Consider Post-PMF before PMF

Consider Post-PMF before PMF

A Brand is a promise. The key factor is that the post-PMF strategy can’t be easily implemented once we start expanding the business. Most of the cases if the PMF is proven, sooner or later, competitors emerge and fight with each other. In this war, we need to build strong defensibility against others so that we can run the business more safely. Evolution of technologies is very fast to be commoditized, especially in IT or software industries including AI, IoT, and Blockchain. If the competition happens, prices cannot be maintained. the “proprietary technology” is 10x performance improvement over the closest substitute. If the technology itself cannot stand out, it’s a good alternative to think about the 10x improvement in UX. It would be a great alternative if the companies can embed the technology to a deep level of a users’ lives, or business operations.

1 Proprietary Technology

One way to build strong defensibility against competitors is by having proprietary technology. This means having a technology that provides a significant performance improvement over the closest substitute in the market. By having a unique and superior technology, companies can differentiate themselves from competitors and maintain their prices even in the face of competition. It is important for companies to invest in research and development to continuously improve their technology and stay ahead of the competition.

2 Network Effects

Another way to build defensibility is by leveraging network effects. Network effects occur when the value of a product or service increases as more people use it. Companies that can create strong network effects have a competitive advantage because it becomes harder for new entrants to attract users and compete with the established player. Companies can create network effects by building platforms or ecosystems where users can interact and benefit from each other's presence. Examples of companies that have successfully leveraged network effects include social media platforms like Facebook and messaging apps like WhatsApp.

3 Economies of Scale

Economies of scale can also provide a strong barrier to entry for competitors. Companies that can achieve economies of scale can produce goods or services at a lower cost per unit, giving them a competitive advantage in terms of pricing and profitability. Economies of scale can be achieved through various means such as increasing production volume, optimizing supply chains, or leveraging technology to automate processes. By achieving economies of scale, companies can offer competitive prices to customers while maintaining healthy profit margins.

4 Build a strong brand

Building a strong brand is essential for long-term success and defensibility. A strong brand can create customer loyalty and make it harder for competitors to attract customers away. Companies can build a strong brand by delivering exceptional customer experiences, having a clear and compelling brand story, and consistently delivering on their brand promise. It is important for companies to invest in branding and marketing efforts to build awareness and trust among their target customers.

In conclusion, it is crucial for companies to consider their post-product-market fit (PMF) strategy before they even achieve PMF. By focusing on building strong defensibility through proprietary technology, leveraging network effects, achieving economies of scale, and building a strong brand, companies can position themselves for long-term success and protect their business from competition. It is important for companies to continuously innovate, invest in research and development, and stay customer-focused to maintain their competitive advantage in today's fast-paced and competitive business landscape.

Actionable advice:

1. Invest in research and development to continuously improve your technology and stay ahead of the competition. Look for ways to achieve a 10x performance improvement over the closest substitute.

2. Build a platform or ecosystem that leverages network effects to create a strong barrier to entry for competitors. Encourage user interaction and create value for users that increases as more people join the platform.

3. Focus on building a strong brand by delivering exceptional customer experiences, having a clear brand story, and consistently delivering on your brand promise. Invest in branding and marketing efforts to build awareness and trust among your target customers.