YC
How To Compete With Amazon and Google
@ Y Combinator
04/09/22
Takeaways
MS
Michael Seibel
04/09/22
@ Y Combinator
As Y Combinator partners, we often see founders become overly focused on their competitors, which can lead to fear overshadowing their excitement for their own company.
MS
Michael Seibel
04/09/22
@ Y Combinator
Founders often psych themselves out by worrying about competitors, especially when they see a competitor raise significant funding, leading them to feel like they are failing.
BF
Brad Flora
04/09/22
@ Y Combinator
It's a dangerous mindset for founders to think they must beat their competitors to succeed, which distracts them from focusing on their own customers and product development.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Many founders fail to recognize that most startups, including their competitors, are likely to struggle, and that the common outcome is that many will not succeed.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
In many industries, there can be multiple successful companies, and competition does not mean that one must fail simply because another exists.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Founders often assume their competitors are winning based on external signs like fundraising announcements, but they should focus on whether their customers are satisfied and engaged.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
When I was at Twitch, we often copied features from competitors, but sometimes we realized that those features had no real value, highlighting the pitfalls of blindly following competitors. The company only started working when Emmett and Kevin began talking to users to understand their needs, rather than just copying competitors' features.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Founders often focus too much on negativity surrounding competitors instead of addressing their own growth metrics and customer retention.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
When founders claim they have no competitors, it's a red flag indicating a lack of understanding of the market and customer needs.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Sometimes competitors have objectively better products, which can lead to founders losing users to those alternatives.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Structural advantages can be a significant concern; for example, when Google Calendar launched, it crushed a competing calendar startup.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
When Facebook announced custom audiences, it became a direct competitor to my company, Perfect Audience, which was a major concern.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Microsoft Teams, while not as good as Slack, leveraged its sales distribution advantage to compete effectively in the enterprise market.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
A structural advantage with a subpar product won't win; however, a good enough product can succeed if it has a structural advantage.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Instacart faced skepticism about competing with Amazon, but it turned out that Amazon struggled with specific challenges like selecting the right produce.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Founders should focus on building a better product rather than worrying excessively about competitors; delivering more value to users is key.
YC
Y Combinator Cast
04/09/22
@ Y Combinator
Stay informed about competitors but don't let their actions demoralize you; focus on creating a superior product for your users.