Japan's manga industry's success stems from a deliberate strategy to stay focused on young readers. In contrast, the US comic market aged up with its audience, losing its pipeline of new fans and guaranteeing long-term decline. This applies to any industry.
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Many see Japan as a value play. The real opportunity is its high number of quality companies (250+ with >40% gross margins) that were historically mismanaged. Ongoing governance reforms are now unlocking the potential of these high-margin franchises.
Established industries often operate like cartels with unwritten rules, such as avoiding aggressive marketing. New entrants gain a significant edge by deliberately violating these norms, forcing incumbents to react to a game they don't want to play. This creates differentiation beyond the core product or service.
Businesses with passionate but niche audiences, like the UFC or F1, can break into the mainstream by producing "on-ramp" content. A human-interest show (like F1's "Drive to Survive") provides an accessible entry point for new fans, demystifying the niche and driving massive growth by solving the discovery problem.
Intense competition forces companies to innovate their products and marketing more aggressively. This rivalry validates the market's potential, accelerates its growth, and ultimately benefits the entire ecosystem and its customers, rather than being a purely zero-sum game.
"Culture" is often used too broadly. Brands should focus on "Little C" culture by tapping into existing pillars like music or sports. "Big C" culture—macro societal shifts—is a rare feat achievable only by platform-level brands like TikTok.
The biggest growth driver is mastering platforms where attention is currently underpriced. Businesses often fail by romanticizing past tactics or obsessing over future trends like the metaverse, completely missing the massive, free opportunity available in the present.
The value of a large, pre-existing audience is decreasing. Powerful platform algorithms are becoming so effective at identifying and distributing high-quality content that a new creator with great material can get significant reach without an established following. This levels the playing field and reduces the incumbent advantage.
For 20 years, Netflix's identity was built on 'no ads, no live sports, and no big acquisitions.' Its recent reversal on all these fronts to maintain market dominance shows that adapting to new realities is more critical for long-term success than rigidly adhering to foundational principles.
The belief that you must find an untapped, 'blue ocean' market is a fallacy. In a connected world, every opportunity is visible and becomes saturated quickly. Instead of looking for a secret angle, focus on self-awareness and superior execution within an existing market.