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Lesson #3: “Table selection is the most important decision you can make”

Article Overview: Hsieh is not a professional poker player, but he taught himself early on the basic rules and principles. Today, he can play the game with the best of them.

Lesson #3: “Table selection is the most important decision you can make”

Hsieh is not a professional poker player, but he taught himself early on the basic rules and principles. Today, he can play the game with the best of them. But poker for Hsieh is about more than just playing a game. The rules it offers up and the strategy it takes to win has taught Hsieh a lot about what it takes to win in the business world as well.

"Table selection is the most important decision you can make," he says. "It's okay to switch tables if you discover it's too hard to win at your table."

To that end, Hsieh says Zappos has been able to stay ahead of the game by evaluating market opportunities and only seizing those where he knows they can win. "If there are too many competitors - some irrational or inexperienced - even if you're the best, it's a lot harder to win."

For Hsieh, pride cannot play a factor. If he finds himself at a table than is serving up more than he can handle, he simply moves on to the next.

Poker also taught Hsieh a thing or two about marketing and branding. The main lesson?

"Act week when strong, act strong when weak," says Hsieh. "Know when to bluff." That is not to say that Hsieh always overplays his hand, but he does make sure that his competitors do not get a hold of his weaknesses. Putting forward a strong and united front is key for any business to survive in a competitive industry like his.

To that end, Hsieh also says it is important to "help shape the stories that people are telling about you," in order to control your brand. When done right, you actually have much more control over your own image than you might realize.

"For Zappos, we just want our brand to be about the very best customer service and customer experience, which is why we've stayed away from the ‘easy money' of having other third party sellers on the Zappos.com site," says Hsieh. "Because we can't control the customer experience as well when dealing with third party sellers."

That, he says, is where he differs from the likes of Amazon, which many considered a competitor of Zappos early on.

"While it's true that we're in many of the same product categories, we don't really think of Amazon as a competitor," says Hsieh. "Wal-Mart and Nordstrom are both in many of the same product categories, but nobody thinks of them as competitors. Amazon is really more about being a market place where you can find the best value. There are many third party sellers offering products on Amazon.com."

Having a clear grasp of the table at which he is playing, the other players seated with him at that table, and how those players perceive him has allowed Hsieh to win not only in the poker rooms of America, but in the business world as well.

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Article Tags: game, lesson 3, professional poker player



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