Instead of copying what top competitors do well, analyze what they do poorly or neglect. Excelling in those specific areas creates a powerful differentiator. This is how Eleven Madison Park focused on rivals' bad coffee service to become the world's #1 restaurant.

Conventional wisdom suggests attacking an incumbent's weak points. Serval did the opposite with ServiceNow, targeting its core strength: configurability. By using AI to make customization drastically faster and easier, they offered a superior version of the feature that locks customers in, creating a compelling reason to switch.

The founder of restaurant 11 Madison Park used "reverse benchmarking" by analyzing competitors not for their strengths, but for their weaknesses. Identifying and perfecting an overlooked detail, like their rival's merely average coffee service, created their competitive edge.

Startups often fail by making a slightly better version of an incumbent's product. This is a losing strategy because the incumbent can easily adapt. The key is to build something so fundamentally different in structure that competitors have a very hard time copying it, ensuring a durable advantage.

Home Depot succeeded by "counter-positioning" against incumbents like Sears. Their high-volume, low-price model was so different that if Sears tried to adopt it, they would have damaged their existing high-margin business. This strategic dilemma paralyzed competitors, allowing Home Depot to capture the market.

When competing against a large incumbent, reframe the comparison away from company vs. company. Instead, frame it as you—the dedicated founder—versus their salaried, indifferent employee. This shifts the focus from resources to personal commitment, turning your small size into an advantage.

Instead of matching rivals' strengths, identify their weaknesses or overlooked details, like a poor coffee program. Focusing on these neglected areas allows you to create a unique, best-in-class experience and gain a competitive foothold. Guidara's team calls this 'reverse benchmarking.'

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.

Effective marketing involves positioning against competitors. Identify an incumbent's core value proposition (like Brex's rewards points) and frame it as a negative. Ramp successfully did this by arguing points are wasteful, repositioning their own lack of points as a focus on software and savings.