Business is a ruthless and dynamic world where staying ahead of the competition is not an easy task. But someone must be at the top right? So what differs from those at the top from those who fail?
Amazon and Google need no introduction. If you want to buy a book online, you probably go to Amazon (that’s where I get all of my books), and if you want to research the author of that book, or anything else, you probably go to Google. These two are absolute giants, the top of the industry, Amazon for retail and Google for search engine.
How did these two big companies get to the top?
Let’s start with Amazon.
Jeff Bezos was born on 12 January 1964. He studied computer science and electrical engineering. Bezos started his career on Wall Street and by 1990 he had become the youngest D E Shawn senior vice-president. In 1994 Bezos left the company to start Amazon.
Amazon launched in 1995 and gained its advantage by being the first business to enter the online retail market (this is called first-mover advantage). It had all the attention in the world, so they build a brand and acquired customers. No one else was buying from the competition because there was no competition, and what they did, they did it right. This as of key importance because selling online was new and people didn’t trust online shopping as much as these days.
Amazon had the vision to start a business no one else started and did a great job! They became Market pioneers.
The big challenge that pioneers face is the fact that the market is still unproven, not knowing customer needs or how people respond to the business, it becomes even more crucial to learn from mistakes and quickly adapt to feedback.
But what about Google?
Google started as a research project started by Larry Page and Sergey Brin. Their goal was to “develop the enabling technologies for a single, integrated and universal library”. Google was first released on Stanford’s website in March 1996 but Google began in 1998. As opposed to Amazon, Google was not the first of its industy. Yahoo was founded in 1995 and Ask Jeeves (now Ask) was founded in 1996. and there are a lot of others. So how did Google succeed in a market with emerging giants?
Google gained an edge because the service they were offering was much better than the competition. Their website was faster and returned much more accurate search results.
By providing a better service, Google was able to beat all competitors.
In order to gain an advantage over the competition, a company must either be first and good, or be better.
Of course these companies did a lot of mistakes, but they learned from it and got it right.
So don’t get stuck in thinking that maybe you shouldn’t start your company because no one else has done it (you might have a big opportunity here), or think you shouldn’t start your company because some one else has already started doing it (you just have to do better).
Entrepreneurship is a world to explore so make sure you read some of these: