Why “We Want to Be Like ‘X’ or ‘Y’ Company” Isn’t a Strategy

It’s easy to idolize successful companies and think, “If we do what they do, we’ll succeed too.” But mimicry is not the key to innovation and growth.

It’s also lazy.

Let’s dive into why copying others can actually hinder your progress, whether you’re a startup founder or a Fortune 500 CEO.

The Imitation Trap: A Case Study

Consider a mid-sized tech firm, Company A. They decided to mimic a major competitor’s products and marketing strategies. Initially promising, this strategy soon backfired:

Customer acquisition costs rose by 30%, straining budgets.
Customer retention dropped by 25%, increasing churn.
Employee satisfaction plummeted, with a costly turnover rate of 40%.

They lost their unique value and customer loyalty by chasing another company’s success.

The Problem with Imitation

1. Mediocrity Magnet

Copying often leads to mediocrity, keeping you reactive instead of innovative and proactive.

Be at the cause. Get my drift?

For startups: Pitch meetings become harder, making it challenging to secure funding.
For established companies: Justifying premium pricing and maintaining market share becomes difficult.

The more you look like someone else, the harder it is for your customer or user to discern between the choices. You’re on your path to becoming an undifferentiated commodity.

2. Loss of Identity

Trying to be someone else dilutes your unique strengths and culture.

For startups: You risk losing the passion and vision that founded the company.
For established companies: Long-time customers may feel alienated, affecting brand loyalty.

3. Missed Opportunities

Focusing on imitation blinds you to new market opportunities and customer needs.

For startups: You might miss out on creating a new market category.
For established companies: Potential areas for expansion or diversification could be overlooked.

Focus on Customers, Not Competition

When we obsess over competitors, we neglect our most important asset: our customers. Let’s look at two companies that prioritized customer experience over competition:

Apple

Strategy: User-friendly design and ecosystem integration.
Result: 1.8 billion active devices globally.
Takeaway: Prioritize user experience, whether you’re a startup or a large corporation launching new products.

Netflix

Strategy: Streaming and personalized content recommendations.
Result: 231 million paid memberships.
Takeaway: Use data to understand your customers’ preferences and tailor offerings accordingly.

How to Compete Differently

Instead of saying, “We want to be like ‘X’ or ‘Y’ company,” focus on giving competitors a run for their money:

1. Highlight Your Strengths

Conduct a SWOT analysis: Involve team members from all levels for diverse insights.
Identify unique capabilities: Whether it’s proprietary technology or a skilled team, leverage your strengths or turn weaknesses into them.
Develop tailored strategies: Prioritize technical innovation if you have a strong engineering team, or partnership-driven growth if you have industry relationships.

2. Listen to Your Customers

Implement feedback loops: Use tools like NPS surveys and customer interviews.
Analyze customer behavior: Invest in tools that track user engagement and churn.
Create customer advisory boards: Get direct input on product roadmaps and strategic decisions.

3. Keep Innovating

Allocate resources for R&D: Aim for 3-5% of revenue, even as a startup.
Encourage cross-functional collaboration: Host hackathons or innovation workshops.
Implement an idea management system: Use platforms like Aha! or IdeaScale for employee suggestions.

4. Balance Data with Intution

Create space for visionary thinking: Schedule regular “blue sky” brainstorming sessions
Trust your expertise: Recognize that intuition often stems from deep industry knowledge
Test intuitive ideas rapidly: Use lean methodologies to prototype and validate hunches quickly

Balancing Data with Intuition: The Power of Visionary Thinking

While data is invaluable, it’s crucial to remember that it represents the past. True innovation often comes from intuition, vision, and a deep understanding of human needs that may not yet be articulated. As Steve Jobs famously said, “People don’t know what they want until you show it to them.”

The Limitations of Data-Only Decisions

Data can’t predict paradigm shifts or disruptive innovations
Overreliance on data can lead to incremental improvements rather than breakthrough ideas
Historical data may not apply in rapidly changing markets or unprecedented situations

The Role of Intuition in Business Success

Spotting Emerging Trends
- Trust your instincts when you notice patterns or shifts in customer behavior
- Example: Netflix’s decision to invest heavily in original content was based on intuition about the future of streaming, not just existing data
Making Bold Moves
- Sometimes, the riskiest move is not taking a risk at all
- For startups: Your gut feeling might lead you to pivot your business model before data suggests it’s necessary
- For established companies: Intuition might guide you to enter a new market or discontinue a profitable but outdated product line
Connecting Disparate Ideas
- Innovation often comes from combining concepts in unexpected ways
- Encourage “what if” thinking sessions that go beyond current market data

