ScalingEmerging Pattern

After product-market fit, good enough beats better. Leaders are hard to dislodge

Once a company achieves product-market fit, the market leader becomes extremely difficult to dislodge even with better or cheaper products. The leader only needs a good enough product to maintain supremacy because of compounding advantages in margins, recruiting, partnerships, and fundraising.

When to use

When deciding whether to compete against an established leader with PMF. When evaluating defensive moats

Don't do this

Assuming a better product will automatically win against an entrenched leader

1 Founder Who Did This

1
Wealthfrontby Andy Rachleff

Dropbox maintained market leadership despite Google and others significantly dropping prices, demonstrating that post-PMF leaders only need good enough products

Result:Dropbox continued to lead its category. GE research shows leaders consistently capture 40 percent share long-term
Read full story →