In the spirit of the all-or-nothing mentality that guides my thoughts, I present to you the two approaches to create a new product or service that can be successful in the market.
WARNING: the author has never created a product or service that was successful in the market.
Approach 1: misfit
You create something different. Very different. Unexpected. That solves the problem in a different way, or even solves a problem that wasn’t considered as a problem.
A misfit represents novelty. Uniqueness. Personality. Ego. Nails on the chalkboard.
Its appearance is a challenge to everyone involved: customers, competitors, critics. The misfit can measure their success in terms of how much of a storm is raised by their appearance and continued survival.
The strategy of the misfit could be summarized as:
- Do something differently in a way that’s so compelling that people (users, investors, critics) will join you.
- Over time, remove the deal-breakers (be they absences or features) of the core offering, so that the base of appeal can be broadened without losing the core.
Approach 2: smooth fit
You create something similar to what exists, with a few small twists. You don’t present yourself as different, you present yourself as better. You naturally are a better alternative. You represent evolution, not revolution. You’re well dressed.
A smooth fit represents an obvious choice. A natural option. An option so natural and good fitting that it would be silly not to take it.
The strategy of the smooth fit could be summarized as:
- Be perceived as something like what exists, only better (cheaper, faster, sexier, with more features).
- Add a bit of edge here or there to stand out.
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Two archetypes of misfit and smooth fit are Apple and Microsoft, respectively.
My hunch is that it is easier to be successful to be a misfit in B2C and to be a smooth fit in B2B.
Another hunch I have is that the choice of strategy is not a choice at all, but rather a fixed function of the nature of the founders. Misfit founders will generate misfit companies. Smooth fit founders will generate smooth fit companies. It’s an interesting research question to see what happens when you combine founders of different natures in a single company.
As usual, I’m probably wrong. If you know how, please let me know: fpereiro@gmail.com