EP #48 - Michael Friedrich: How To Successfully Handle Competition

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”.