Competition is for losers. Is it?
The failure rate for new startups is around 90% in India. It means only 1 out of 10 startups surviving in india. Do you know why? It just became those startup compete compete compete and died. There might be other reasons as well but the major reason for their failure lies in competition. If this is the case; can we conclude competition is for losers, so let’s figure it out.The next Bill Gates will not build an operating system. The next Larry Page or Sergey Brin won’t make a search engine. And the next Mark Zuckerberg won’t create a social network. If you are copying these guys, you aren’t learning from them.” — Peter Thiel.The whole idea about competition is all about creating 1 to N companies and compete with others to stay in the Market but at the otherside if you are creating something new, which actually doesn't exists in the current market; it's said to be going from Zero to one and monopolying Market.
Sometimes we find ourself answerless if we ask questions like is “Competition is for Losers”. This article is not about extreme answer of your question but rather a Perceptive on how competition is for actually for lossers from business evaluation.
Two Options
We have only two options to achieve whatever we want in life, either compete to achieve or find new path to get that stuff.
While choosing first we need to have some strategic tactics to beat others. We can only achieve what we want by beating the rest peoples. Having enhanced skills at something is important or critical step here.
But at the otherside we can choose something , where we do not need to beat the people to gain what we want. Here you need to have creative mind to escape the competition and find your own ways to be unique.
Looking From Business Perceptive
Peter Thiel's perspective on competition, as outlined in his book "Zero to One," is a bit harsh truth. He emphasizes the importance of creating a unique and valuable business (going from "zero to one") instead of simply competing in an existing market (going from "one to n").
Thiel argues that in competitive markets, profits tend to be eroded as companies compete for the same customers. He suggests that it's more valuable to create a monopoly-like situation by offering something truly unique, which allows a company to capture long-term value.
So, from Thiel's perspective, success comes from innovation and creating something new, rather than just competing in an existing market.
So undoubtedly we can say that extent of leading the market for long time is in the favour of those companies which follows ZERO to One Model.
Why Zero To One
Following the "zero to one" model, as articulated by Peter Thiel in his book "Zero to One: Notes on Startups, or How to Build the Future," encourages entrepreneurs to focus on creating truly innovative and groundbreaking solutions rather than simply copying existing ideas or improving incrementally. Here are a few reasons why following this model can be beneficial:
1. Innovation: The zero to one approach emphasizes creating something new and valuable, rather than competing within existing markets. This can lead to disruptive innovations that change industries and create new opportunities.
2. Market Monopoly:By focusing on creating something unique, entrepreneurs have the potential to establish a monopoly within their market. Monopolies can be highly profitable and provide a significant competitive advantage.
3. Long-term Success: Building something from scratch and creating a new market or industry can lead to long-term success and sustainability, rather than relying on short-term gains or incremental improvements.
4. Impact: Innovations created through the zero to one model have the potential to have a significant impact on society, improving lives and driving progress in various fields.
Overall, the zero to one model encourages entrepreneurs to think big, take risks, and pursue ambitious goals, ultimately leading to greater potential for success without falling apart of competition.
Final Thoughts
You see the companies which are earning good profits in current time but as the competition grows there profits decline year by year and end up with shutter down. At the other side exact opposite situation will execute because it tries to be innovative, unique and follows zero to one model. Hope you get the answer to your question.