Platform Shifts Create Giants
Taylor: I'm a big believer in platform shifts as drivers of economic value. When the internet was invented, companies that are now some of the biggest in the world came to be — Amazon and Google. When the PC was invented, companies like Microsoft and Apple became very meaningful companies built around that new platform.
Looking for fundamental underlying shifts in platforms is a very fruitful place to start. When this platform exists, what habits will change?
When the internet was invented, Amazon and Google came to be. Platform shifts are the biggest drivers of economic value.
Why It Changes the Balance of Power
Taylor: Platform shifts change the balance of power between incumbents and startups. It's very hard to compete with Microsoft on PCs because they owned the entire stack.
In the age of the smartphone, it was a completely different story. They don't control the operating system. They don't control the hardware. All of a sudden you're on slightly more equal footing with these very powerful incumbents. Your agility as a startup and your native understanding of the platform can outweigh their strength in finance and employees.
Your agility as a startup and your native understanding of the platform can outweigh their strength in finance and employees.
The Rising Tide
Taylor: As a startup, when you're thinking about ideas, going to the rising tide that will lift your boat is a good starting point. It's a very broad direction, but I think people often choose a niche and don't think through — why will this startup succeed versus these incumbents?
It's really important to think about that strategically.
People often choose a niche and don't think through: why will this startup succeed versus these incumbents?