Youngme Moon, is a teacher at Harvard businnes course, and she wrote "Escaping the competitive herd" which is going to be our main topic in this article.
A funny thing happens when you start noticing competitive differences on paper (...) there's a natural inclination for people in the competitive set on focus on eliminating differences instead of accentuating them.
One of the most important things when we analyze a company or a crypto by itself maybe is their marketshare. Hardly we can see the long-term competitive advantages of a company without sticking to its competitiveness towards its peers. In this matter, to evaluate wether an asset (stock or crypto) really has quality, we must check the dinstiction of its products or services when compared to those of the same sector.
There are innumerable ways for a company or crypto to compete with each other. Some have better products, others have low fees, are just one of the ways to show and create a competitive advantage. However, as said in the quote above, companies and crypto should take advantage in their difference to increase their differences in order to be unique in their sector.
Companies are relentless in trying to find their flaws, their weak link, they hire consultants, ask custommers for feedback. In that way, companies and costumers acquire the habit of thinking that the best way to evolve is eliminate the differences between them.
When we think of the competitive market in which companies are inserted, it is as if we are back to school: competitors and customers tell us what we don't have, that is, where we are below average. So, the focus of innovation for many companies is limited only to reaching competitors, when defining the focus on what they already do well, that is, their differential. As a result, consumers do not allow company Y to be differentiated from Company X. Supermarket shelves are full of identical products, differentiating are minimal.
In the race to become more similar to all others, many companies end up setting aside projects that seek precisely to bring differentiation to the business.
The fact is that good companies and good crypto projects are those that have a differential capable of making them unique in their segments. And these are the assets that we, investors, should look for. Because, in the final analysis, the continuity of the business is guaranteed precisely by this differential, which makes consumers continue to purchase their products or services over time.
