Mike Maples Jr. explains how Category Kings like Starbucks, Amazon Web Services, and Apple redefine markets by creating entirely new categories rather than competing in existing ones. The best founders don't fight for share in crowded spaces; they invent the space itself.
Category kings, they don't just make something to sell to people. They introduce the world to a new category of product or service. Category kings, they replace our point of view from what we understood yesterday to what we now believe. And ultimately they change how people and businesses spend money. Here are some examples. When I was a kid, people didn't pay multiple dollars for a cup of coffee. But Starbucks convinced me and a whole bunch of people to rethink our spending habits as it related to coffee. Amazon web Services, right? Not just a service, a whole new category. There weren't any digital music players that would play thousands of songs in your pocket before the original ipod. In fact, I I would argue that Jobs great genius in his second act was he invented three new categories. The digital music player, the smartphone and the tablet. This is an example. I kind of like Elvis. So Elvis changed our point of view from jazz on steroids to rock and roll. So Elvis defined the category of rock and roll. Category Kings usually capture 70 to 80% of the profit pool in a given market. These guys I think are doing some really interesting work. Playbigger.com, christopher Lockhead, Al Ramadan, Dan have been friends for a long time. They're going to come out with a book pretty soon that talks about category design. But I think their website does a good job of talking about some of these issues. I believe that category design is going to become an increasingly prevalent topic in how people think about building value in their startups.
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