In this episode we talk about how to win against any market Goliaths like Amazon and Uber.
Amazon is in the products business with Amazon basics. What is stopping Amazon from copying your product that you're probably selling on Amazon and just copying it and releasing their own version? Amazon has a huge information advantage over any other vendor that's out there because they are aggregating market data in whole and they can see how much demand there is for your product, how many competitors there are, where they can actually arbitrage and start competing with you.
So how do you start fighting against this? How do you win any time? There's a Goliath in your market, The only way to win is to vertical eyes. So let's say that you are competing against a company like Uber. If you're competing against a company like Uber, they're huge. What you would like or what you should be doing is differentiating yourself, and you're differentiating yourself so much by verticalizing. What verticalizing means is you are niching down as much as possible. So if you think about a vertical market vertical, let's say that the market vertical is mothers. Well, you want to keep verticalizing so you are drilling down even further and the reason you're doing this is because you are trying to get the attention of a very specific person. If there's a Goliath in your market, it will be very difficult for you to get this person's attention because their attention is already on the Goliath.
The only way to get this person's attention or get a person's attention is to be as specific as possible and get their ears perking up to the description that you provide. So if you say my service or product is for mothers, that's very vague. But if you say my service is for mothers who have five-year-old children, that is a little bit closer now. You might have some people in the audience listening and they might think, oh, that's me. I have a five-year-old child. Maybe this is something for me. If you get even more specific and say my service is for mothers who have five-year-old Children with special needs, that's even better. Right now. You are even more specific, but I would even vertical eyes even more than that, and I'll tell you why in a second. But if we drill down one more level and say my service is for mothers who have five-year-old children who have special needs who are homeschooled. And then now you are hitting all the right things for a specific group of people.
This is something you could not do before because you didn't have a lot of the advertising tools that you have today. Before, if you wanted to advertise, you advertised on mass media, so it could be a billboard that's confined to a geographic location. So out of the 10,000 people that drive by your billboard, your billboard might only make sense for one person if you are vertical eyes. So that's why it's tough to do that kind of advertisement. Same thing for the radio or for TV. However, Now you can do a Facebook ad or a Google ad and reach this specific person that you're trying to reach, and when you take the specific niche in aggregate, all of a sudden that actually becomes a large market size. So when you are verticalizing, you are trying to niche down as much as possible so you can get very specific for the niche that you are trying to deliver value for, and you will start attracting those people instead of trying to chase different types of people. And then once you start attracting these people and you dominate that entire market, then you can start to think about expanding.
And Amazon did this right with books they first started with books. They dominated that entire market, and now Amazon is has been moving on to e-commerce and AWS and Amazon, Prime and Whole Foods and who knows what else. So in summary, if you are going against a Goliath, then if you vertical eyes you will be able to reach this one specific customer that the Goliath is missing out on. And that's how you can come into the market with a really good vertical strategy. I hope that helps. I'll see you guys in the next episode.
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