This is what you get when someone is able to launch something that is not only cheaper, but also better. It’s kind of an irresistible	proposition. Most new things that are better don’t tend to also be cheaper. Often this is only possible with a whole new technology or approach. It’s like when the first taxi apps started appearing. To me it was like hang on, this is way better — no trying to catch a taxi in the rain, simple, non-awkward, no swinging by the ATM payments — and also cheaper. It’s also similar to Target’s Cheap Chic.

It is of course, not the only way to compete. If you make something better, people will pay what it’s worth to them. But if you can do it cheaper too you’re on to a winner. 

Sexy value is a name, I believe, from Ogilvy and Mather.

You might also like another model of theirs: The Big Ideal.

Sexy value

This is military strategist John Boyd’s framework for combat operations that also turns out to apply quite well to businesses and learning in general. It’s really not that far from the ol’ test-learn cycle or a good design process.

There’s lots of nuance to his framework, but some of the application of it that I like includes:

The faster you can do this loop — at your startup or in a fight — the more stuff you will get to try and the faster you will learn

If you’re in competition with another entity then completing your OODA loop fast, and acting to change the environment for them, disrupts their loop and forces them back to observe before they can act. It slows them down and creates confusion

I learned about it from Reid Hoffman’s excellent Masters of Scale podcast.

OODA Loop

A remarkably common pattern for the evolution of many things. You see it all the time in the evolution of technical things, but also many systems in general.

When you start to reach the top of the limits of what one system can do you’ll start to see a focus on efficiency, cost reduction and small improvements and optimisation. This is great because it forces a new creative solution to arise in order to make any real progress. An image search gives a few examples.

Also, see some related sketchplanations: The long nose of innovation, designing for adoption, understanding the chasm.

The S-curve.

Nifty water camouflage practised by dolphins, porpoises, some fish and other neat sea creatures. The simple strategy: look light like the sky for anyone below, and look dark like the sea for anyone above. 

Counter-shading

Cheat sheet for Crossing the Chasm by Geoffrey Moore

Sketchplanations tagged with strategy