Navigating the Now Economy

On this special 400th episode of Christopher Lochhead: Follow Your Different, Christopher and guest Al Ramadan discuss their new book, “The Existing Market Trap.”

They explore the pitfalls businesses face when trying to innovate within established market categories, emphasizing that fitting new ideas into old frameworks stifles innovation. They advocate for category design, which involves creating new market categories rather than competing within existing ones.

They also introduce the “13 deadly sins” that entrepreneurs often commit, offering insights to help avoid these common mistakes.

You’re listening to Christopher Lochhead: Follow Your Different. We are the real dialogue podcast for people with a different mind. So get your mind in a different place, and hey ho, let’s go.

Al Ramadan on Understanding the Existing Market Trap

The “existing market trap” refers to the tendency of businesses to try to fit new ideas into old categories. This approach often stifles innovation and growth, as companies focus on competing for market share rather than creating entirely new markets. Al and Christopher argue that this mindset is fundamentally flawed and that true innovation comes from redefining problems and opportunities rather than fitting new solutions into outdated categories.

Some of the consequences of the market trap include financial loses, Constantly competing in saturated markets can lead to exhaustion and disillusionment among founders, and loss of strategic direction by the company. 

Al Ramadan on The Power of Category Design

Category design is a business strategy that focuses on creating new market categories rather than competing within existing ones. This approach allows businesses to escape the constraints of established market definitions and pursue groundbreaking innovations.

Why is Category Design Important? Category design is essential because it empowers companies to reshape the market landscape rather than simply compete within it. Instead of fitting into existing frameworks, successful businesses create entirely new categories that address previously unmet needs, unlocking fresh opportunities for innovation and growth. This strategic approach also plays a critical role in building belief, both internally and externally, in a company’s vision. By shaping perception and defining a unique space, category design helps generate demand, positioning the business as a leader rather than a follower.

The 13 Deadly Sins of Category Design

Al and Christopher introduce the concept of the “13 deadly sins” that entrepreneurs often commit when scaling their businesses. These sins serve as cautionary tales for founders who may be tempted to chase after existing market demand rather than focusing on creating new opportunities.

Several common pitfalls can hinder a company’s success in the market. One is the Engineer’s Dilemma, where teams become overly focused on technical features instead of addressing broader market needs. Another is the Obviously Better Fallacy—the mistaken belief that having a superior product alone guarantees market success. Finally, the Horizontal Tool Illusion occurs when a company tries to serve everyone, rather than honing in on a specific market segment. These missteps can dilute value, confuse customers, and ultimately prevent a product from gaining traction.

To hear more from Christopher and Al Ramadan about the existing Market Trap, download and listen to this episode. 

Bio

Al Ramadan is a co-founding partner of Play Bigger Advisors and coauthor of the book, Play Bigger. He also co-founded Quokka Sports, which revolutionized the way people experience sport online.

Al then joined Macromedia and Adobe, where he spent almost ten years changing the way people think about great digital experiences. At Adobe, Al led teams that created the Rich Internet Applications category and helped develop the discipline of experience design.

In the early ‘90s he applied data science to Australia’s Americas Cup — an innovation in sports performance analytics. His work in sailing led directly to the idea for Quokka. He lives in Santa Cruz, California.

Links

Connect with Al Ramadan!

Play Bigger | LinkedIn | Category Contenders | The Science Behind Category Design

We hope you enjoyed this episode of Christopher Lochhead: Follow Your Different™! Christopher loves hearing from his listeners. Feel free to email him, connect on Facebook, X (formerly Twitter), Instagram, and subscribe on Apple Podcast / Spotify!