32. A Recipe For Domination: Long Term Thinking, Moats And Asymmetric Warfare
May 16, 2018
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Learn about the significance of long-term thinking and moats in business. Discover how to develop a sustainable competitive advantage by focusing on systems, funnels, and branding. Understand the importance of building a brand for long-term success and the strategies used by Amazon to dominate the market. Explore the role of team building and company culture in achieving long-term success.
Long-term thinking and building a moat around your business are essential for gaining a competitive advantage that is difficult for others to replicate.
Implementing effective systems, focusing on mastering specific channels, and creating proprietary technology and solutions can provide a unique advantage in the market.
Deep dives
The Importance of Long-Term Thinking
Long-term thinking is crucial for success in business. While many business owners and entrepreneurs focus on short-term gains and quick advantages, the most successful individuals, like Jeff Bezos, prioritize long-term thinking. Easy and cheap advantages quickly lose their value as others catch up. To achieve lasting success, it is necessary to think about how to gain a competitive advantage that others cannot easily replicate in terms of complexity, time, or cost. For example, Amazon's competitive advantage lies in its extensive fulfillment network, which is difficult and expensive to replicate.
The Power of Systems
Implementing effective systems in your business can provide a significant advantage. Instead of randomly guessing and working on various tasks each day, having systems in place allows you to focus on specific areas that drive progress. By mastering a particular channel or strategy, such as Facebook ads, and building a refined funnel, you create a unique advantage that is hard for others to replicate. Additionally, building a strong brand and creating proprietary systems further solidify your competitive edge.
Building a Strong Team and Embracing Technology
To achieve long-term success and growth, it is crucial to build a strong team and invest in technology. Many small businesses remain small because they are unwilling to take risks, invest more money, or hire a dedicated team. By building an in-house team, training them, and creating a unique company culture, you gain a competitive advantage that others cannot easily obtain. Furthermore, developing proprietary technology and solutions, rather than relying on pre-existing software and templates, sets you apart and allows you to make better-informed decisions. Embracing asymmetric warfare, which involves playing by different rules than your competitors, further enhances your chances of success.
How can you do things that others can't? That's the question you must ask yourself if you want to gain a competitive advantage, slaughter the competition and win in business. Most entrepreneurs try to gain "easy advantages". They ask the question: "What's fast, cheap and easy to build that will give us an advantage?". The problem with easy advantages is that they are replicated easily and when that happens, they are no longer advantages. Billionaires ask the advantage question another way...They ask: "What's slow, extremely expensive and excruciatingly hard to build that will give us an advantage?". The best competitive advantages are the ones with "moats" and high barriers to entry. In this podcast, I share exactly how you can build a moat around your business so that you can slaughter the competition and win.
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