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Let me ask you a question...

How much money will you make in a football league where you have the only team?

Why would people want to watch you?

Why would anyone be interested in football to begin with?

Business is like football in that it takes a least 2 teams -- or brands -- to get a crowd interested.


Why You NEED Competition... in the Beginning

What do you think the best thing that ever happened to Coca-Cola was?

I'll give you a hint: It's the Next Generation...

Give up?

It was Pepsi, and that may be why Coca-Cola refused to buy the company after being given several offers in the early 20th century.

Take a look at the chart below:



What you'll notice is Pepsi didn't act to take sales from Coca-Cola; instead, Pepsi acted to get more people interested in Cola as a whole.

As a result,  more people started drinking Cola, versus other drinks, and the soda market when through the roof!

Pepsi is still #2 in soft drink sales today, but only because Coca-Cola came first. As I've taught you, entering or creating a new products or service category first, is CRITICAL to your success.

The benefits of competition in a new industry category:

  1. It gives more legitimacy to what you are selling. Customer: "Oh, they're selling that stuff too. It must be pretty good."
  2. It increases the scope of your promotions. Customer: "I've never heard of that stuff before. Who else makes it?"
  3. It pulls away customers that used to shop in other categories, and introduces them to yours. "I'm sick of milk.... what else is there to drink?

So, if you are creating a new category, be sure to invite competition. Do not try to legal the hell out of them by sending in blood-thirty intellectual property lawyers and slander campaigns.

Consider IBM. In their early ad campaigns -- they didn't advertise IBM -- they advertised the computer.


Yes, other brands were making computers.

And yes, these ads could have sold the computers of competitors.

However, IBM saw it more critical to get the mass market interested in buying computers, instead of just getting them interested in IBM.

After all, what good was IBM if people didn't know about computers?

Don't compete — DOMINATE.


Matt Steffen

"Don't compete -- DOMINATE!"

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Matt Steffen was Listed by Forbes as the #1 Marketing Consultant Who Avoids the B.S.