A recurring move I see companies making is choosing to attack a more powerful competitor where they are strongest, not weakest.
Former military strategist Sun Tzu argued that “winning a hundred victories in a hundred battles is not the pinnacle of skill. Subjugating the enemy without a fight is the pinnacle of skill. So in war the way to avoid what is strong is to hit what is weak.
Comparing how Cyndx competes in the search market and how Zoom competes in the video conferencing market, one company is attacking where the market is weak and the other is attacking where the market is weak. is strong.
Cyndx, a targeted search engine provider for investment banking, approaches the fight like Tzu would by hitting the market where there is an opening with a targeted service, while Zoom develops a competitor in one of the categories. strongest products on the market.
Let’s explore how Cyndx successfully tackles what should be an impossible task with aggressive use of AI, while Zoom takes a different approach:
What Cyndx did was create the kind of tool that the search market should have created but didn’t. Thus, Cyndx has managed to be a dominant search tool in many banks.
Banks invest in many technologies, but they often don’t understand them well enough to optimize them. This means that related implementations in banking often perform well below their potential, and with investment banking, where you need as much information as possible about a potential investment, this leads to process failures. and avoidable losses.
Using advanced artificial intelligence (AI) techniques, Cyndx provides a purpose-built, targeted tool to quickly perform due diligence and aggregate and curate information surrounding a potential investment, so that the financial analyst doing the work gets a quick and easy assessment. thorough review of all related data and can then make an informed decision about the acquisition. This offers multiple advantages both in terms of the quantity and quality of information provided to the decision maker, so that they can both act faster and with much greater certainty than with standard research.
Covering seven languages, the AI built into the Cyndx search tool uses what it knows from similar searches by previous users to help refine and target finance-related search and incorporate things like the size of the company, the number of employees and the location, both in the search. criteria and presented as results as needed.
Typical results include major suppliers, major customers, retained patent data – which shows where the company actually spends its time and the validity of those patents – are they defensible, have they been successfully defended – and background of management personnel. A recently added feature is instantly derived valuation, so the investing entity can determine if an investment is supported by the target company’s valuation.
This tool is actively used in about 90% of investment banks, but only in about 10% of companies actively making acquisitions, which suggests both a growth opportunity for Cyndx and a competitive opportunity for non-banking companies making actively engage in similar types of investments and acquisitions.
It’s a subscription service, so it’s not corrupt, and it’s focused on an area where the search market isn’t, which means the market probably isn’t and will not work to provide a competing offer.
See more: Artificial Intelligence (AI) in banking
The zoom is rightly concerned about competitors bundling video conferencing with productivity suites. However, collaboration is an obvious feature to add to a productivity suite, making it difficult and probably inadvisable to try to use government anti-trust tools to fight back.
To remedy this, Zoom has reported that they are expanding into the productivity spacemirroring what some tech companies have faced with similar issues.
Zoom’s approach might therefore be better served by using Cyndx’s approach. Rather than attacking the productivity market, attacking specific market segments, such as education or remote meetings for governments or medical collaboration – requiring high security but with little need for integration with office tools – and tech platforms – like Linux, Android and Chrome – are rare moves Zoom could champion. They can fly under the radar and allow Zoom to be more successful.
Regardless of these moves, Zoom should advance its AI capabilities to better reflect what competitors are deploying to reduce the frequency of competitive migrations.
See more: Zoom Product Overview
Two market approaches
When taking on a bigger competitor, remember Sun Tzu’s advice. Do a competitive assessment to better understand not only where the competitor is weakest, but where they are currently not focusing.
Cyndx has clearly made it in the search market. Cyndx doesn’t just expand where there are market opportunities, it’s likely the market doesn’t care, which means it won’t displace Cyndx’s resources.
On the other hand, Zoom appears to be attacking one of the areas where the market is strongest and doing so in a way that will focus the market on efforts to act aggressively in return, leading to costly competition with companies with large resources and market presence.
Ultimately, the lesson is that Tzu was right: if you want to win, understand your competitor and go where they’re not and try to find approaches specifically that won’t focus them on your market to reduce your risk and competitive costs. .
See more: Why NVIDIA Became a Leader in the AI Market
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