More X-Factor Examples

Thinking more about the X-Factor post from a few days ago, I realized there are a few more examples worth citing. As a quick recap, the general idea is that an X-Factor is a competitive advantage that is 7 – 10x better than the industry. Let’s look at some additional examples:

  • When Google introduced Gmail they offered 1GB of storage space, which was much more 10x the space of Yahoo! Mail or Hotmail
  • America Online, back in the 1990s, distributed over one billion (yes, billion) free trials on CD-ROMs, which is more than 10x their competitors
  • Salesforce.com, one of the pioneers of SaaS, reduced the cost of enterprise CRM software by more than 10x (NetSuite did the same for ERP software)

I encourage entrepreneurs to look at products they use on a regular basis and ask themselves what X-Factors got the product to where it is today.

What are some more X-Factor examples?

Comments

2 responses to “More X-Factor Examples”

  1. Adam Avatar
    Adam

    One that comes to mind is Amazon S3 & EC2 – lowering the cost of computing power & storage.

    The Nintendo Wii also comes to mind, but more of a transformative product than one that can be measured against others.

  2. davidcummings Avatar
    davidcummings

    Thanks Adam – those are great additions.

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