HBR On Strategy

The Strategy Mistake Too Many Startups Make

18 snips
Oct 25, 2023
Learn how startups can avoid the strategy mistake of copying successful companies, and instead focus on finding underserved customers and working with early adopters. Hear examples from Uber, Airbnb, and Netflix. Discover the importance of operational excellence and unconventional customer acquisition methods in the early days of a startup. Explore how Airbnb targeted early adopters and used limited technology. Understand the role of technology in startups and the importance of identifying the right product and acquiring customers.
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ADVICE

Early Customer Acquisition

  • Focus on understanding why early customers choose your product over alternatives.
  • Don't prioritize optimizing for low customer acquisition costs too early.
ANECDOTE

Niche Market Targeting

  • Uber and Airbnb initially targeted niche markets underserved by existing options.
  • Airbnb focused on attendees of events with fully booked hotels, while Uber targeted areas with limited cab access.
ADVICE

Leveraging Early Customers

  • Early customers offer more than just revenue; they provide valuable feedback and spread word-of-mouth marketing.
  • Leverage their insights for R&D and product development.
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