STRATEGY: The Average Trap ??

STRATEGY: The Average Trap ??

A while ago I met a-few-billion-euro company that operates in the market of the commodity, more challenging than FMCG, where brand is simply unknown to the final consumer.

What was even more surprising this company does not buy market data, instead they rely on their own, mostly qualitative data from their own customers and research.

They are global market leader.

Company has huge differentiation in its operating categories.

They beat the odds, having a decades of successful performance behind them.

Bold targets ahead of them.


This made me think hard. It is not about the market you are in and it is also not about following industry data-driven insights.

Companies often obsess over industry data and performance averages, endlessly and tirelessly looking for a data that does not exists. And turns out is may be not even needed.

Only to measure themselves against competitors' benchmarks.

Here's the truth: transformative companies don't compete on averages - they create entirely new categories.

Exceptional companies (CEO, Investors, Foudners) are not slightly better; They are fundamentally different.

Companies move from average to top performance by bold, decisive moves - not gradual improvement.

I researched and noted here some of the take aways on how to escape the 'average trap'.


?? Chasing Data is Wrong

Track metrics that matter for YOUR business model, not your industry's standards.

Example: While everyone in tech-companies obsesses over CAC and LTV, successful outliers are focused on organic user growth and word-of-mouth virality.

Building billion-dollar company without what I call 'marketing burning machine'.


?? One Outlier Advantage

In the early-stage land or for every innovation: success follows power laws, not normal distributions.

One feature, one customer segment, or one growth channel often drives 80% of your results. Identify these asymmetric opportunities early and double down aggressively.


?? The Pivot Principle

When you discover you're in a 'mediocre' market (predictable, low stable returns), don't try to optimise - pivot to find your 'extreme' opportunity (where the Outlier Advantage is possible).


?? Beyond Vanity Metrics

Create internal measurements that track what makes you unique. Examples:

  1. Customer Wow Index, forget NPS = % of customers who can't imagine going back to old solutions
  2. Innovation Delta, forget MRR = Cost or time savings vs. traditional methods
  3. Market Creation Rate, forget Market Share = % of customers who never used a similar solution before


?? The Competition, Trap #2

The more you focus on competitors, the more AVERAGE you become. Instead:

  • Spend 80% of your time understanding your users
  • Build for where the market will be in 5 years
  • Create metrics that measure impact, not comparison

If your success metrics could apply to your competitors, they're probably not the right metrics.

To conclude, here is my framework to avoid 'The Average Trap', for your 12-rolling months of planning.


This strategic framework designed to escape the "mediocrity trap" and achieve exponential growth.

Project Portfolio Life Cycle

  1. Maintain 2-3 initiatives at a time in ACCELERATION ZONE. It is your market creation space.
  2. Use PREPARATION ZONE to build the next momentum. Foundation building.
  3. Once in PROFIT TRAP, try to find the way out. Find your unique metrics ??Innovation pipeline.
  4. Monitor DANGER ZONE warning signs. Quarterly or monthly, based on you needs. Comfort with status quo.

?? Don't Wait: Remember, staying in the middle of the market means near-zero economic profit. The time for bold moves is now.

If you want to book an individual workshop session on the topic, DM me!


Stay tuned and add this thought letter to your mail by joining me on Substack.

Warm welcome here :)

Ruslan Kovalenko

Co-founder & CEO @ SoftTrainer - We use AI to replace confusion, not people. Real-world soft skills reimagined!

4 个月

Alexandra Hnativ, I loved your take on innovative metrics like the Customer Wow Index and Market Creation Rate! It reminded me of the Blue Ocean Strategy, which emphasizes redefining markets rather than competing. That said, I’m curious - how would you track the Market Creation Rate while persuading investors who still focus on competitive benchmarks?

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