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EP #48 - Michael Friedrich: How To Successfully Handle Competition
Michael Friedrich
December 5, 2019
Timestamps:
0:33 – What mistakes do Swiss founders repeatedly make when it comes to competition?
15:54 – How to succeed in a tough competitor situation
20:00 – Getting Switzerland on the American investor map
29:03 – Two types of customers
40:46 – Knowing when to get out
The Episode In 60 Seconds
Know your competitive landscape
- Keep in mind that most tech products compete on a global scale
- Take a holistic view: the same needs can be met with different approaches. They are still your competitors.
- Be aware when you are switching from up-start to incumbent and when it’s time to scan for acquisition targets yourself.
Why companies acquire other companies
- To create synergies with, expand, improve, etc. their existing business.
- To protect their existing business from competition.
- The latter tends to be a stronger driver than the former.
How to approach competitors
- Approach the CEO, even if it is a much larger company.
- Demonstrate how you will be a threat to their existing business.
- Be aware that your competitor may be facing internal resistance against an approach which was “not invented here”.
