The Strategy of Not Competing in Business

The key insight is that in business strategy, a successful approach is to build a 'walled garden' by allowing competitors to dominate certain markets while focusing on uncontested trade areas. This strategy aims to give competitors their space and not engage in direct competition. An example is Apple's success with the iPhone, where despite having a smaller market share than Samsung, Apple dominated in profits. By creating a unique position where customers only considered the iPhone without comparing it to alternatives, Apple was able to charge premium prices and win in the profitability metric. By not actively competing in overcrowded markets but instead focusing on creating a distinct value proposition, a company can achieve success without engaging in traditional competitive battles.