<aside> <img src="/icons/trophy_purple.svg" alt="/icons/trophy_purple.svg" width="40px" /> Welcome to The Unfair Advantage

In this video, we’ll cover how to get an unfair advantage on your competition. You’ll see how we beat competitors over a long enough timeframe, so that you can dominate your market and print money. Let’s get started.

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Perfect Competition 🏈

Perfect Competition is a microeconomic concept that refers to a market structure where there are many buyers and sellers all trading identical products or services.

In this market structure, all buyers and sellers have complete and accurate knowledge about the market, including prices, quality, acquisition strategies and available alternatives.

Additionally, there are no barriers to entry and firms can enter or exit the market without incurring significant costs to do so.

This means that:

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Prices cannot be raised or dropped → If one company sells at a higher price, it will lose customers to competitors or new entrants. Everyone keeps cutting prices as low as they can to get more customers and if they cut them any further, they’ll be unprofitable.

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Operations are hyper-efficient → All of the businesses are extremely efficient. In order to be profitable, they have to be run like a well-oiled machine without a single dollar being wasted. No-one can reduce their costs any further.

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As a result of this profit will be driven to zero over a long enough time horizon.

The reason companies make a profit is because the structure of their market or company defends against competition to some degree.

****This is known as a moat and the bigger the moat, the greater the profits that can be enjoyed by the company (and the longer they can be enjoyed for).

For example:

• COMPARE → trying to compete with Amazon, Boeing or Toyota…
• VERSUS → trying to compete with someone selling DFY blog posts…

Two great examples are Facebook and Uber. Each have a strong network effect due to the number of users on the platform, making them hard to compete with.

To do this, you must aim to build a business that:

1. Has as few competitors as possible
2. Has a differentiated product
3. Has information asymmetries
4. Has high barriers to entry

This way, you can charge higher prices than your competitors and have a bigger gap between cost of delivery and price you charge—resulting in more profit (over a longer period of time).

This is the goal of your offer—to create a category of one.

The First Step 🎬

What I’m about to say will sound contradictory to what I just told you about competition, but it’s actually not—and it will make you massive profits if you apply it well.

One of the best ways to build your offer is by modelling what’s already working in the market and executing better than the competition.

There’s 3 steps to this: