Best Brands of the Decade and their Key Strategies

“I don’t know what you do, but you do it well.”

Duffy, “Mercy”

The appeal of companies that have taken over the zeitgeist can sometimes feel like Duffy’s “Mercy” – you get sucked into their orbit, and suddenly find you *like* them, inexplicably, like a trusty companion. Looking back at a decade of big winners, winning product strategies that turn consumers into tribal advocates have common threads that fall into three categories. All can land a company on the map, but only some of have resilience in the face of change. The three strategies are:

1. Think in an ecosystem
2. Define the category
3. Make it more than the ordinary

Think in an ecosystem: Apple, Tesla, and Amazon

Source: Insider Monkey

Having a good product is, well, good. Having many good products that complement each other with smooth interoperability is even better. That’s ecosystems-thinking: figuring out how to make synergistic products that seamlessly integrate, to drive market domination.

Seamless like Apple

Apple was among the earliest companies to develop a suite of products that talk to each other. From Mac to iPhone to iPad, each could airdrop files to each other and sync your favorite music. Now with Airpods and iWatches, it’s simply a pain for Apple users to add non-Apple devices to the mix. As a consequence, success in one category – the iPhone – begets success in other categories – iPads, Macs, and iWatches. As users become enmeshed, switching costs rise. And as Apple stays cutting-edge in their leading category, there is even less incentive to switch.

Synergistic like Tesla

Tesla takes ecosystems-thinking to the next level, because they are deploying complementary products at massive scale. It started with their electric vehicles (EVs) and Supercharger stations. Next were Powerwalls and solar panels, allowing people to charge their cars at home and also supply their own day-to-day electricity. Most recently Elon Musk broke ground with the Boring Company to start a high-speed underground, EV-only tunnel to circumvent Los Angeles traffic. Tesla’s products are so well integrated and high quality that it will be hard for any competitor to take a piece of Tesla’s pie anytime soon.

Ubiquitous like Amazon

Amazon is not just the “everything store” anymore – they’ve also become the everywhere store. With the acquisition of Whole Foods, Amazon gained 450 stores in 42 states to offer pick-up lockers for Prime Members. Whole Foods has also become an ever-present marketing channel. I am regularly asked at checkout if I’m a Prime Member, and flashed deals for consumer staples as bait. Further, with Prime Video, billboards and subway ads remind me that I can’t watch Season 3 of The Marvelous Mrs. Maisel without Prime. I have a strange sense of “missing out” without a membership. The reach of Amazon’s ecosystem makes me want to join the club!

Whole Foods is in 42 states. Source: Inverse

Creating a full ecosystem is a highly defensible market strategy if you can pull it off. But most companies just have one thing they do very well. And a single concept can drive a winning strategy, as the following two examples show.

Define the category: Uber and Starbucks

One of the biggest signs of market domination is when a company becomes category-defining, providing standard-setting leadership that make it a reference point for any similar enterprise. Most big winners have done this by creating a new market where none existed before.

Ground-breaking like Uber

Uber has changed the way businesses think by creating a market-clearing platform where none had been conceived before. They achieved network effects that set the standard in their category — so much so that people say “let’s get an Uber” even when they mean Lyft here in NYC. Calling your startup the “Uber of X” is universally considered a selling-point. Startups are invoking Uber’s ability to capture first-mover advantage in a scalable, profitable way.

Benchmark-setting like Starbucks

Nowadays, “Let’s find a Starbucks,” is a common refrain in any airport around the world. Starbucks has defined a new minimum quality expected for a coffee, so much so that people are willing to spend $5 on what used to cost 50 cents. By carving out a masstige segment in a previously commoditized category, Starbucks opened the door for artisinal “hipster coffee,” shops, expanding the culture and experience surrounding coffee. Yet even as boutique cafes have emerged across NYC, many people still go to Starbucks! Because they have defined their category. Their first-mover advantage has allowed them to build a permanent association in consumer’s minds with consistent quality.

Of course very few companies can be a first-mover in their category. A few companies this decade have figured out how to be a great late-mover, as the final examples show.

Make it more than the ordinary: Allbirds and Away

Even a commoditized product can be a huge hit — by being more than just a product. Powerful brands can make everyday items feel extraordinary, as Allbirds and Away figured out how to do.

Sustainability with Allbirds

Allbirds came on the market with a message of sustainability at a time when the Paris Climate Agreement had been junked by the U.S. “Buy our comfy sneakers, and you can help save the planet,” was the implicit message. And it seemed to work! A quarter of my office had a pair at one point, and their brick-and-mortar store in the West Village is brimming with shoppers.

Wonder-lust with Away

Source: Away

Away quickly carpeted the NYC subways with images of chic travelers and a simple anecdote that many could identify with: arriving after a long journey with a dead cell phone. Their image of the tech-forward, boundless traveler struck a cord that has left them ahead of many “me-too” suitcases with battery slots.

Winning Big vs. Staying Big

When looking at the decade-defining brands above, they each represent something quintessential about the modern consumer economy and what works. Ecosystems of products are convenient to the point of become part of a lifestyle. Single products can also be powerful by carving out brand-new categories, or by digging down to a purpose beyond the product. My prediction is that the order of the categories above will reflect their. Making an ecosystem creates the stickiest customer relationship. Defining a category also guarantees a long company life, though with low switching-costs. And being more than ordinary will certainly give you a grand entrance to the consumer market, but perhaps not sustainably.