The Manager's Handbook

22A Vow to Wow

Do what you do so well that they will want to see it again and bring their friends.

—Walt Disney

Harvard's Michael Porter was first to point out that business is not a winner‐take‐all endeavor. In most industries, multiple competitors are succeeding in different markets. This explains how Toyota and Tesla have both won in the electric vehicle market. Each offer high‐quality products and serve consumers who care about the carbon emissions. Yet they sell to customers who define quality differently. Both succeed by avoiding being all things to all customers.

Today the flow of information is close to instantaneous. Competitors can match your price with a keystroke, use social network platforms to hire away your stars, and source raw materials anywhere from Tennessee to Tasmania. Through remote work, upstarts can access a global workforce. Which means that today it's nearly impossible to craft a sustainable competitive advantage by competing head‐to‐head with everyone in the marketplace. Winning requires carefully identifying a customer segment that has unique definitions of quality and then meeting those needs with a vow to wow.

Find a Corner of the Market

This is where small and midsized companies have an enormous advantage. Let me explain, again with an example. Today, there is a small but flourishing market for independent bookstores. After a contraction from the one‐two‐three punch of big box retailers like Barnes & Noble, the entrance of Amazon, and new ...