To play bigger, don't just improve what's already there—create something entirely new and own the category.
1. Think Like a Category King
Becoming a category king involves identifying and solving problems others haven’t noticed yet. This requires visionary thinking and the ability to redefine markets. It’s not just about improving what’s out there; it’s about asking bold “what if” questions that can change lives.
For example, before Uber, the taxi industry operated in much the same way for decades. Uber saw an opportunity by addressing frustrations people didn’t realize had solutions—like guessing fares or frantically trying to hail a cab.
Creating new categories transforms ordinary products and services into essentials. Over time, people question how they ever lived without them. Category kings inspire this shift by showing not just the solution but also the hidden problem.
Examples
- Ford’s Model T made people reconsider how they approached personal transportation.
- Uber didn’t just offer convenience; it shed light on the inefficiencies of traditional taxi systems.
- Apple's iPad defined what a tablet could be, moving far beyond Microsoft’s initial attempt.
2. Timing Is Everything
Innovative ideas take time to gain traction. Consumers can resist new categories because of long-standing biases or habits. It may take years for people to adopt a new way of thinking, so companies must have patience.
Neuroscience shows that replacing deeply ingrained ideas can take 6-10 years. This is why even groundbreaking innovations like the automobile initially struggled against perceptions of safety and practicality.
Understanding customer needs at the right time is also key. Bill Gates’ Tablet PC failed because it misread what users wanted—a tablet as a PC replacement. Years later, Steve Jobs succeeded with the iPad by focusing on what consumers truly needed, like web browsing and media consumption.
Examples
- Steve Jobs’ iPad succeeded because it focused on user experience, not just technology.
- Salesforce took years to be accepted, but its ability to connect clients and customers proved its worth.
- The Ford Model T faced hesitancy until people saw its practicality for everyday life.
3. Market Insights Are Gold
Discovering market gaps often starts with understanding it deeply. Market insight helps entrepreneurs see needs others miss, sometimes opening up entirely new opportunities.
Les Paul created the electric guitar to solve a simple problem—his instrument being drowned out while performing. This random comment from an observer led him to a transformative invention, thanks to his deep market knowledge.
Alternatively, technology insight can arise without market awareness. VMware, for instance, created virtual computers but didn’t initially know what problems it could solve. Research revealed its applications for testing software, which proved invaluable for companies.
Examples
- Les Paul’s electric guitar arose from a street-side observation about volume.
- VMware’s virtual computing innovation found purpose through research on software testing.
- Post-its were invented from a failed adhesive but later discovered for office solutions.
4. Share Your Vision Through Stories
Stories resonate deeply with people and can transform how they perceive problems and solutions. A company’s narrative isn’t just fluff; it’s how potential customers understand the value it brings.
According to research, stories connect with our brains emotionally, thanks to oxytocin. This connection boosts understanding, morale, and even cooperation, making them a powerful tool for businesses.
Coverity, a software company, uses the powerful imagery of keeping airplanes in the sky safely to explain their mission. Their story turns a technical service—finding bugs in code—into a vital task tied to people’s safety.
Examples
- Coverity explains how their technology ensures flight safety by debugging millions of software code lines.
- Steve Jobs’ presentations made Apple products feel like essential parts of a modern lifestyle.
- TOMS Shoes’ “one-for-one” story captured customer empathy and loyalty.
5. The Long Game of Patience
Creating and nurturing a new market category takes time and persistence. Growth doesn’t happen overnight; it’s a process that requires understanding customer pain points and patiently educating the market.
Many innovative ideas, like cloud computing, faced skepticism before becoming mainstream. The secret to survival lies in perseverance and staying focused on the solution you’re building.
Patience also involves learning from initial failures. Early missteps can refine your approach, making your product or service even stronger over time.
Examples
- Amazon Web Services grew slowly, focusing on showing long-term benefits of cloud computing.
- Ford waited years for middle-class consumers to adopt automobiles.
- Tesla spent decades normalizing electric cars before becoming profitable.
6. Create a Lightning Strike
When introducing a new category, grab attention with an impactful reveal—like a “lightning strike.” This approach ensures that consumers, stakeholders, and competitors take notice.
Sensity executed this concept brilliantly during an industry event in 2003. Their revelation about digitized light fixtures left a lasting impact on the LED lighting world, helping define a new category called the Light Sensory Network.
Timing your strike strategically involves targeting the right market, as Sensity did with the lighting industry instead of broader sensor technologies. A focused approach makes your splash more powerful.
Examples
- Sensity showcased innovation at a key lighting industry event.
- Tesla’s high-profile unveilings generate media buzz and consumer anticipation.
- Apple's product launches feel like global events, capturing attention each time.
7. Build a Unified Team
Behind every market-defining category is a team that aligns with the company’s vision. Your team needs to understand not only the "what" but also the "why" of your company’s direction.
Creating a strong shared perspective—what the book calls a "point of view"—ensures that everyone from leadership to employees is working toward the same goals. Internal consistency creates external clarity.
You can also bring in fresh perspectives. External consultants or advisers often provide objective insights and guide teams toward success.
Examples
- Apple's team culture relied on Steve Jobs’ consistent vision to design user-friendly products.
- Google fosters innovation by encouraging team alignment with their mission to “organize the world’s information.”
- Sensity’s alignment around its category enabled its lightning strike to generate major industry interest.
8. Solve Hidden Problems First
Successful products solve problems people don’t realize they have. Before category kings come along, these problems often hide in plain sight.
For example, smartphones solved multiple inconveniences related to cameras, music players, and basic communication. People hadn’t asked for an all-in-one device, but once introduced, their appeal was undeniable.
Successful products often lead consumers to question how they lived without them. This process requires understanding the root of a problem, not just its symptoms.
Examples
- Spotify resolved the need for convenient, legal music streaming even before piracy was fully tackled.
- Lyft and Uber avoided many issues linked to taxi services by offering accurate fare estimates.
- Netflix changed how we consume media by eliminating traditional rental pain points.
9. Market Gaps Are Everywhere
Often, great ideas start from recognizing a gap in the market. This requires keeping your eyes open for opportunities in surprising places.
Many products and services are born not from structured brainstorming but from casual observations. The electric guitar, Post-its, and even Velcro all followed this pattern. The next big opportunity might be hiding in plain sight.
If you want to find gaps intentionally, though, studying market trends and consumer pain points can reveal where innovations are overdue.
Examples
- Walmart introduced low-cost retail centers after noticing underserved rural markets.
- Airbnb saw potential in homes sitting empty as an accommodation resource.
- Slack improved workplace communication after identifying inefficiencies with emails.
Takeaways
- Focus on both problems and solutions: Spend time understanding hidden problems, then craft solutions that redefine customer experiences.
- Master the art of timing: Be patient and ready to educate your audience about new concepts, even if adoption is slow at first.
- Narrate your POV: Use storytelling to connect emotionally with both customers and employees, creating alignment and loyalty.