Another perspective to consider is to think differently, not merely about improving existing ideas. If you’re entering a market with the mindset of doing what another company is already doing, but slightly better, you’re setting yourself up to compete for market share rather than aiming to dominate as a category king. It’s crucial to distinguish yourself as something different, not just better. This principle has resonated throughout history in business innovations.

Airbnb started out when Brian Chesky and Joe Gebbia were looking to meet their rent. Being broke, they decided to make do with what they already had on hand – their apartment and an opportunity of most hotels being sold out during a design conference in San Francisco in 2007. The duo decided to rent out air mattresses in their San Francisco apartment to conference attendees, offering a cheaper and more personalized alternative to hotels. This experiment evolved into Airbnb, a hotel industry disruptor like never before! By enabling people to rent out their homes or even a spare room, they created a new category of short-term rentals and experiences.

Creating a new category isn’t just about immediate success; it’s about embedding a lasting bias in consumers’ minds. Once established, these biases are challenging to dislodge. Even today, Airbnb maintains a significant share of the holiday home market, a testament to their category king status achieved through thinking differently.

A favorite concept among Silicon Valley venture capitalists is the “zero billion dollar market.” This concept highlights the allure of identifying huge opportunities that others overlook or don’t yet see. It requires vision, courage, and the ability to persuade investors and customers alike of the existence of a market that currently doesn’t exist. By envisioning and creating these zero billion dollar markets, innovators can carve out unparalleled success.

Take, for example, Amazon Web Services (AWS). When Jeff Bezos first introduced the concept of renting computing power by the hour, it was a radical idea. AWS didn’t fit into any existing category—it was creating something entirely new. Bezos believed in the potential of cloud computing even when others struggled to grasp its significance. He sought to define and dominate a market that was non-existent at the time, eventually transforming AWS into a cornerstone of Amazon’s business empire.

Identifying unmet needs or inefficiencies in existing markets and introducing innovative solutions can lead to the creation of entirely new categories, paving the way for industry disruption and long-term success. It is imperative not only to improve upon existing ideas but also to innovate and create entirely new categories to achieve category king status.