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Lead Editor

Mark Cuban Explains Why It Is Imperative That You Know Your Industry

When every business begins it enters an industry and is placed in immediate competition with every other similar business; this occurs regardless of size. 

Consider the Nubia smartphones and Apple’s iPhones, both share the cell phone industry and are competing, despite the iPhone being the more preferred device and having the lion’s share of the industry. In a conversation with Patrick Bet-David, Billionaire entrepreneur, Mark Cuban, shared his perspective on what it takes to compete and become the ‘Apple’ in your industry instead of the ‘Nubia.’

Mark expressed his perspective on the key to success in business through one simple phrase, “Know your industry better than anyone else does.” And, although the phrase is rather concise, its requisites should be as daunting as they appear.

The task of solely knowing your industry, although imperative, requires an astronomical amount of effort. However, having to know your industry better than all of your competition is challenging to a point where it can be considered nearly impossible.

 
What knowledge of your industry entails for you as an entrepreneur is that you acquire complete awareness of everything that’s happening in your industry, as well as to attain a clear understanding of how everything in your industry operates.


An entrepreneur’s knowledge concerning their industry must be extensive. This is especially true for Mark due to his belief that “Your competition knows as much as you do, if not more.” Unfortunately, the toughest challenge that entrepreneurs face when dealing with this situation is that their unaware of what their competition is aware of, and hence they can only assume.

The only assumption that’ll lead to an entrepreneur’s business succeeding, however, is one in which the competition knows everything about their industry as well. Therefore, unless an entrepreneur is aware of everything concerning their industry and they continue to update themselves on any changes or discoveries that occur, they will always be behind their competition.


A “Lack of brains and lack of effort,” is what Mark has referred to as the one major reason why businesses will fail. Entrepreneurs see fit that having a mediocre-at-best understanding of their industry is enough to succeed, which ultimately leads to their failure.







A “Lack of brains and lack of effort,” is what Mark has referred to as the one major reason why businesses will fail. Entrepreneurs see fit that having a mediocre-at-best understanding of their industry is enough to succeed, which ultimately leads to their failure.


Going back to the earlier example with the two phones and how Apple manages to have the lion’s share of the market due to its knowledge and understanding of its industry. Apple has achieved the lion’s share of the phone market by providing its customers with more than what they would’ve ever expected from something as simple as their phones.

In the past phones were simply a means of communication. However, Apple managed to turn their devices into luxuries and status symbols, something that no other company in the phone industry had managed to do. In doing so, Apple became the pioneer in its industry and remains the most used phone brand in the world.


By understanding the phone industry, Apple managed to establish itself as the leading brand in it. Anything that Apple’s competition offers consumers, Apple offers the same and even more. The visible success of such a business only affirms the importance of knowing your industry.

Although it takes an immense effort to understand your industry, you’ll always be better off for it as an entrepreneur. Extensive knowledge of your industry will bring to light the limitations of and gaps in your competition’s businesses which you can utilize to ensure your success. “Put in the work,” become the ‘Apple.’

“Know your business and industry better than anyone else in the world. Love what you do or don’t do it.”

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Denum

Denum is the Merkel’s Lead Editor as well as a specialist in perspectives.  You’re invited to follow and connect with him on LinkedIn, Facebook, as well as Instagram.