Create New Categories

Tim Ferriss discusses the Law of Category strategy, which focuses on creating new categories rather than competing in existing ones. This approach emphasizes differentiation and positioning to stand out in the market.

Key Points:

• Core Concept:

  • Create new categories instead of trying to be the best in crowded categories
  • Aim to be the only one in a new category rather than the best in an existing one

• Historical Examples:

  • Amstel Light: First light imported beer in US
  • Southwest: Created low-cost airline category

• Strategic Benefits:

  • Easier to stand out in the market
  • Avoid direct competition in crowded spaces
  • Creates clear differentiation
  • Can lead to competitive advantages through uniqueness

• Implementation Approach:

  • Look for "weird" opportunities that others aren't pursuing
  • Focus on areas where you have natural enthusiasm or advantages
  • Consider areas that are easier for you than others
  • Build endurance through genuine interest in the category

• Related Concepts:

  • Blue Ocean Strategy vs Red Ocean Strategy
  • Positioning and differentiation
  • Creating new market spaces
  • Standing out in a crowd through uniqueness

The strategy emphasizes that being first or unique in a category is often more valuable than being the best in an existing crowded space.