Peter Thiel, co-founder of PayPal, identifies seven keys to market-creating innovation. Firstly, he suggests that successful businesses must start small and monopolise. They should target a small market and dominate it quickly. Secondly, scaling too fast can lead to failure. It’s more important to have a solid plan and strategy than to grow rapidly.
The third key is that the last mover advantage is often more significant than the first. A business should focus on improving and perfecting a product that already exists rather than being the first to market. Fourthly, Thiel proposes that sales are as important as product development. A great product with poor sales will struggle to succeed.
The fifth point is that technology and business model should be aligned. A breakthrough in technology needs a breakthrough in the way it’s sold. The sixth key is that businesses should not be overly disrupted by competition. A unique product or service can avoid competition altogether.
Finally, Thiel argues that luck plays a smaller role in success than people think. It’s more about making the right decisions and executing them well. These seven keys provide a roadmap to market-creating innovation, according to Thiel.
Go to source article: http://www.forbes.com/sites/stevedenning/2014/10/15/peter-thiel-seven-surprising-keys-to-market-creating-innovation/