Zig Where the Leader Zags
Beat an entrenched leader by changing the basis of competition.
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 5
- Confidence
- 94%
Zig Where the Leader Zags begins by identifying the incumbent's established formula and refusing to compete through imitation. The challenger then looks for an audience, talent pool, tone, channel, or customer need that the leader's formula neglects. The alternative must be conspicuous enough for customers to understand why it is different and credible enough to solve the same underlying job. Dennis Swanson applied this when he recruited Oprah to compete with Phil Donahue in Chicago: rather than finding another host who resembled the category leader, he backed a relatable Black woman with a radically different presence. The mechanism works because incumbents optimize around their existing identity, while challengers can redefine what customers expect from the category.
Origin
At struggling Chicago station WLS, Dennis Swanson chose Oprah Winfrey as the differentiated answer to dominant daytime host Phil Donahue rather than trying to imitate Donahue's established formula.
Core principles
- 01Do not imitate an incumbent on its strongest ground
- 02Look for an underserved audience or style
- 03Make a differentiated bet large enough to matter
- 04Use overlooked talent as a strategic advantage
- 05Judge the bet by customer response, not consensus
How to run it
- 1
Describe the Leader's Formula
Write down how the incumbent competes, including its audience, style, talent profile, distribution, and customer promise. Separate genuine strengths from conventions everyone merely copies.
Pro tip Ask which traits competitors treat as mandatory without testing them.
Watch out Do not caricature the incumbent or ignore why its formula works.
- 2
Find the Excluded Demand
Identify customers, needs, or forms of talent underserved by the dominant formula. Look for differences that improve relevance rather than differences pursued for novelty alone.
Pro tip Pay attention to people the default selection process routinely overlooks.
Watch out A non-consensus choice still needs strong evidence of customer value.
- 3
Choose a Visible Contrarian Bet
Select an alternative positioning that customers will notice immediately. Make it central to the offering rather than a cosmetic feature.
Pro tip The strongest bet changes who represents the product or how customers experience it.
Watch out Small compromises can blur the distinction and reduce switching.
- 4
Protect the Difference
Give the chosen talent or operating model permission to remain authentic. Avoid forcing it back into the incumbent's conventions through makeovers or excessive standardization.
Pro tip Explicitly name the traits that must not be normalized away.
Watch out Hiring differentiated talent and then suppressing the difference defeats the strategy.
- 5
Test for Rapid Pull
Measure ratings, adoption, conversion, or retention to see whether the market responds. If demand shifts decisively, invest behind the new basis of competition.
Pro tip Early customer pull can validate a contrarian thesis faster than industry opinion.
Watch out Do not attribute a short novelty spike to durable differentiation without follow-up evidence.
In the wild
WLS was struggling while Phil Donahue dominated daytime talk from Chicago. Dennis Swanson recruited Oprah instead of selecting a conventional imitation of Donahue, protected her authentic presentation, and made her the host of AM Chicago.
→ AM Chicago became an immediate success, beat Donahue locally, and helped move WLS from last to first in the market.
A startup entering a crowded budgeting market notices that incumbents emphasize complex dashboards. It builds a conversational product for users intimidated by financial software and employs coaches who communicate without jargon.
→ The startup wins a distinct customer group instead of competing feature-for-feature with established platforms.
Common mistakes
Being Different Without Being Better
Novelty alone does not create a strategic advantage. The difference must better serve a real customer need.
Copying the Leader's Surface Features
Imitation forces the challenger onto terrain where the incumbent has more experience and recognition. Change the basis of competition instead.
Normalizing the Contrarian Choice
Organizations often select unusual talent and then pressure that person to resemble the old default. Preserve the qualities that motivated the bet.
Is it for you?
Best for
This is best for challengers entering a market where the leader's formula is successful but narrow, conventional, or over-copied.
Not ideal for
It is not ideal when customers value standardization or when the proposed difference does not improve their experience.
From the transcript
“We're not gonna out Donahue Donahue. We're gonna zig where he's zagging.”
“No makeover, no diet, no new hairdo. Like you are America. Like that's the that's the whole point.”
“by doing something non-consensus and by zigging where others are zagging you can be an enormously profitable.”
From the episode
Oprah (Harpo Studios)