Your biggest threat isn't who you think

Hey there,

Most guys think competition is straightforward. You find other companies doing what you do, then try to beat them. But here's something that'll blow your mind: Tesla's biggest competitor wasn't Ford or Toyota. It was your weekly trip to the gas station.

In 2008, while traditional automakers were building "better" cars, Elon Musk was studying something completely different. He watched how people hated stopping for gas. The detours, the smelly pumps, the rising prices. Tesla didn't just build an electric car. They eliminated the entire gas station experience.

The smartest companies don't beat their competition. They make it irrelevant by going after customer behaviours instead of other businesses. This post breaks down how Tesla, Netflix, and Amazon used this strategy to dominate, plus a simple framework you can use to spot your real competition.

Tesla's War Against the Gas Station Run

When Tesla launched in 2008, car industry experts laughed. Electric vehicles had failed for decades. GM literally crushed their own electric cars in the 1990s. But Musk wasn't trying to build a better Camry.

"The real problem wasn't the cars. It was that people despised going to gas stations," Musk said in early interviews. "They hated the detours, the wait times, the smell, and watching prices climb every week."

Tesla's solution wasn't just electric. It was convenience redesigned. Supercharger networks made "filling up" faster and cheaper. Over-the-air updates meant no dealer visits. They turned car ownership from a series of annoying errands into a seamless experience.

The results speak volumes. Tesla hit 1 million deliveries by 2022 and became worth more than the next 10 automakers combined. They won by eliminating behaviours that drivers had accepted as "just part of owning a car."

Netflix's Battle Against Saturday Night Video Store Runs

Reed Hastings started Netflix after getting slapped with a $40 late fee at Blockbuster in 1997. But the real breakthrough came when he realized their competition wasn't just video stores. It was the entire ritual of weekend movie planning.

"People hated having to decide what to watch before leaving home, drive to the store, hope their movie was available, then remember to return it on time," Hastings explained to investors in 2005.

Netflix eliminated that whole dance. Mail delivery meant no more weekend store trips. Their recommendation algorithm solved the "what should we watch tonight?" problem. When streaming launched, they killed the planning behaviour entirely.

The transformation was massive. Netflix grew from 1 million subscribers in 2003 to over 230 million globally today, while Blockbuster went bankrupt. They didn't become a better video store. They made video stores unnecessary.

Amazon's Fight Against Shopping Expeditions

Jeff Bezos launched Amazon in 1994 selling books online, but his real insight wasn't about books. He was targeting something every busy guy could relate to: the pain of shopping trips.

"Why should people waste their Saturdays driving to stores, walking through crowded aisles, waiting in checkout lines, and lugging heavy bags to their car?" Bezos asked in early shareholder letters.

Amazon attacked the shopping expedition behaviour head-on. One-click ordering eliminated decision fatigue. Next-day delivery made instant gratification possible. Prime membership removed shipping costs and made the behaviour shift permanent.

This strategy built a $1.7 trillion company. Amazon now captures over 40% of U.S. online spending because they competed against the hassle of traditional shopping, not just other retailers.

Spotify's Attack on Music Collection Management

Daniel Ek launched Spotify in 2008 when iTunes dominated digital music sales. Instead of trying to sell songs cheaper, Spotify identified a behavior that frustrated millions: managing music libraries.

"People were spending hours organizing playlists, buying individual songs they might not like, and constantly running out of storage space," Ek noted in press interviews.

Spotify made music ownership obsolete. Unlimited streaming eliminated purchase decisions. Smart playlists removed organization work. Discovery algorithms found new music automatically, ending the hunt for something good to listen to.

The platform reached 500 million users by 2023, fundamentally changing how people consume music. They won by making music collection behavior unnecessary, not by selling songs better than Apple.

How to Find Your Invisible Competitors

Map Every Step Your Customers Take
These companies succeeded by studying customer journeys, not competitor products. Tesla mapped the gas station experience, Netflix studied movie planning, Amazon analyzed shopping trips. List every action your customers take to solve their problem, then ask which steps create the most friction.

Look Beyond Your Industry
Your real competition might be a completely different type of business. Tesla competed with gas stations and repair shops, not just car companies. Netflix fought video stores and TV scheduling. Expand your view to include any business that captures your customers' time or creates inconvenience in their lives.

Target Habits, Not Just Needs
The biggest wins come from making established routines obsolete. People develop strong habits around familiar behaviours. Breaking them creates powerful customer loyalty. Focus on eliminating steps rather than improving them.

Why This Strategy Creates Long-Term Wins

Fighting behaviours instead of businesses builds deeper competitive advantages. Once customers adapt to Tesla's charging routine or Netflix's instant streaming, going back feels like punishment. The switching cost becomes psychological, not just economic.

This approach also creates much larger markets. Instead of fighting over existing customers, you expand the entire category by removing barriers that kept people out. It's the difference between winning market share and creating new markets entirely.

The companies that last don't just beat their competition. They make it irrelevant by solving problems customers didn't even realize they had.

What's your biggest daily hassle?