Don't Be the First; Be the Best

The common perception in business is the first one to the market place wins. If they don’t win, they at least have a large competitive advantage over “late comers.” Second and third entrants spend the majority of their time playing catch up – if they ever do. Apple is one of the companies who has found the secret sauce to debunk this myth. The new motto: Don’t be the first; be the best.

Samsung Watch

On September 25, 2013, Samsung released the Galaxy Gear watch. Writers immediately began to question whether Apple had lost it’s “innovative mojo” in this post-Steve Jobs era. However, shortly after it’s release, critics of the Galaxy Gear are writing about the watch’s  limited number of apps and low camera resolution. Apple is doing the right thing by waiting. 

Merck had two of the first stains on the market: Mevacor and Zocor. Then Pfizer developed Lipitor. Within nine months Lipitor had overtaken the statin market. Within one year, Zocor lost ground that it never regained. Pfizer had “done it better.” Here are three examples in the technology sector.

iPod / iPhone / iPad

Contrary to what my teenage daughter thinks, the iPhone was not the first cell phone, the iPod was not the first MP3 player and the iPad was not the first tablet. Apple waits patiently for the market to be right. This calculated strategy allows it’s products to dominate in their class. HP, Dell and Lenovo were all top selling tablets in 2009 – the year before the release of the iPad. Apple waited until 2010 to release the best product to the market. Result: within 1 year Apple had nearly 70% of the tablet market.

Coffee, Anyone?

Starbucks didn’t invent the cup of coffee. My parents used to enjoy a cup of Folgers in the morning. Now my mother rewards herself with “cup-a-Joe” from her local Starbucks barista. Starbucks has designed a unique experience for their customers. The comfortable chairs, the soft music and the aroma of freshly brewing coffee beans all contribute to a relaxing atmosphere. They created an area for families, business people and artists to congregate and talk. Finally, their superior tasting coffee and the experience they create for customers makes us want to pay $6 for a venti triple espresso with non-fat milk. Result: 33% market share; 8 million coffee drinks sold per day.

Mail Order is Fun! 

Remember when you ordered only books from Amazon? The online retailer has made mail order fun! As a kid ordering 8-tracks and cassette tapes, I wrote my order (on paper), wrote a check (more paper), placed a stamp on the envelop (more paper), drove to the post office (gas) and waited 4 – 6 weeks for my order to arrive. I’m getting exhausted just thinking about it! Amazon improved the process by creating a store where consumers sell their own goods, offering next day shipping for a low price and expanding their product offerings (80″ LCD, anyone). 

Apple, Starbucks and Amazon were not the first companies to create their respective products. In many cases they were years behind the competition. However, by providing the best products, the best experiences and the most innovative processes, they have become leaders in their industries. Even if you don’t cross the finish line first, you can still win.