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Doing the work

Our competitor's category is bigger and better funded. How do I carve out a segment we can actually win?

Find the buyer who feels one specific pain more sharply than anyone else and build the whole story around them, even if that shrinks your addressable market on paper. A big player has to serve everybody, so there is always a segment where their generality is a real handicap, and that segment is where you should refuse to lose. Say out loud which customers you are not for, because the willingness to disqualify is what makes the claim believable. Freshdesk did not out feature Zendesk, it picked the SMB that hated the price and the complexity and owned that ground.

Go deeper

5 resources, 2 India-specific, 5 link-checked.

📄 Article
✓ Link checked India Free Beginner

The founder's own account of entering an existing category (help desk) against Zendesk rather than inventing a new one, and winning on price and simplicity for SMBs. The clearest India example of segment choice beating category invention.

The Freshdesk Story: Where and How it All Started

From Freshworks by Girish Mathrubootham 9 min read

  • The idea came from a Hacker News comment about Zendesk raising prices 60 to 300 percent.
  • The founders quit in October 2010 and ran a six person team on roughly 5K dollars a month, paying 30 to 50 percent of market salary.
  • About 350 to 400 dollars of ads across Google, Facebook and LinkedIn produced more than 150 valid signups.
  • Talking to SMB customers pushed multiple support emails, SLAs and business hours ahead of social integrations.
Open freshworks.com
📰 Newsletter
✓ Link checked Freemium Intermediate

Kramer's four product types (vertical solution, new way, 10x better, buy versus build) tell you what you are positioning against before you write a word. She is also blunt that most positioning docs are research with no answer at the end.

The MKT1 Guide to Positioning

From MKT1 Newsletter by Emily Kramer 20 min read

  • Most teams overdo the research and never produce the actual answer, the positioning statement itself.
  • Positioning fills three blanks: who is it for, what is it, why is it better.
  • Nearly every B2B product fits one of four positioning types: 10x better, new way, vertical solution, or buy vs build.
  • If you are selling a new way, early competitors usually help you grow the category rather than steal from you.
Open newsletter.mkt1.co
📄 Article
✓ Link checked Free Intermediate

Makes the distinction between competitors and competitive alternatives, and points out that the status quo wins roughly one deal in four. That reframe changes which comparison you should actually be fighting.

Positioning and Competition

From aprildunford.com by April Dunford 8 min read

  • Your main competitive alternative is usually the status quo (spreadsheets, manual work), not a rival product.
  • Enterprises lose roughly 20 to 30 percent of deals to no decision, so the status quo is the competitor to beat.
  • Ignore phantom competitors that never actually appear on a buyer's shortlist, they only dilute your story.
  • The common mistake is defining competition either too narrowly (lookalike products) or too broadly (everything).
Open aprildunford.com
🎧 Podcast
✓ Link checked India Free Intermediate

This is the Freshworks story from the founder himself, including how serving the customers Zendesk handled badly became a real business out of Chennai. If your competitor is bigger and better funded, listen to how he chose which fights to pick and which to skip.

Girish Mathrubootham: Biggest Product and Pricing Lessons from Scaling to $597M in ARR | E1142

On 20VC with Harry Stebbings by Girish Mathrubootham 53 min

Watch on YouTube youtube.com

Browse all 796 resources →

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