WSJ – Competition Is for Losers by Peter Thiel

Logo-for-the-Wall-Street-JournalExcellent WSJ editorial, ‘Competition Is for Losers’, by one of Silicon Valley’s best minds – Peter Thiel.

In a very  insightful editorial from one of Silicon Valley’s best minds, Peter Thiel advises “If you want to create and capture lasting value, look to build a monopoly”.  Not the type of monopolies that are achieved through sheer power, but rather those that create a product or service so vastly superior, that it cannot be copied easily.  Google is one such example that he references.

He writes “every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.”  His discipline of thought and achievements are noteworthy – Paypal, Palantir (Big Data, Predictive Analytics), Facebook and more.

Zero to One by Peter Thiel
Timeless advice – he cautions that a “company could create a lot of value without becoming very valuable itself”; or in other words, creating a ‘big business’ without creating value for its shareholders (e.g airlines).  Many enter markets that are ‘perfectly competitive’ and correspondingly suffer the perils of extreme competition, instead of allocating their precious time to moving away from the crowd and taking a contrarian approach. His advice to entrepreneurs:  “If you want to create and capture lasting value, don’t build an undifferentiated commodity business.”

I look forward to reading Peter Thiel’s book ‘Zero to One:  Notes on Startups, or How to Build the Future’.

To read the full article on the Wall Street Journal’s web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics, Cause Marketing and Digital Advocacy in Washington DC.

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