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# Counter-position
- URL: https://www.ekram.xyz/counter-position/
- Published: 2023-07-09T00:46:35.000Z
- Updated: 2026-03-05T17:24:55.000Z
- Author: Ekram

> "Giants are not what we think they are. The same qualities that appear to give them strength are often the sources of great weakness" \~ Malcolm Gladwell 

Positioning against the market leader offers unique advantages. You can steal their mindshare, hijack their word-of-mouth, or refocus the market conversation. But David, be careful as you face Goliath, as you may not come out alive. 

![](https://storage.ghost.io/c/d4/92/d4926cc8-429c-4d62-b7a3-f4263c862120/content/images/2023/07/1611868759371.jpeg)

So how do you coexist with the market leader without being targeted by them?

### Counter-position

First outlined by Hamilton Helmer in his seminal book "[7 Powers](https://www.amazon.com/7-Powers-Foundations-Business-Strategy/dp/0998116319?ref=ekram.xyz)", the concept of counter-positioning is when a newcomer adopts a superior business model that the incumbent actively avoids to protect their existing business. To adopt the startup's model, the incumbent would have to destroy their core line of business.

![](https://storage.ghost.io/c/d4/92/d4926cc8-429c-4d62-b7a3-f4263c862120/content/images/2023/07/introduction-position-1.jpg)

### Netflix

Netflix's counter-positioning against Blockbuster is a prime example. While Blockbuster generated a significant portion of its revenue ($800 million) from late fees in 2000, Netflix introduced a different approach. 

![](https://storage.ghost.io/c/d4/92/d4926cc8-429c-4d62-b7a3-f4263c862120/content/images/2023/07/netflix-illustration_final.jpg)

By mailing DVDs to customers' homes, Netflix allowed them to pay for up to three DVDs at a time. If customers failed to return them, Netflix withheld the next DVD on their list. As a result, Blockbuster had to eliminate late fees in 2004, essentially succumbing to Netflix's strategy and cannibalizing its own business model for survival.

### Incumbent Inertia 

Counter-positioning leverages the inherit inertia of the market incumbent. Incumbents are often stuck in their ways and too slow to wield together the resources to make a change. 

Force the incumbent into a dilemma: 

A) should they stick to the current business model, risking market share loss to the new entrant? 

B) Or should they embrace the unproven new model, jeopardizing their existing business? 

![](https://storage.ghost.io/c/d4/92/d4926cc8-429c-4d62-b7a3-f4263c862120/content/images/2023/07/istockphoto-858557956-170667a.jpg)

It's a high-stakes decision that could make or break their future. Success lies in either preventing the market leader from responding or capitalizing on their delayed response.

### Make 'em dance 

Microsoft's embrace of ChatGPT with Bing exemplifies counter-positioning. This is a feature that Google would never ship on its own because it undermines search ads revenue to move to an answers-based model.

Is this Google's Kodak moment? I don't know. 

But as Satya Nadella said, "I want people to know that we made them dance". 

> Microsoft CEO Satya Nadella on Google competing with Bing’s new AI. “I hope with our innovation they will definitely want to come out and show that they can dance. I want people to know that we made them dance.” Fascinating interview with [@reckless](https://twitter.com/reckless?ref%5Fsrc=twsrc%5Etfw&ref=ekram.xyz) here: [https://t.co/SkrGXgIbWP](https://t.co/SkrGXgIbWP?ref=ekram.xyz) [pic.twitter.com/RTVQBTgcnH](https://t.co/RTVQBTgcnH?ref=ekram.xyz)
> 
> — Tom Warren (@tomwarren) [February 8, 2023](https://twitter.com/tomwarren/status/1623149955358801920?ref%5Fsrc=twsrc%5Etfw&ref=ekram.xyz)

And Google is certainly in 'code red, reactive mode. 

[Google “upends” internal teams to counter threat posed by ChatGPTExecutives have apparently redirected staff to compete with ChatGPT developments![](https://cdn.mos.cms.futurecdn.net/flexiimages/edzic1oowz1671199822.png)IT ProRoss Kelly![](https://cdn.mos.cms.futurecdn.net/Q849tLKSdhUT92YFD6YJpa-1200-80.jpg)](https://www.itpro.com/technology/artificial-intelligence-ai/369766/google-upends-teams-to-counter-threat-chatgpt?ref=ekram.xyz)

Make 'em dance.