What’s the best way to navigate competitive forces?

Peter Thiel (Co-Founder & Partner at Founders Fund)
Peter Thiel’s CS183: Startup – Class 3 Notes Essay

In perfect competition, no firms in an industry make economic profit. If there are profits to be made, firms enter the market and the profits go away. If firms are suffering economic losses, some fold and exit. So you don’t make any money. And it’s not just you; no one makes any money. In perfect competition, the scale on which you’re operating is negligible compared to the scale of the market as a whole.

What’s the best way to navigate competitive forces?

Paul Graham (Co-Founder & Partner at Y Combinator)
Startup Investing Trends

We currently advise startups mostly to ignore competitors. We tell them startups are competitive like running, not like soccer; you don’t have to go and steal the ball away from the other team. But if idea clashes became common enough, maybe you’d start to have to. That would be unfortunate.

What’s the best way to navigate competitive forces?

Sam Altman (President at Y Combinator)
Startup Playbook

99% of the time, you should ignore competitors. Do not worry about a competitor until they are beating you with a real, shipped product. In the words of Henry Ford: “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. “

What’s the best way to navigate competitive forces?

Michael Porter (Professor, Harvard Business School)
The Five Competitive Forces That Shape Strategy

To limit the threat of substitutes, offer better value through wider product accessibility. Soft-drink producers did this by introducing vending machines and convenience store channels, which dramatically improved the availability of soft drinks relative to other beverages.

What’s the best way to manage competition?

Peter Thiel (Co-Founder & Partner at Founders Fund)
Peter Thiel’s CS183: Startup – Class 12 Notes…

you want wars to be short. Let that process go on too long and you’ll lose yourself in it. So your strategy must be shock and awe. You have to win very quickly. But since very often it’s not possible to ensure a quick victory, your primary job is to figure out ways not to have war happen at all.