Why you should stop making an MVP and try to focus on strategy first

One of the most important things in business is doing your job differently. Marketers proclaimed this principle in the last century. And it's still relevant today.

It's not enough to create a product that people will buy. You need to create a product with a competitive advantage that is difficult to replicate. This is the new headache for hackers, and not everyone is ready for it.

From Uniqueness to Overflow

The concept of a Minimum Viable Product (MVP) is 22 years old, coined by Frank Robinson, CEO of SyncDev, and popularized by Steve Blank and Eric Ries.

Startups emphasize releasing an MVP quickly to gather feedback and avoid wasting resources. The purpose is to reduce the risk of failure. This approach has one critical detail that is often overlooked.

A crucial detail is defining the Minimum Viable Product, as understood by SyncDev. An MVP is a unique product that maximizes the return on risk for both the vendor and the consumer.

At the beginning of the 21st century, every second product could be considered unique, but now there are many available solutions. However, the idea of an MVP remains popular. We continue using kerosene lamps, even though electricity has been available in homes for a long time.

Competition for Existing Demand

In a world of rapid technology commoditization, product development now happens in just days or weeks. No-code tools, AI and open APIs enable new possibilities, resulting in a surplus of similar offerings and exceeding current demand for such products.

Visiting Product Hunt, Y Combinator batches, or similar resources reveals that uniqueness in products is rare. Many are simply faster, better, cheaper solutions. They often follow trends like "X for Y in Z" or "Uber for chefs in India."

Most of these products target existing markets, with substitutes available. They compete in spaces where established companies operate, and customers expect certain quality levels. The opportunity for a first version with limited functionality lies in markets that do not yet exist.

In such situations, it becomes crucial to explore new avenues of demand. Shifting focus to capture the majority share of emerging demand and viewing competition as an ongoing process of creating new demand.

Business Shapes the Market and Defines Competition

Business is not solely dependent on the market and competition; it plays a crucial role in shaping the market and defining competition. In other words, business has the power to influence and mold market dynamics. This distinction between competing for existing demand and creating new demand is key. To understand this better, ask yourself, "How can I escape the competition?"

Strategy is an answer to this question. Strategy is about being different. Strategy is creating new demand. Strategy is the unique value you bring to the market.

Instead of fixating on competition, it is vital to focus on expanding the market offering. By delivering more value beyond price and exploring innovative approaches that the industry has not considered, we can render competition irrelevant. This leads to greater differentiation and profitability for our business.

What is most important is a strategy to create a position in consumers' minds. Positioning is a tool that marketers have been using for a long time to establish a stable association for their product.

Creating New Demand: Moving Beyond Saturation

Do musicians constantly compete? No.

Each musician is independent, focusing on their unique understanding, artistic structure, and value. Authenticity makes them beloved. It would be odd to see renowned artists like Lady Gaga or Rammstein relying on Google ads and competing for the same demand.

Companies expanding their market offerings bypass direct competition. They create alternative ways to meet needs, introduce new product categories, and prioritize customers. This approach leads to success in marketing, sales, product development, fundraising, and more.

If your goal is to perform in stadiums rather than small events, remember that cover bands don't make it into the Rock and Roll Hall of Fame.

If you want this, start with strategy, not product.