If you want to buy a Ferrari Purosangue, you need to wait at least two years. Incidentally, you have to bring a lot of money as well.

If you wanted to buy a Trabant, the notoriously awful car produced in East Germany until 1990, you had to wait more than ten years.

Though the common theme here is a ‘waiting list,’ both situations couldn’t be more different: The Ferrari is scarce because it’s extremely desirable.

The Trabant was scarce because it was the only vehicle available for an average East German worker.

This is the difference between high demand driven by desirability and high demand driven by a lack of alternatives.

Too often, we convince ourselves that our success is caused by our great service or product. All the proper signs are there: healthy growth, good margins, and a booming stock price.

This illusion shatters when a disruptive competitor enters and suddenly provides a much better alternative.

Typically, disruption eliminates the negatives while simultaneously strengthening the positives.

For example, Uber provided a more convenient, cheaper, and more reliable service compared to the vast majority of other taxi companies. No wonder clients quickly jumped ship.

Perhaps your clients are your clients because they simply don’t have an alternative…yet.

Business KPIs only tell part of a bigger story. Sometimes, the part we don’t see is the part that actually matters most.

Are you in danger of being a Trabant that cosplays as a Ferrari?