How Facebook, Amazon, and Tesla Used the Same “Beachhead” Strategy to Enter an Entrenched Market

Further reading on Beachhead strategy: https://www.scribd.com/presentation/21539640/Sean-Parker-s-Web-2-0-Summit-Presentation https://umarbahadoor.com/the-beachhead-strategy/ https://ewthoff.home.xs4all.nl/Weppage%20documents/Summary%20Crossing%20the%20Chasm.pdf https://medium.com/mbreads/crossing-the-chasm-6fe8426eb270 Follow me on Twitter: https://twitter.com/heydave7 Follow me on Instagram: https://www.instagram.com/heydave7 Watch this video on what a 10x company is, https://www.youtube.com/watch?v=r9HtG-jJSTY Watch this video on how new tech goes mainstream, https://youtu.be/gVsFsydllNo It’s extremely difficult for a new company to enter an entrenched market. Most of the time, companies fail. In this video I dive into a key strategy to go mainstream that every investor needs to know. The beachhead strategy is about focusing your energy and resources on one market segment and trying to dominate that market before moving into larger markets. The analogy comes from the invasion of Normandy where the Western Allies established a beachhead in France that became the turning point of World War II. First, businesses need to conquer a beachhead by dominating a market segment and then they can attack adjacent markets. Facebook adopted a beachhead strategy when they focused their efforts on establishing dominance on one college campus at a time. Further, Facebook extended the beachhead strategy when the focused their efforts to establish dominance in one country at a time. Amazon started their beachhead with the selling of online books, and then was able to go into adjacent markets. Tesla started their beachhead with the Tesla Roadster. It was a small market but Tesla dominated that niche and sold 2450 Roadster vehicles. In the car market, niches only exist usually at the top of the market, and the more downstream you go the more mainstream the market is. So, Tesla’s strategy has been to dominate every market segment they enter. This has been the key to their survival and success. Other auto makers aren’t establishing a beachhead anywhere. Even the “eco buyer market” that many auto makers are targeting with their EVs is more of a bridge market that won’t exist once all cars go electric. Here are some questions from viewers that I answer in this episode: Issaac via davelee.tv: Hello Dave, I have been watch your youtube channel religiously and greatly appreciate your wisdom. My question is I am only a quarter of the way of being an accredited investor which prevents me from buying the rumored Starlink IPO. Do you have any insight how I can secure some shares since I don't meet the criteria? I would be a proud owner and not trade my shares. 96EEng Great analysis Dave! I personally think it's too late to catch Tesla. The best way forward would be to collaborate. It would be great if one of the Auto Giants built a car around Tesla Technology whether it be Autonomous Tech or Battery Tech. I'd love to see a Toyota or Honda with a "Tesla inside" badge. Apple would be best to focus on Wearable technology. Improving human and technological integration. Maybe they should partner with Neuralink. ???? michael barth Could Apple outsource to Tesla? Bob Long Dave, can you comment on how you avoided investing in Theranos. It seems that stock could have easily sucked you in before the reality became known. Please share this video with others on Reddit, Facebook groups, and forums. Check out my archived articles/posts on Tesla: https://teslamotorsclub.com/tmc/threads/articles-megaposts-by-davet.23473/#post-485768 Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date. Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts
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