Why Startups Should Stop Competing and Start Creating
Imagine you’re a chef at a food festival. Every other booth is selling burgers, and you’ve decided to join the crowd. Now, you’re locked in a price war with 20 other vendors, each offering the same thing. What if, instead, you opened a booth selling gourmet sushi—something no one else offers? Suddenly, you’re not competing; you’re leading.
This is the difference between fighting for market share and creating your own category.
Idea #1: Competition Is a Trap
Most startups launch with the goal of achieving “product-market fit.” They work tirelessly to carve out a niche in an already crowded market. But here’s the hard truth: chasing product-market fit locks you into a cycle of endless competition. Your product is just one option among many, and your growth is limited by the existing rules of the game.
Insight: Competing in a crowded market forces you to lower prices, fight for attention, and constantly innovate just to keep up. It’s exhausting—and unsustainable.
Actionable Thought: Don’t aim to fit into a market; aim to create one. The startups that succeed are those that redefine the playing field entirely.
Idea #2: The Power of Category Creation
Instead of competing, the most successful startups focus on category creation. They don’t just improve existing solutions; they introduce entirely new ways of solving problems.
Take Airbnb, for example. They didn’t compete with hotels by offering cheaper rooms. They created a new category: community-driven travel. Tesla didn’t just build another car; they redefined what it means to drive sustainably. These companies didn’t join the race—they invented their own.
Insight: Creating a category transforms your startup into the default choice. You become the leader not because you’re better, but because you’re the only one.
Actionable Thought: Ask yourself, “What problem are we solving that no one else sees? How can we create a category where we are the only solution?”
Idea #3: Building a Monopoly Mindset
Category creation is the ultimate growth strategy because it doesn’t just lead to market share—it leads to market dominance. When you own a category, you capture customer loyalty, command premium pricing, and secure long-term success.
Insight: Startups that create categories enjoy over 70% of the market value in their industries. Why? Because they’re not sharing the pie—they baked it.
Actionable Thought: Think beyond your product. Focus on the problem you’re solving and build a story around it. Create a vision that customers can rally behind.
The INGENIZE Perspective
At INGENIZE, we help startups escape the competition trap by redefining their markets. Our expertise in category creation transforms your startup into the only player in your space, ensuring your dominance and long-term growth.
