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Conducting market research
Analyzing data to make informed decisions
Developing a product roadmap
New use cases: designing for digital
Startups can take advantage of market entropy. Changing customer needs are the biggest source of entropy in markets. When the customer needs change quickly, legacy companies are left with all the overhead and product that no longer serves the market.
There are many causes of changing customer needs.
- There are new and growing segments of customers with different use cases. However, companies may resist changing the core parts of their product.
- The scale or dynamics of a market shift enough to make a product obsolete.
- The type of user change. These new types of customers care about different things.
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MORE IDEAS ON THIS
Defensibility through becoming a platform
As Canva grew, it expanded its ecosystem by creating marketplaces and communities around templates, layouts, fonts, and more. Users prefer not to build from scratch, and instead support free and paid Canva marketplaces of pre-built components.
The add-ons are very powerful. They allow Canva...
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41 reads
Extending this playbook to other spaces
Design is not unique. The same factors that drive demand for new and large use cases are arriving in most fields, especially in all forms of digital content.
The most active area undergoing this market transition now is the broader productivity space. Companies like Airtable, Notion, Coda, ...
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38 reads
Figma bet on collaborative product design
When Figma started, it was a direct Photoshop competitor. But, over the next two years, they shifted their focus to designers working on the UI and UX of digital products.
The key for designers was a product that enabled collaboration. Building for collaboration led Figma t...
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53 reads
Tapping into the right level of abstraction
The best products map to how customers think about their workflow. They choose the right atomic concepts around which the entire product is built. They align with how customers think of their workflow and crystalise how they ought to. Great atomic concepts are refined and...
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59 reads
Canva bet on marketing design by non-designers
Photoshop can do many things, but it is too low level. Photoshop's atomic concepts are images and pixels.
But Canva operates at a higher abstraction level and one that users care about. Canva designs start with their purposes in mind, such as designing a pitch deck, an Instagram post, or a ...
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51 reads
Opportunity knocks
Companies with early success have yet to define what atomic concepts they focus on. Who are their competitors? Who are their customers, and which use cases should they build their workflows around?
Companies have difficulty navigating these questions because customers don't know wha...
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45 reads
Figma and Canva are taking on Adobe
In 2010, Photoshop was commonly used for everything design from editing a photo, making a poster or designing a website. Today, Adobe still seems very strong, they have great stock performance and their transitions to SaaS has been seamless.
Yet, they are no longer the market leader...
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132 reads
Why young companies are able to thrive
Companies like Figma and Canva are able to thrive against a strong incumbent like Adobe because they have a distinct atomic concept. Their products are built around a different strategy than Adobe's product lineup.
These different fundamental atomic concepts turn Adobe's a...
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92 reads
Related collections
More like this
What Is Jobs To Be Done Theory
JOBS-TO-BE-DONE is a perspective — a lens through which you can observe markets, customers, needs, competitors, and customer segments differently, and by doing so, make innovation far more predictable and profitable.
- Markets aren’t defined around products, but groups of people trying t...
Getting Started
The old product roll-out process is totally wrong for startups. That process is appropriate when customers are known and the market is well-defined. This is often not the case for startups. Customer development, then, is very important for startups, and there are a number of phases in the fra...
The Size Of The Market
- Total Addressable Market (TAM): the universe where your product lives
- Served Available Market (SAM): the people that can be reached via your sales channel
- Target Market: those who are your most likely customers.
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