In the fast-paced world of business, standing out from the crowd is essential for success. I’ve seen firsthand how companies that dare to be different can capture market share and thrive. Today, I want to explore a powerful strategy that can give your business a competitive edge: zigging when others zag.
The concept is simple – when your competitors are all moving in one direction, you should consider going the opposite way. This applies to various aspects of business, from product offerings to marketing strategies. By zigging when others zag, you can differentiate yourself and attract customers who are looking for something unique.
One area where this strategy plays out frequently is in the bundling and unbundling of products and services. When your competitors are bundling everything together, you might find success by unbundling and offering standalone options. Conversely, if everyone else is selling individual components, you could stand out by offering an all-in-one solution.
Let’s dive deeper into how zigging and zagging through bundling and unbundling can help you win in business.
The Power of Being Different
Throughout my career, I’ve always been drawn to innovative ideas and products that challenge the status quo. It’s not just about being different for the sake of it – it’s about identifying gaps in the market and filling them in unique ways.
Take Amazon, for example. When Jeff Bezos started the company in 1994, most people thought selling books online was a crazy idea. At the time, traditional brick-and-mortar bookstores were the norm. But Bezos zigged when others zagged, recognising the potential of e-commerce before it became mainstream.
Amazon’s success didn’t stop there. As they established themselves as the go-to online bookstore, they continued to zig and zag. When other retailers were focusing solely on their niche, Amazon expanded horizontally, selling everything from electronics to clothing. They even zagged again by leveraging their expertise in cloud computing to create Amazon Web Services, now a major revenue driver for the company.
This willingness to go against the grain and try new things has been a key factor in Amazon’s phenomenal success. It’s a lesson we can all learn from – don’t be afraid to take the road less travelled if you see an opportunity.
Bundling vs. Unbundling: A Delicate Balance
Now, let’s talk about bundling and unbundling. These strategies can be powerful tools for differentiation, but it’s crucial to understand when and how to use them effectively.
Bundling involves combining multiple products or services into a single package. This can provide added value for customers and simplify their purchasing decisions. Unbundling, on the other hand, involves breaking down a product or service into its component parts, allowing customers to choose exactly what they want.
The key is to recognise which approach your competitors are taking and consider doing the opposite. If everyone in your industry is bundling their offerings, you might find success by unbundling. If they’re all selling individual components, a comprehensive bundle could set you apart.
Let’s look at some real-world examples to illustrate this concept.
Unbundling Success Stories
In the early 2000s, the music industry was dominated by album sales. Artists and record labels bundled songs together, and consumers had to buy entire albums even if they only wanted one or two tracks. Then along came iTunes, which allowed people to purchase individual songs for £0.99 each.
This unbundling of music was a game-changer. It gave consumers more choice and control over their purchases, and it disrupted the entire industry. iTunes zigged when the rest of the music world zagged, and it paid off big time.
Another great example of successful unbundling is Dollar Shave Club. In a market dominated by expensive, feature-packed razors, they offered a simple, affordable alternative. By unbundling the razor from the handle and offering a subscription service for blades, they created a unique value proposition that resonated with consumers.
These companies saw an opportunity to give customers more flexibility and choice by unbundling products that had traditionally been sold as a package. By zigging when others zagged, they carved out significant market share in their respective industries.
The Power of Bundling
On the flip side, bundling can be equally effective when done right. Look at how streaming services like Netflix have bundled content. Instead of selling individual movies or TV shows, they offer unlimited access to a vast library of content for a monthly fee. This bundle provides tremendous value for consumers and has disrupted the traditional TV and movie rental industries.
Another example is Microsoft’s Office suite. By bundling word processing, spreadsheet, presentation, and email software together, Microsoft created a comprehensive solution for businesses and individuals. This bundle has become the standard in office productivity software, despite competition from individual, specialised apps.
In both these cases, bundling created a compelling offer that was more attractive to consumers than purchasing individual components separately. It’s a prime example of how zigging (bundling) when others zag (selling individual products) can lead to market dominance.
Timing is Everything
While the zig-zag strategy can be powerful, it’s important to recognise that timing plays a crucial role. The success of bundling or unbundling often depends on where the market is in its cycle and what consumers are looking for at that moment.
For instance, when cable TV first became popular, it was a bundle of channels that provided great value compared to the limited options of broadcast television. However, as cable packages grew larger and more expensive, consumers began to crave more flexibility. This opened the door for streaming services to unbundle content and offer more personalised options.
Now, we’re seeing a shift back towards bundling in the streaming world. With so many individual streaming services available, consumers are experiencing “subscription fatigue.” Companies like Disney are responding by bundling their streaming services (Disney+, Hulu, and ESPN+) to provide better value and simplify the viewing experience.
This cycle of bundling and unbundling demonstrates that there’s no one-size-fits-all approach. The key is to stay attuned to market trends and consumer preferences, always looking for opportunities to zig when others zag.
