Aaron Levie, My First Million
Pick The Market With The Unattractive Business Model
Target business models incumbents find unattractive, since they will not compete there.
Aaron Levie says
The key question from Innovator's Dilemma is whether a business model is attractive or unattractive to the incumbent. If it is attractive, you have to assume the incumbent is going to try and compete with you. If it's unattractive, they won't pursue it, which tells you where you have a shot as a new startup. There were a lot of incumbents that didn't want to move infrastructure to the cloud because instead of having like 10,000 customers, they would only have like three or four customers, a totally different business model.
Try this
Before entering a market, ask whether the business model would be attractive or unattractive to the dominant incumbents, and target where it is unattractive to them.
