s no replacement for what they do.
These companies tend to be masters of vibe, voice, look and feel - stylistic things. Notion is a perfect example of how a tech company can win with style, not just features.
What play am I running for Gold Front? Create.
𝟯) 𝗪𝗿𝗶𝘁𝗲 𝘆𝗼𝘂𝗿 𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝗣𝗢𝗩.
Write a strategic narrative (your story) that includes these ideas:
Most Important Customer - one customer.
Their Ambition - what do they really want deep down?
The Enemy - what's standing in their way?
The Category Idea - what you’re selling. The one thing that defeats the enemy and gets your customer to their Ambition.
𝟰) 𝗨𝘀𝗲 𝘁𝗵𝗲 𝘁𝗵𝗿𝗲𝗲 𝗹𝗲𝘃𝗲𝗿𝘀 𝗼𝗳 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗶𝗮𝘁𝗶𝗼𝗻.
Use the concepts in your Category POV to innovate in the areas of 𝗽𝗿𝗼𝗱𝘂𝗰𝘁, 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗺𝗼𝗱𝗲𝗹 and 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴.
𝟱) 𝗨𝗻𝗶𝗳𝘆 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗮𝗻𝗱 𝗺𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴.
Get your product and marketing teams in sync. This is a rare feat. When you achieve it, customers will sense that something very special is happening at your company.
𝟲) 𝗥𝗲𝗽𝗲𝗮𝘁, 𝗺𝗲𝗮𝘀𝘂𝗿𝗲, 𝗶𝗺𝗽𝗿𝗼𝘃𝗲.
The ability to ask and answer the central question every single day - and adjust accordingly - is one quality that sets great founders apart.
Of course, completing these steps can take years and there's absolutely no guarantee of success.
But if you're wired a certain way, the only way out is through.
I hope this helps.
If you’re already on the journey and you’re struggling with one of the steps, I’d be curious to hear about it.
See you next week.