Hi there -
Here is this week’s “1 principle, 2 strategies, and 3 actionable tactics” for running lean…
1 Universal Principle
“You don’t compete by being better. You compete by making competitors irrelevant.”
Tesla perfectly illustrated this by not trying to beat car companies at making cars. Instead, they discovered a promise that would compel competitors to dismantle their entire business if they attempted to match it.
They promised “the fastest AND greenest car on the planet.”
2 Underlying Strategies at Play
I. Find Structural Trade-offs
The auto industry had a century-old trade-off: high-performance OR efficiency.
This wasn’t laziness - it was physics. Combustion engines created a fundamental engineering constraint that the entire industry was built around.
II. Break the Trade-off with Different DNA
Tesla used electric motors that naturally delivered instant torque AND zero emissions.
For Porsche to match this, they’d have to abandon combustion engines, retool factories, retrain engineers, and convince gas-loving customers to plug in.
For Prius, they’d have to abandon their efficient but safe brand identity.
3 Actionable Tactics
I. Identify the Bigger Context
Look beyond your product category to what people are actually trying to accomplish. Tesla buyers weren’t buying electric cars - they were buying status and values alignment.
II. Map Your Industry’s Sacred Trade-offs
Find what everyone accepts as “just how things work.” What either/or choices are incumbents forcing on people? Similar to performance or efficiency in cars, or selection and no late fees in video rentals.
III. Find Frustrated Customers
Identify which customers dislike making trade-off choices. Tesla found wealthy environmentalists who also loved fast cars.
That’s all for today. See you next week.
Ash Author of Running Lean and creator of Lean Canvas
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P.S. Ready to find your uncopyable promise? Take my business model design challenge, where I’ll walk you through the Undeliverable Promise Framework plus six other critical dimensions that determine whether your idea is worth pursuing.
It’s the same systematic approach that’s helped thousands of founders avoid getting crushed by incumbents with more resources.
P.P.S. Check out this week’s video: How Tesla Beat Car Companies (And What Startups Can Learn)
