The Category Creation Myth

According to court filings, Steve Jobs had a working iPad prototype in 2002 – but he refused to launch it. He opted not to create a new category. Why?

His decision reveals a crucial lesson about category creation that most founders get wrong.

Think about it - In 2002, a tablet would’ve been a slow laptop with no keyboard or apps. Who would want that?

Instead, Steve saw what nobody else did…

While a full-sized tablet would’ve been a laptop downgrade, a pocket-sized tablet was a huge upgrade to the mobile phones of the day.

Steve’s decision reveals one big thing: Categories don’t just pop out of thin air. You're always replacing something.

• Spotify didn’t invent streaming music, they made it effortless

• Slack didn’t invent workplace chat, they made it efficient

• AWS didn’t invent SaaS hosting, they made it scalable

• Salesforce didn’t invent CRM, they made it accessible

• Canva didn’t invent design software, they democratised it

These so-called “category creators” didn’t create categories at all. They found underserved markets and disrupted them via a deeper understanding of customer needs. But they positioned themselves in a familiar way.

That last point is critical: Humans don’t adopt new behaviors easily. Often the path of least resistance starts in a familiar place but leads to a new one.

If you’re trying to sell an unfamiliar new product, start by asking yourself:

• What outcome are my prospects struggling to achieve?

• How is their current solution coming up short?

• Where would they look for alternatives?

• What do they expect those alternatives to look like?

Better yet, ask your customers. 😏

Before you can sell them what they need, understand what they want.

How can you make your prospects feel like you've read their minds?

Grab our free "Language Market Fit" kit for step-by-step instructions.