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Why Competing on 'Better' is a Trap

Why Competing on 'Better' is a Trap

5 min read

|

4th April 2025

5 min read

|

4th April 2025

In the early 1980s, Pepsi was feeling bold. It was going head-to-head with Coca-Cola in what came to be known as the “cola wars.” Pepsi ran ads showing people doing blind taste tests, choosing Pepsi over Coke. The message? Pepsi tasted better.

But here’s what happened: Coke didn’t lose its market lead. Pepsi didn’t become number one. Coke stayed on top, and Pepsi stayed second. Why? Because Pepsi was playing Coke’s game. They were fighting over who made the “better” cola. But Coke already owned the cola category in people’s minds.

That’s the problem with competing on “better.” You stay stuck in comparison. And the person who defined the game usually wins it.

The Race You Can’t Win

When you try to win by having slightly better features, slightly better prices, or slightly better service, you’re already starting behind. You’re chasing someone else's lead. You’re running a race they designed.

Think about it like this: If you open a coffee shop and say your coffee is “better” than Starbucks, what does that mean? How will people really know? And even if it’s true, will they care enough to change their habits?

Now think of what Blue Bottle Coffee did. They didn’t just say they were better. They said they were different. They sold the idea of "third-wave" coffee, hand-poured, single origin, slow brewed. It wasn’t about being better than Starbucks. It was a different story entirely. They created their own rules.

Price Wars and Feature Fights

Companies that try to be better often end up in price wars. They lower prices to compete. Then the competitor lowers theirs. And suddenly, no one is making money.

Take the airline industry. Many airlines compete by cutting prices and adding small perks. But it becomes a race to the bottom. In contrast, look at Southwest Airlines. They built their business around simplicity, no hidden fees, no assigned seating, and a fun brand voice. They stood out by being different, not by being better at the same game.

Or think about mobile phones. Samsung has spent years competing with Apple by adding more features: more cameras, sharper screens, bigger batteries. But Apple isn’t focused on specs. They focus on user experience, lifestyle, and brand. Apple owns over 50% of the US smartphone market, not because it has the most features, but because it created a category around “premium smartphones” with its own narrative.

Why ‘Better’ Doesn’t Stick

Even if you are better today, someone else can copy you tomorrow.

Let’s say you build an app with better speed and better design. Great. But your competitor sees what you did, copies it, and adds one more feature. Now they’re “better.” And the cycle continues.

Customers don't remember who was better last month. They remember who made them feel something new. Who taught them a new way to solve a problem. Who showed them something they didn’t expect.

That’s the power of being different instead of better.

The Better Trap in Startups

Many startups fall into this trap. They say things like: “We’re like Uber, but faster,” or “We’re like Airbnb, but cheaper.” That sounds good on paper, but it rarely works. Because Uber already means “fast rides” in people’s minds. Airbnb already means “home-sharing.”

Trying to beat them at their own story is almost impossible. Instead, smart startups ask: What’s a new story people haven’t heard yet? And how can we lead it?

For example, instead of building a “better fitness app,” the team behind Noom redefined the space. They focused on psychology, not just workouts or calorie counting. They created a new way to think about weight loss. That shift helped them stand out in a market full of lookalikes.

How to Avoid the Trap

So, how do you avoid the better trap?

  1. Start with the problem
    What problem do people accept as normal, but shouldn’t?

  2. Create your own frame
    Instead of comparing yourself to others, define a new way of seeing the world.

  3. Name your space
    When you give your solution a name, you help people talk about it and remember it.

  4. Sell your point of view
    People don’t buy features. They buy beliefs. Tell them what you believe, and why that matters.

Final Thoughts

The next time you hear someone say, “We’re better than X,” take a pause. Ask instead, “How are we different in a way that matters?”

Because being better may help you win a few battles. But being different is how you win the war.

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