How to Beat Your Top Competitors

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Do something else. You heard us, right. (It's a radical thought, and we're still exploring the idea ourselves. So bear with us!) One favorite questions clients ask: How do I beat competitors? We're normally consistent with our response: If you don't have the resources to provide a better product than Macho Man Widgets, don't compete. Instead, do something else that'll put yourself heads and shoulders above the competition.

For instance, consider Silicon Valley's top heavyweight fight: Yahooooo! vs. Gooooogle.

Yahoo (YHOO), for a time, focused on search where Google (GOOG) ruled. Then, the smart executives at Yahoo -- knowing they didn't have the resources to compete head-to-head with the firm south on the 101-- decided to excel in something else: user-generated search listings. The phenomenon, known as social bookmarking, taps onto the exponential number of users leaving "tags" (publicly-searchable bookmarks) to pages. Despite short-term investors affecting its share price, Yahoo's targeted acquisitions shows that it's doing well and sticking to what they do best. We see great potential if you're looking for a stock choice. In other words: Don't attack Mike Tyson. Attack Richard Simmons. Have fun. p.s. And no, we're not advocating physical violence ;-)

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Posted on March 21

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