Gözde Yeşiltaş's Key Ideas from Competition Demystified
by Bruce C. Greenwald, Judd Kahn

Insight: Winning small is better than losing big—own a niche before expanding.

Reflection:

• Is my business trying to expand before securing a stronghold?

• Where can I create monopoly-like control over a market segment?

Dos & Don’ts:

✔ Focus on one niche before expanding.

✘ Don’t spread resources thin across too many markets too soon.

Advanced Tip: Master local or industry-specific markets first, then scale horizontally.

Insight: Companies with market power (distribution control, scale, or network effects) outlast innovators.

Reflection:

• Do I have pricing power over competitors?

• What makes my position hard to replicate?

Dos & Don’ts:

✔ Control distribution points to maintain influence.

✘ Don’t assume a better product automatically wins.

Advanced Tip: If you can’t build an outright monopoly, aim for a quasi-monopoly through branding or contracts.

Insight: Companies that control logistics, production, or distribution can operate at lower costs than competitors.

Reflection:

• Is my cost structure giving me an advantage or just keeping me afloat?

• Can I negotiate better deals with suppliers or distributors?

Dos & Don’ts:

✔ Build cost advantages through economies of scale.

✘ Don’t assume being small and lean is always better—big companies dominate for a reason.

Advanced Tip: Look at Walmart: its supply chain efficiency is its real competitive advantage.

Insight: First-mover advantage is overrated; long-term control over key assets matters more.

Reflection:

• Is my competitive edge based on early entry or long-term sustainability?

• What prevents others from doing what I’m doing?

Dos & Don’ts:

✔ Focus on staying ahead, not just being first.

✘ Don’t expect pioneering alone to guarantee success.

Advanced Tip: Watch how Microsoft, not Apple, dominated the PC market—control matters more than innovation.

Insight: Dominant firms use pricing strategies to keep competitors out.

Reflection:

• Am I using pricing signals to ward off competitors?

• How much margin do I need to sacrifice to maintain dominance?

Dos & Don’ts:

✔ Use aggressive pricing to discourage new entrants.

✘ Don’t underprice yourself into unsustainable losses.

Advanced Tip: Price in a way that makes market entry look unattractive to competitors.

Insight: Businesses thrive when their product becomes more valuable as more people use it (e.g., social networks, payment systems).

Reflection:

• Is my business model designed to get stronger over time?

• How can I make it hard for customers to leave?

Dos & Don’ts:

✔ Build ecosystem dependencies (e.g., Apple, Google).

✘ Don’t let competitors leverage your platform against you.

Advanced Tip: Control access points—if others depend on your system, you control the industry.

Insight: Competing head-on is expensive—instead, change the game to something only you can win.

Reflection:

• Can I sidestep competition rather than face it directly?

• What can I offer that my competitors can’t replicate?

Dos & Don’ts:

✔ Redefine the rules in your favor.

✘ Don’t get caught in price wars unless you have a clear advantage.

Advanced Tip: Find an uncontested market space and own it (Blue Ocean Strategy).

Insight: Expanding too fast makes you vulnerable; defending your position is as important as growth.

Reflection:

• Is my business expanding at the right pace?

• Am I focusing on defending my strongest position before growing?

Dos & Don’ts:

✔ Prioritize fortifying what you already have.

✘ Don’t overextend into unprofitable areas just to grow.

Advanced Tip: Amazon started with books, then strategically expanded only after logistics dominance.

Insight: Perception shapes market behavior—your company’s image can be a deterrent or an invitation.

Reflection:

• Does my brand signal strength or vulnerability to competitors?

• Am I making my company seem too formidable to challenge?

Dos & Don’ts:

✔ Shape your public perception carefully.

✘ Don’t reveal all your weaknesses.

Advanced Tip: Sometimes, it’s smarter to stay under the radar until dominance is secured.

Insight: A great strategy isn’t just about short-term wins; it’s about creating a long-lasting advantage.

Reflection:

• What am I doing today that will still work in 10 years?

• Can my business survive market changes, technology shifts, and new competitors?

Dos & Don’ts:

✔ Focus on long-term resilience over short-term tactics.

✘ Don’t ignore emerging threats just because today’s position is strong.

Advanced Tip: Study companies that dominate for decades (e.g., Disney, Berkshire Hathaway) and learn how they adapt without losing their core advantage.