Striking the Right Balance

Use Data to Inform, Not Dictate
- Let data provide context and background, but don’t let it constrain your thinking
- Example: Amazon’s decision to launch AWS was based on intuition about the potential of cloud computing, supported by their internal infrastructure needs
Create Space for Visionary Thinking
- Allocate time for “blue sky” brainstorming sessions free from data constraints
- Encourage team members to share hunches and gut feelings alongside data-driven insights
Test Intuitive Ideas Rapidly
- Use lean startup methodologies to quickly prototype and test intuitive concepts
- For larger companies: Create “skunkworks” teams that can operate outside normal data-driven processes
Develop and Trust Your Expertise
- Intuition is often the result of deep experience and knowledge
- Invest in continuous learning and diverse experiences to sharpen your intuitive skills

Case Study: Apple’s iPhone

When Apple introduced the iPhone in 2007, market data suggested that smartphones with keyboards were the future. However, Steve Jobs and his team trusted their intuition about the potential of touchscreen technology and user-friendly interfaces. This intuitive leap, combined with technical expertise, led to a product that redefined the entire mobile industry.

Building Your Own Strategy

1. Define Your Vision

Create an inspiring vision statement: Make it ambitious yet achievable, like becoming the most trusted financial partner for small businesses by 2030.
Align departments: Ensure every team’s objectives tie back to this vision.

2. Set Unique Goals

Use the OKR framework: Set key objectives with measurable results.
Focus on your strengths and market position: Prioritize rapid user acquisition for startups or market expansion for established companies.

3. Create Value for Customers

Develop a unique value proposition: Clearly state why customers should choose you.
Solve specific customer pain points: Identify top challenges and build solutions.
Continuously improve based on feedback: Test and iterate on new features.

4. Incorporate Intuitive Thinking

For Startups: Encourage founders to articulate and defend their vision, even if early data is inconclusive
For Established Companies: Implement “intuition workshops” where executives practice making decisions with limited data
Reward innovative thinking: Recognize and reward team members who successfully champion intuitive projects, not just those who meet data-driven KPIs

Benefits of Customer-Centric Focus

Benefit	Statistics	Application
Customer Loyalty	Loyal customers are 5x more likely to repurchase and 4x more likely to refer	Implement referral programs and upselling strategies
Long-Term Success	Companies with superior customer experience bring in 5.7 times more revenue	Invest in customer success teams
Standing Out	86% of buyers will pay more for better customer experience	Justify premium pricing through exceptional service

Potential Challenges and Solutions

1. Resistance to Change

Solution: Implement change management strategies.
Startups: One-on-one discussions with team members.
Large companies: Create a task force with representatives from each department.

2. Short-Term Thinking

Solution: Align incentives with long-term goals.
Startups: Tie equity vesting to long-term milestones.
Large companies: Implement long-term incentive plans for executives.

3. Resource Constraints

Solution: Prioritize high-impact initiatives.
Startups: Focus on a key differentiator before expanding.
Large companies: Create an internal venture fund for innovative projects.

4. Overreliance on Data

Solution: Create a culture that values both data-driven decisions and intuitive leaps
For startups: Encourage founders to trust their vision while validating assumptions quickly
For large companies: Establish innovation labs or incubators where ideas can be explored without immediate data validation

Conclusion

While imitating successful companies might seem like a shortcut, true business success comes from understanding your customers, leveraging your unique strengths, and continually innovating. By focusing on what makes you different, delivering exceptional value, and balancing data with intuition, you don’t just compete – you make the competition irrelevant. This applies whether you’re a two-person startup working out of a garage or a multinational corporation with thousands of employees.

Call to Action

Conduct a strategy audit: Are you focusing more on competitors or customers? Analyze the motivation behind your last five major decisions.
Survey your customers: What do they value most about your products? Aim for at least 100 responses for startups, 1000+ for larger companies.
Hold a brainstorming session: Involve team members from different departments to solve customer problems in unique ways.
Develop an action plan: Outline steps to shift towards a more customer-centric, innovative strategy, including timelines and success metrics.
Practice intuitive thinking: Set aside time each week to contemplate your industry’s future without relying on current data. Journal your ideas and revisit them regularly to refine your intuitive skills.

Remember, your unique journey is your greatest asset. Embrace it, trust your instincts, and let them guide you to true differentiation and success, whether you’re preparing for a seed round pitch or presenting to the board of a Fortune 500 company.

Platonic