The Audacity of Copying Well: Insights from Successful Companies

The Audacity of Copying Well: Insights from Successful Companies

Most successful companies, such as Apple and Google, have a remarkable ability to ignore naysayers and focus on doing what is right for their company. However, the ultimate constraint for any company is the attention of the end user. To succeed, a product must fulfill the users' needs and desires.

One example of a company that understood this concept is Instagram. Instagram capitalized on the opportunity to allow users to showcase the best version of themselves through photos and videos. The feedback loop of likes provided validation and encouragement to users. On the other hand, Snapchat took a different approach by emphasizing ephemerality, giving users the freedom to be themselves without the fear of judgment. While both platforms offered similar features, they served different purposes, making them complementary rather than direct competitors.

When incumbents face threats from new competitors, their first mistake is often trying to win by adding more features. This approach fails because category-defining products already get many aspects of the user experience right from the start. The features that are imperfect eventually become the standard, simply because users get used to them.

Instead of focusing on features, successful companies find other ways to differentiate themselves. For example, Google may have borrowed the iPhone's user interface for Android, but its key differentiator was its ability to offer the platform for free, thanks to its advertising-based business model. Microsoft also leveraged web standards with Internet Explorer and added features like ActiveX to outpace Netscape.

Copying another product is not enough to succeed. Companies need to identify what makes a format or concept successful and determine if it can be applied to their own network or platform. Instagram Stories, for instance, successfully eliminated the motivation for Instagram users to try out Snapchat. The existing network effect of friends already on Instagram made it difficult for users to switch to a new platform.

Scaling a company requires more than just technology and deployments. It is about enabling people to work together effectively. Hiring the right people is crucial. Stripe, for example, took a long time to hire its first few employees, but it was worth the wait to find great talent. The company also prioritized listening to customers with good judgement, as they often provide valuable insights. However, innovation also requires thinking beyond customer requests and addressing needs that are not yet being asked for.

As a company grows, communication becomes a challenge. Formal and explicit communication becomes necessary, particularly through written channels. Writing allows for clarity, revision, and persistence over time. The CEO's role is to focus on strategy, culture, and selecting the right senior management team. The CEO can also lead specific functions of the product or be the head of product, but these roles are optional.

In conclusion, successful companies understand the importance of meeting the needs and desires of their users. They differentiate themselves not just through features, but by finding unique ways to leverage their strengths. They also prioritize hiring the right people and fostering effective communication within the organization. To succeed, companies must be willing to think beyond what is currently being asked for and have the audacity to copy well.

Actionable Advice:

1. Focus on fulfilling the needs and desires of your users. Understand what they want to do and ensure your product helps them achieve that.
2. Instead of trying to win on features, find other ways to differentiate your product or platform. Consider leveraging your unique strengths or business model.
3. Hire the right people and be persistent in your search. Take the time to find great talent that aligns with your company's vision and culture.