<aside> 💡 Why it's not the best product that wins, but the one that touches the most people
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You might think that the best product wins, right? That’s what most of us would like to believe. After all, if you put in the hard work, pour your soul into crafting the most innovative, efficient, and user-friendly technology, you should reap the rewards. But here’s the kicker: in the real world, the best product doesn’t always win. Instead, it’s the product that touches the most people, grabs the most attention, and gets adopted by the masses that ends up dominating the market. And all of this boils down to one simple truth: distribution is everything.
Let's face it: having the most revolutionary product doesn't guarantee its widespread adoption. Think about it: how many times have you seen a game-changing tech emerge only to fade into obscurity? It's not because it was bad – it's simply because it didn't connect with enough people.
Microsoft Palm Pilot, March 1996
This article goes into the complex technical market dynamics of how well a company distributes its technology, increasing it’s chances of adoption. We'll explore network effects, distribution, and the minority rule, using real-world examples to illustrate these concepts. By the end of this article, you should have a deeper understanding of why it's not just about creating the best product that wins, but about touching the most people.
When a product or technology gains traction, it creates a snowball effect that draws in more users, enthusiasts, and even investors. This is known as network effects, where the value of a product increases exponentially as more people adopt it. Suddenly, you have a critical mass of support from both your community and the main company behind it – giving them more resources to fuel further growth.
This phenomenon creates an irresistible force that makes people feel good about sharing their enthusiasm with others. Imagine being part of a movement where everyone's on board – it's infectious! The flip side, however, is that if passion wanes due to lack of shared interest, the product will struggle to maintain momentum.
<aside> 🧂 How a small group can make a big impact
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There's another important phenomenon at play here: the minority rule. This concept illustrates how a small group with strong convictions can influence the majority's behavior, even if they represent only a tiny fraction of the population.
Take kosher food, for instance. In the United States, while less than 0.3% of the population adheres to kosher dietary restrictions, these individuals are evenly distributed across the country. This means that most food manufacturers opt for kosher certification, as it's easier to produce one type of product rather than two separate ones.
In this scenario, the minority group (those who only eat kosher food) exerts significant influence on the majority, shaping the market in their favor.
Another one relating to cars with manual transmission vs automatic: When some family members cannot drive stick, the majority will opt for an automatic car, making it the default choice.
Find a way for your product to be indispensable for a group of people. Make sure these people absolutely love your product and they can’t live without it.
The blockchain technology has seen incredible growth due to its inherent ability to self-distribute across geographies and cultures. This decentralized nature allows it to tap into the collective potential of a global community, making it more resilient and adaptable in the face of challenges.