Entrepreneurial Judo aka "hit 'hem where 'hem ain't"

There are in particular five fairly common bad habits that enable newcomers to use entrepreneurial judo and to catapult themselves into a leadership position in an industry against the entrenched, established companies.
1. The first is what the American slang calls NIH ("not invented here"), the arrogance that leads a company or an industry to believe that something new cannot be any good unless they themselves thought of it. And so the new invention is spurned, as was the transistor by the American electronics manufacturers.
2. The second is the tendendy to "cream" a market, that is, to get the high-profit part of it. (...) "Creaming" (J.G: is pay attention only to high profile costumers) is a violation of elementary managerial and economic precepts. It is always punished by loss of market.
3. Even more debilitating in a product or service is the third bad habit: the belief in "quality". "Quality" in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not "quality" because it is hard to make and costs a lot of money, as manufacturers typically believe. That is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes "quality".
4. Closely related to both "creaming" and "quality" is the fourth bad habit, the illusion of the "premium" price. A "premium" price is always an invitation to the competitor. (...)
5. Finally, there is a fifth bad habit that is typical of established businesses and leads to their downfall. They maximize rather than optimize. As the market grows and develops, they try to satisfy every single user through the same product or service. (...)

The Essential Drucker
Peter F. Drucker
Collins Business (2005)