Since time immemorial a post mortem of a failed company usually includes, “I don’t understand what happened. We did everything that worked in our last startup.” The failure isn’t due to lack of energy, effort or passion. It may simply be due to not understanding that there are four types of startups, and each of them have a very different set of requirements to succeed:

* Startups that are [[Entering an existing market]]
* Startups that are [[Creating an entirely new market]]
* Startups that want to [[Resegment an existing market as a low cost entrant]]
* Startups that want to [[Resegment an existing market as a niche player]]

||Existing market|Resegmented markets|New market|h
|''Customers''|Existing|Existing|New/New usage|
|''Customer Needs''|Performance|1. Cost|Simplicity & convenience|
|||2. Perceived need||
|''Performance''|Better/faster|1. Good enough at the low end|Low in “traditional attributes”,|
|||2. Good enough for new niche|improved by new customer metrics|
|''Competition''|Existing|Existing incumbents|Non-consumption /other startups|
|''Risks''|Existing incumbents|1. Existing incumbents|Market adoption|
||Incumbents|2. Niche strategy fails|

Part of book: [[The Four Steps to the Epiphany]]
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mbi_public
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Sun, 14 Nov 2010 15:37:29 GMT
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dirkjan
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Sun, 14 Nov 2010 15:37:29 GMT
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dirkjan
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dirkjan