Applying the Zig-Zag Strategy to Your Business
So, how can you apply this zig-zag strategy to your own business? Here are a few steps to consider:
- Analyse your competitors: Look closely at what your competitors are doing. Are they all following a similar strategy? Is there a common approach that everyone seems to be taking?
- Identify gaps: Once you understand the competitive landscape, look for gaps or unmet needs in the market. Are there customer segments that are being underserved by the current offerings?
- Consider the opposite: If your competitors are all zigging in one direction, think about how you could zag. If they’re bundling, how could you unbundle? If they’re unbundling, is there an opportunity to create a valuable bundle?
- Test and iterate: Don’t be afraid to try new things, but do so in a measured way. Test your new approach with a small segment of your market and gather feedback. Use this information to refine your strategy before rolling it out more broadly.
- Stay flexible: Remember that what works today might not work tomorrow. Be prepared to pivot your strategy as market conditions change.
Let me share a personal example from my own career. When I first started in the infomercial business, most products were being sold individually through single-product infomercials. I saw an opportunity to zig while others zagged by bundling related products together.
For instance, instead of selling just a juicer, we created a complete “juicing system” that included the juicer, recipe books, and instructional videos. This bundle provided more value to the customer and allowed us to command a higher price point. It was a strategy that helped set our offerings apart in a crowded market.
The Risks of Zigging
While the zig-zag strategy can be incredibly powerful, it’s not without risks. Going against the grain means venturing into uncharted territory, and that always comes with uncertainties.
One risk is that you might be wrong about what customers want. Just because your competitors are all doing one thing doesn’t necessarily mean that doing the opposite will be successful. It’s crucial to back up your zig-zag strategy with solid market research and customer insights.
Another risk is that you might be too early or too late with your zig. Timing is critical in business, and being too far ahead of the market can be just as problematic as being behind the curve. This is why it’s so important to stay closely attuned to market trends and consumer behaviour.
There’s also the risk of execution. Even if your zig-zag strategy is sound in theory, poor implementation can derail your efforts. Make sure you have the resources and capabilities to execute your strategy effectively before committing to it.
Despite these risks, I believe that the potential rewards of a well-executed zig-zag strategy far outweigh the dangers. In today’s competitive business landscape, playing it safe often means getting left behind. Sometimes, you need to take calculated risks to stand out and succeed.
Beyond Bundling and Unbundling
While we’ve focused a lot on bundling and unbundling, the zig-zag strategy can be applied to many other aspects of your business. Here are a few other areas where you might consider zigging when others zag:
Marketing: If all your competitors are focusing on digital marketing, could you stand out with innovative offline campaigns? Or if everyone else is using traditional advertising, could you make a splash with guerrilla marketing tactics?
Customer Service: In an age of automated customer service, could you differentiate yourself by offering personalised, human-to-human support? Or if your industry is known for high-touch service, could you stand out by offering an efficient, self-service option for customers who prefer it?
Pricing: If your competitors are engaged in a race to the bottom on price, could you position yourself as a premium option with superior quality or service? Or in a market of high-priced offerings, could you disrupt things with a low-cost alternative?
Product Design: If everyone else is focused on adding features, could you win customers with a stripped-down, easy-to-use product? Or in a market of bare-bones products, could you stand out with a feature-rich offering?
The possibilities are endless. The key is to always be looking for opportunities to differentiate yourself and provide unique value to your customers.
Conclusion: Dare to Be Different
In conclusion, the zig-zag strategy of doing the opposite of your competitors can be a powerful way to stand out in a crowded market. Whether it’s through bundling, unbundling, or other innovative approaches, daring to be different can lead to remarkable success.
However, it’s not about being different for the sake of it. The goal is to identify unmet needs in the market and fill them in unique ways. It’s about zigging when others zag, but always with a clear purpose and a focus on providing value to your customers.
Remember, some of the most successful businesses in the world got where they are by challenging conventional wisdom and trying new approaches. Amazon, Apple, Netflix, and countless others have shown that zigging when others zag can lead to industry disruption and massive growth.
So I encourage you to take a step back and look at your industry with fresh eyes. Where are the opportunities to zig while others zag? How can you bundle or unbundle your offerings to provide unique value? What bold moves could set you apart from the competition?
Don’t be afraid to try new things and challenge the status quo. In my experience, that’s often where the biggest opportunities lie. So go ahead, dare to be different. Zig when others zag. You might just find that it’s the key to unlocking unprecedented success in your business.
Further Reading
[1] https://www.bcg.com/publications/2019/zig-zag-art-strategic-creativity
[2] https://hbr.org/2014/06/how-to-succeed-in-business-by-bundling-and-unbundling
[3] https://hbr.org/1997/07/discovering-new-points-of-differentiation
[4] https://www.elasticpath.com/blog/product-bundling-examples
[5] https://www.investopedia.com/terms/u/unbundling.asp
[6] https://copyblogger.com/zig-zag/
[7] https://notes.mtb.xyz/p/bundling-unbundling-and-timing
[8] https://www.investopedia.com/terms/p/product_differentiation.asp
[9] https://www.carolroth.com/community/business-strategy-zig-when-they-zag/
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