See competition? Now jump ( into it) !

by Ashvini on July 17, 2012 · 6 comments

in My Personal Thoughts

People are often scared of getting into a market that is too competitive. In this kind of market, a few big companies own the major share. The chance that a newbie can make inroads is quite less unless they have enormous resources at their disposal.

Competition is not bad

It is often quite impossible to get the leader off from its spot. They will have years of experience and a lot of marketing budget. An entrepreneur with far lesser resources will be at disadvantage here.

However a competitive market is not bad at all to start investing your time and money it. Look at a few advantages.

  • It is well researched
  • One already knows what works and what does not
  • There are buyers for goods
  • There are potential opportunities for partnership
  • The faster the churn the more opportunities open up.

Thus a competitive market often provides a lot of room to grow to entrepreneurs who do not have enough money to research the market themselves before starting out.

Most entrepreneurs though make a mistake when they start aping the leader. Only leader may be good at what it does and that is why fighting it with smaller resources is not going to yield any result.

To enter into a competitive market, one needs

  • A different approach to doing something.
  • A path that does not directly lead to conflict with the market leader
  • Picking up things that the market leader has left behind because
    • there is not much profitability for the leader in those segments
    • it is neglected just by chance
  • Copying the leader’s processes/products but by evolving it into a different form/price/segment.
  • Choosing a really narrow market to start with

Mobile market in India for example is a highly competitive landscape dotted with giants like Nokia, Samsung, and Apple etc. However there is a large presence of smaller players who have packed a lot of features into their units (such as social media integration, dual sims, games etc.). They are far cheaper than what the biggies have been offering.

That means being in a competitive market is not bad at all provided you can define your segment and stand strongly in it.

About The Author

{ 6 comments }

Lisa July 23, 2012 at 3:38 pm

Interesting take on it – I manage 2 retail sites and one that is not doing as well has a ton of competition. Makes me think more. Thanks!

Ashvini Kumar Saxena August 3, 2012 at 4:35 pm

You are most welcome Lisa. Thanks for your comments.

JanB July 18, 2012 at 2:07 am

We have an expression here in Holland that goes like (translated) “Better to steal something good than to invent something that’s bad”. You know what I mean.
One thing you have to be aware of is trademarks or copyrights. International law is not always very clear about those subjects.
When the energy is still there, jump on the train! I like that. I love competition!

Ashvini Kumar Saxena July 23, 2012 at 2:31 pm

Hi Jan,
Yes sometimes using the existing wheel makes a lot of sense. Even if copying is there ( legally) still there needs to be an element of uniqueness. Just blind copy may not be that useful.

Lori Gosselin July 17, 2012 at 9:50 pm

Ashvini, there is always such good information here! I never thought of that aspect of competition before – that the market has already been validated and the energy is already there! You Rock my friend!
Lori

Ashvini Kumar Saxena July 17, 2012 at 10:41 pm

Thanks Lori. I am glad that you liked it :). I hope you will find new markets to conquer .

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