10 times better

This post is part of our weekly internal communications at Rodati.

During the last few days I had the pleasure of reading From Zero to One, a wonderful book where Peter Thiel shares his experience on startups and covers the main aspects of what he considers fundamental for building a game-changing company.

A kind of business that changes the world and is unique on its own.

Thiel describes how the best companies of the world differentiate from the rest by creating their own "creative monopolies" and being kings there on that field. He explains this may be achieved through having an outstanding product, economies of scale, network effects and branding. The best companies you can imagine possibly have combinations of those aspects.

A few examples: Google is so good at what it does that we need to use it every day (product); Amazon drives online retail by having access to an unlimited inventory (economies of scale); Facebook is what it is because of connecting every human being (network effects); Coca-Cola has one of the most powerful brands of the world (branding)

At this point, Thiel mentions that to have an outstanding solution, the startup needs to be 10 times better than what existed before on an important dimension of the experience. For example, Apple was able to become the most valuable company of the world by crafting products that are much better than those of the rest of the companies in every aspect (and yes, also because of economies of scale and a branding that almost resembles a religion!).

“You have to be 10 times better than the second best” Peter Thiel

I believe this is true for every company, not only startups. What else is in it if not the strive to be the best?

When we think of Rodati, we should always have that concept in mind. For us to be truly successful, Rodati's experience will have to be at least 10 times better than car buying as we knew it before.

Are you up to that challenge?