Product StrategyProven Pattern

Tack to win. Build a fundamentally different product, not a better version of the leaders

Q: How many founders have validated "tack to win. build a fundamentally different product, not a better version of the leaders"?

4 founders have proven this pattern works. Examples include Jeffrey Katzenberg (DreamWorks Animation (Shrek)), Ayo Omojola (Cash App / Substrate), Jason Fried (ONCE by 37signals).

To overtake an entrenched leader, change the definition of the market rather than compete head-on. Like sailors who tack to catch different wind, challengers succeed by building different products for the same customers, not incrementally better copies.

When to use

When competing against an established market leader. When your better product is not gaining traction

Don't do this

Copying the leaders approach with lower prices or incremental improvements, being a Monkey

4 Founders Who Did This

DreamWorks Animation (Shrek)by Jeffrey Katzenberg

Instead of making Disney-style fairy tales, created irreverent animated films that satirized Disney conventions with celebrity voice casting and pop-culture humor

Result:Shrek won the first Academy Award for Best Animated Feature, spawning a franchise that grossed billions and established DreamWorks as a viable alternative to Pixar

Cash App / Substrateby Ayo Omojola

Built products targeting 90% improvement over alternatives rather than 15%, differentiating across cost, speed, simplicity, and beauty/status dimensions

Result:Cash Card achieved viral adoption without paid marketing; Substrate targets 10x improvement in medical billing efficiency through AI automation

ONCE by 37signalsby Jason Fried

Launched ONCE product line in 2024 selling software as one-time purchase ($299) instead of SaaS subscription, directly challenging the model they pioneered. Self-hosted with single-command install.

Result:Created industry conversation and differentiated against subscription fatigue, adding a new revenue model to complement existing SaaS products

Quantaby Helen Hastings

Built own financial ledger from scratch with continuous reconciliation rather than building on QuickBooks like failed competitors Bench, Pilot, and Indinero

Result:Avoided the trap of human-heavy operations, maintained viable automated business while competitors collapsed or pivoted

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