Zero to One: Notes on Startups, or How to Build the Future · chapter 5 · id zero-to-one-c5-04-a-technology-must-be-at-least-
“A technology must be at least 10x better than existing alternatives to create a genuine monopoly advantage. Incremental improvements are not enough.”
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Receipts
Gourville (2006) -- Eager Sellers and Stony Buyers, Harvard Business ReviewFLAGGED: dead link (404)
New products need to be 9x better than alternatives to overcome consumer loss aversion. Consumers overweight losses from switching by 3x while companies overweight benefits of their new product by 3x, creating a 9x gap.
Geoffrey Moore -- Crossing the Chasm (1991)source alive
Moore argues that compelling reason to buy requires significant improvement, but the specific magnitude depends on the customer segment and switching costs. No fixed multiple is universal.
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