How Small Startups Can Thrive Against Tech Giants
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Chapter 1: The Challenge of Competing with Tech Giants
In the current landscape, large corporations such as Google, Apple, and Microsoft set the benchmark for software quality. Users have grown accustomed to these high standards, often expecting a similar level of excellence from all software applications. Many users are unaware of the difficulties involved in creating such outstanding products. Consequently, they tend to evaluate all software against what they regularly experience, putting immense pressure on smaller developers and businesses.
Competing against firms that recruit the best talent globally is no small feat. For instance, if you're launching a new music or video streaming platform, your application must stand up to giants like Spotify and Netflix to gain user acceptance. Crafting an equally impressive user experience can seem nearly impossible for fledgling startups.
However, small companies have a unique advantage: the ability to engage in actions that larger competitors cannot afford to undertake.
Doing Things That Don't Scale
What does this entail? While users are accustomed to top-tier products with stellar interfaces, they often settle for average customer service. Their expectations for customer support have been largely shaped by their experiences with larger companies. This is where smaller businesses can shine, offering personalized service that makes each user feel valued and special—something unattainable for companies with billions of customers.
As Paul Graham aptly puts it, "Tim Cook doesn't send you a hand-written note after you buy a laptop. He can't. But you can."
Being a small entity allows you to take extraordinary steps not only to attract users but also to ensure their satisfaction. You can explore creative ideas and redefine what user experience can be. A prime example is Wufoo, which sent hand-written thank-you notes to every new user.
Your initial users should feel that choosing your service was one of the best decisions they made. — Paul Graham
If you’re a developer working on a personal project, you are well-positioned to implement this strategy. By cultivating a strong relationship with your users, you can earn their forgiveness for any bugs in your application. For instance, I once received a 1-star review for my Web Highlights Chrome extension due to a bug. After promptly addressing the issue, the user changed their rating to 5 stars.
Engaging in "things that don't scale" can also be beneficial in various aspects of product development, including marketing. Consider Pinterest's early days, where they would visit Apple stores and set the browsers to their homepage. They no longer do this, but it was a successful tactic at the time. Similarly, Airbnb once rented a $5,000 camera and canvassed neighborhoods to take professional photos of numerous New York listings.
Numerous startups have leveraged these unconventional approaches to gain their first customers. To gather inspiration, explore more examples at dothingsthatdontscale.com, and discover how to distinguish your product from the competition.
Chapter 2: Embracing Uniqueness in a Competitive Market
The first video explores the risks of trusting major tech companies, emphasizing their indifference toward individual users. It serves as a reminder of the potential benefits small startups can offer in terms of personalized service.
The second video delves into the competitive dynamics between Google and Apple, highlighting how Apple excels in certain critical areas.
Final Thoughts
Competing against established software behemoths presents a daunting challenge. Producing software of superior quality may seem unfeasible. Thus, it is crucial to carve out a niche for your product in a distinctive manner. Engaging in practices that don't scale allows you to focus on exceptional customer service, making each customer feel special.
And who knows? If you succeed in delighting your current users, you may eventually face the delightful problem of having too many to cater to personally. Strive to make that a reality!
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About Me
I am a Software Engineering Analyst at Accenture Interactive, passionate about creating valuable content and products that enhance people's lives. For instance, my Web Highlights Chrome Extension allows users to highlight text on any page or PDF they encounter. You can categorize your research with tags and easily rediscover your highlights via the web app at web-highlights.com. Check it out!
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