The dominant card grader, PSA, is slow, expensive, and opaque. A competitor could win by building a brand around transparency and entertainment. A live-streamed grading process, like an "Antiques Roadshow for cards," creates engaging content, builds trust, and establishes a David-vs-Goliath narrative.
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.
Founder Eric Ryan targets categories where competitors make products unnecessarily complex or take themselves too seriously. He views this as a sign of insecurity hiding a lack of real innovation. His strategy is to simplify the product and bring a playful, more human approach to the branding.
When leadership resists a modern, low-budget content approach, use social proof as leverage. Find examples of competitors succeeding with this exact strategy (e.g., TikToks, lo-fi videos). Presenting this evidence creates social pressure and a sense of urgency that is often more persuasive than a theoretical pitch.
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.
There is a repeatable business model in the success of vinyl record valuation apps. Target a niche collectible market (e.g., comic books, vintage toys), and build a simple app that lets users scan an item to learn its identity, condition, and market value.
When technology is no longer a differentiator, as seen in the crowdfunding space, a company's brand, positioning, and core values are the only way to stand out and attract customers. GiveForward succeeded by positioning itself around compassion and joy.
As technology automates tasks and large firms optimize financials, the one thing they cannot easily replicate is a genuine, resonant brand. This emotional connection becomes the key competitive advantage for smaller players, allowing them to "upset" larger, better-funded competitors.
While live shopping in China is a mass-market channel for everyday items, its US success, shown by Whatnot's decacorn valuation, stems from targeting niche, high-passion communities like trading card and sports memorabilia collectors.
A major cost in card grading is two-way shipping and manual inspection. A disruptive model would allow users to submit high-resolution scans via a proprietary app. AI could perform the initial grade, and the company would only ship the final, high-quality display slab, cutting costs and turnaround time.