The Better Trap

Competing with a 'better' product in an existing category almost never works

Christopher Lochhead
How to become a category pirate

The Better Trap

"Zuckerberg is going to blow in excess of a billion dollars on Threads and it will fail. Because you can't take an existing problem with an existing solution, launch exactly the same shit, tell the world it's better and have the world embrace it. Because the problem makes the solution the other way around." — Christopher Lochhead

What It Is

The Better Trap is the mistaken belief that a superior product will naturally win against an incumbent. Most entrepreneurs unconsciously make an unquestioned decision to compete in an existing market with a "better" product/service/brand, assuming that when customers see how much better their offering is, demand will follow.

This trap is seductive because it seems logical: find a proven market, build something 10x better, and customers will switch. But the data shows this rarely works. The problem creates the category and defines acceptable solutions—not the other way around.

How It Works

The Better Trap operates through several mechanisms:

Existing Problems Have Existing Solutions: When a problem is well-understood and a solution is well-established, there's no cognitive space for a new solution—even a better one. The iPhone already solves your smartphone needs. A "better" iPhone from another company doesn't solve a problem you have.

Distribution and Brand Don't Save You: Threads had the greatest distribution advantage in software history (billions of Facebook users), a legendary brand, and a free product. It still failed because it offered a known solution (Twitter clone) to a known problem (microblogging) with no new problem-framing.

Examples of the Better Trap:

  • Amazon Fire Phone: Jeff Bezos built a better phone. Nobody bought it. The iPhone already solved the problem.
  • Microsoft Stores: Copied Apple Stores exactly. Lost $400M-$1B. Same solution to the same problem doesn't work.
  • Red Bull Cola: Red Bull assumed their brand could extend to any beverage. It couldn't—the category made the brand, not the other way around.
  • Threads: Greatest distribution advantage in history, but a direct Twitter copy. Fastest app to 100M users, then cratered.

Why 10x Better Doesn't Work: The common advice "be 10x better" misses the point. 10x better at solving the same problem the incumbent already solves doesn't change the customer's perception of what they need. They don't need a 10x better solution—they need a solution to a different problem.

How to Apply It

  1. Ask yourself: What problem am I solving? - If the answer is "the same problem as the incumbent, just better," you're in the Better Trap.

  2. Check if the problem is well-defined - Well-understood problems with well-established solutions leave no room for "better." You need a new or reframed problem.

  3. Reject the "best product wins" assumption - This is one of the most deeply held beliefs in tech, and it's wrong. Categories make products, not the other way around.

  4. Look for problem reframing opportunities - Instead of "we're a better X," ask "what's the real problem, and why is X the wrong framing of it?"

  5. Test with category thinking - Before building, ask: "Are we creating demand or capturing demand?" If capturing, you're fighting for 24% of someone else's category.

When to Use It

Use this framework as a diagnostic tool when:

  • You're pitching your product as "X but better" or "the better version of Y"
  • Your differentiation is primarily features, speed, or price within an existing category
  • You're entering a market with a clear incumbent and established solution
  • Investors or advisors are telling you that you just need "brand and distribution"
  • You're trying to convince yourself that being 10x better will win

The Better Trap is particularly dangerous for:

  • Big companies with resources who believe they can out-execute (Microsoft, Facebook, Amazon have all fallen into it)
  • Startups who see "obvious" improvements to existing products
  • Entrepreneurs who love their product more than they understand their customer's problem

Source

  • Guest: Christopher Lochhead
  • Episode: "How to become a category pirate | Christopher Lochhead (Author of Play Bigger, Niche Down, more)"
  • Key Discussions:
    • (00:29:19) - Introduction to the Better Trap concept
    • (00:30:08) - Threads example and why distribution didn't save it
    • (00:35:16) - Amazon Fire Phone example
    • (00:36:28) - Microsoft Stores and Red Bull Cola examples
  • YouTube: Watch on YouTube

Related Frameworks

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