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 →