Ari Emanuel compares agents to cockroaches not as pests, but as ultimate survivors. His firm thrived by constantly adapting its services to new platforms like podcasts and social media, long after competitors failed. This relentless evolution is essential for any service business to avoid being disintermediated by technology.

Related Insights

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.

The fundamental goal is to become a "better competitive alternative" for a specific customer—being so superior that they bypass competitors to choose you. Achieving this state is the business equivalent of the house advantage in a casino (“the house vig”) and the only reliable way to build a lasting enterprise.

When civil war made the government an unsuitable partner, an NGO successfully pivoted by collaborating with the church—the community's new trusted institution. In a tech disruption, companies must similarly identify and partner with new entities that hold customer trust.

When competing against a resourceful incumbent, a startup's key advantage is speed. Bizzabo outmaneuvered its rival during the pandemic by launching a virtual solution in weeks, not months. This agility allows challenger brands to seize market shifts that larger players are too slow to address.

In today's volatile market, speed and agility have replaced sheer size as the primary competitive advantage. As stated by Rupert Murdoch, it's 'the fast beating the slow.' Startups often win by rapidly responding to customer needs, allowing them to outmaneuver slower, larger incumbents.

Simply "servicing" an account by fulfilling orders makes you a replaceable commodity. To become indispensable, you must proactively bring insights and create new growth opportunities for your client. This shifts your role from a reactive vendor to a strategic partner, making you "sticky" and invaluable to their business.

In the age of AI, 10-15 year old SaaS companies face an existential crisis. To stay relevant, they must be willing to make radical changes to culture and product, even if it threatens existing revenue. The alternative is becoming a legacy player as nimbler startups capture the market.

In a rapidly evolving market, the speed at which you can discard outdated strategies and adopt new ones is more critical than simply accumulating new knowledge. Professionals who can let go of 'what has always worked' will adapt and win faster than those who cling to legacy methods.

To lead in the age of AI, it's not enough to use new tools; you must intentionally disrupt your own effective habits. Force yourself to build, write, and communicate in new ways to truly understand the paradigm shift, even when your old methods still work well.

New technology like AI doesn't automatically displace incumbents. Established players like DoorDash and Google successfully defend their turf by leveraging deep-rooted network effects (e.g., restaurant relationships, user habits). They can adopt or build competing tech, while challengers struggle to replicate the established ecosystem.

Service Firms Must Act Like "Cockroaches" to Survive Disruption | RiffOn