When most people think about launching a new product or starting a business, they consider established markets – places with lots of customers and revenue. But Nvidia (NASDAQ:NVDA) CEO Jensen Huang takes a different approach. He is more interested in the “zero billion dollar market.” By adopting this unconventional strategy, Nvidia has become one of the most valuable companies in the world. What does he mean by this and how can it help you?
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A zero billion dollar market is a market that doesn’t yet exist. In other words, there are no competitors or customers because no one is considering it or daring to invest in it. This approach is risky because the results are not guaranteed, but it can be very lucrative if successful. Jensen Huang’s mission is to find these untapped niche markets and turn them into thriving industries.
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So why does Jensen like these markets? The reason is simple: there’s no competition. When you first enter a new market, you have a chance to set the rules, define your product, and become the leader. Huang’s experience at Nvidia illustrates this perfectly.
In the early 2000s, he made a big bet on “accelerated computing” using CUDA technology. This was not an established market. No one bought GPUs for AI computing because AI computing as we know it today didn’t exist. But Mr. Huang believed it and invested, and now NVIDIA dominates the AI chip market.
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Entering a market that doesn’t exist may sound like setting up a lemonade stand in the desert, but it’s more strategic than that. Here’s why:
Without customers, there are no competitors. There is no need to compete for market share with existing giants.
Being first means defining standards and establishing a strong brand identity.
The market may be worth zero dollars today, but if you’re right about its potential, it could be worth billions tomorrow.
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You don’t have to be a tech giant to use this approach. Whether you’re an entrepreneur, a small business owner, or just someone with a big idea, here’s how to apply Huang’s philosophy.
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Think about areas in your life or industry where there are unmet needs or unresolved problems. These are potential $0 billion markets.
Don’t be afraid to start small. When Netflix started, mailing DVDs seemed like a far-fetched idea. They were solving a problem that no one knew about. Now they are a global power. An idea that seems small and niche can grow into a major industry.
Building something new takes time and patience. Nvidia didn’t become a leader overnight. It took years of investment and belief in a market that no one thought was viable. So be prepared for the long game.
Embrace your failures and learn from them. Not all zero billion dollar ideas work, and that’s okay.
Mr. Huang said: (This is) a good way to get your company thinking about how to create something for the first time. ”
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This article Nvidia CEO Jensen Huang once said his favorite was the “zero billion dollar market.” The post What it means and how it can help you appeared first on Benzinga.com
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