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If you're a foundational platform, you will inevitably compete with customers building on top of you. Address this transparently by informing them of your product roadmap. A large market allows for 'coopetition' where you can partner, compete, and sell to each other simultaneously in a healthy ecosystem.

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OpenAI embraces the 'platform paradox' by selling API access to startups that compete directly with its own apps like ChatGPT. The strategy is to foster a broad ecosystem, believing that enabling competitors is necessary to avoid losing the platform race entirely.

A platform's immediate user is the developer. However, to demonstrate true value, you must also understand and solve for the developer's end customer. This "two-hop" thinking is essential for connecting platform work to tangible business outcomes, not just internal technical improvements.

When launching into a competitive space, first build the table-stakes features to achieve parity. Then, develop at least one "binary differentiator"—a unique, compelling capability that solves a major pain point your competitors don't, making the choice clear for customers.

Facing intense competition post-COVID, Zoom's strategy is to ensure its platform is open and integrates with competitors like Google and Microsoft. This acknowledges that enterprise customers don't want to be locked into a single vendor's suite, making openness a competitive advantage.

Large enterprises don't buy point solutions; they invest in a long-term platform vision. To succeed, build an extensible platform from day one, but lead with a specific, high-value use case as the entry point. This foundational architecture cannot be retrofitted later.

When co-selling, ISVs should understand that Microsoft's primary goal is platform adoption. For Microsoft's sales reps, the key is ensuring the solution runs on Azure, making it a platform win, even if Microsoft has a competing first-party product. This mindset is crucial for navigating competitive overlap.

Being a vendor just solves today's problems. To become a true strategic partner, you must understand a customer's long-term business goals and explicitly connect your product roadmap to their future success. This is critical for enterprise retention and moving up-market.

To balance platform and partner needs, think of your product as a mall. The mall provides a managed, curated discovery experience. But once a customer enters a specific "store" (a merchant's page), the merchant controls the environment completely, preventing cross-promotion of competitors.

Smaller software companies can't compete with giants like Salesforce or Adobe on an all-in-one basis. They must strategically embrace interoperability and multi-cloud models as a key differentiator. This appeals to customers seeking flexibility and avoiding lock-in to a single vendor's ecosystem.

While ignoring competitors is naive, constantly reacting to their every move is a crutch for founders who lack a strong, opinionated vision for their own product. Healthy balance involves strategic awareness without sacrificing your own roadmap.

Foundational Platforms Must Proactively Tell Customers They Are Going to Compete | RiffOn