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.
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.