Competing by switching to a new market

by Ashvini on January 2, 2013 · 10 comments

in Business,Entrepreneurship

A big problem that a new comer faces in business is as follows .

“Almost every idea that I get is already taken up by someone else” or “During research I found that not only my idea is taken but the also the business has implemented the idea has already acquired significant market”. Often the entrepreneur is forced to drop the idea and look for alternative instead of pursuing the original idea he or she was passionate for .

Two ways to resolve the problem

a) Grow your market share in the same marketplace ( and still be a no.2)

b) Look for a marketplace that is unexplored and expand into it. ( and be no. 1 there)

markets

There are a few problems with this approach

  1. It is hard to discover new market
  2. It takes time to develop it

It may take a little bit of competitive analysis but this approach is better than fighting in the same market.

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{ 10 comments }

Hemanth Kumar January 7, 2013 at 4:27 pm

Hi Ashvini, Excellent venn diagram. Good business approach to capture new market. But as you said researching and finding new market opportunities is really hard, and this approach didn’t work well with all types of market. May be giving better service and quality even with premium price like Apple does, may work better. But if one find the new opportunity this method works like a rocket. At last its mind share of people any business need.
Bro now you can become pro business consultant, logic in business works.

~Hemanth Kumar

Ashvini Kumar Saxena January 8, 2013 at 4:53 pm

Hi Hemanth,

Thanks for your comment. There are multiple ways to approach business. A few idea may work in existing market, a few may open up new market. The point is we never know. Even the so called market research may not unlock the true market. The best thing that works is taking up something you like and then finding the market that is connected to it and then merging them. From there your learning and adapting will make you successful. Its never linear and we need to use multiple approaches to business success. Thanks for your compliments too :)

Daria Steigman January 4, 2013 at 7:14 pm

Hi Ashvini,

You’re right, of course, that finding that new market is the “easiest” path to market domination.

But there is also a lot of value in being in a market that’s tried and true. The key to success in this case, however, is not in reinventing the wheel — but in improving it. Do what today’s market leader is going, only a little smarter or a little better or with that twist that makes consumers heads turn in your direction.

Ashvini Kumar Saxena January 8, 2013 at 5:03 pm

Hi Daria,

I agree . I wrote an article See competition? Now jump ( into it) ! about how to work in a tried and tested market. There is definitely more competition but then the cost of testing the concept and converting people into buyer is relatively lesser.
Basically both markets have their own plus and minus and depending on our interest we can take a pick.

Thanks for your comment :).

Viola Tam January 4, 2013 at 4:45 am

Hi Ashvini,

Wow, what an insightful success tips!

I have recently consulted a business mentor who stated that researching if there is a market is crucial. Another perspective that I picked up from him is that, even though the SAME market may be saturated in a particular geographic area, there can be a NEW market in another city or town!

All these makes perfect sense. Ultimately, business is about having people needing our products or services. Competing with others and stand out from the crowd is one way. Seeking a new market is another! Awesome idea. Thanks. Ashvini!

Viola The Business Mum

Ashvini Kumar Saxena January 8, 2013 at 5:05 pm

Hi Viola,

Thanks for your comment. It may be hard to develop a new market but then the rewards are plenty. Often companies move to different countries after they have dominated one market. There will always be gaps in the market that can be exploited to create new opportunities. Glad that you liked the post :)

Lori Gosselin January 4, 2013 at 2:16 am

Hi Ashvini,
This seems like sage advice. The extra work in the new market may be in educating your audience about your product and its value. When we started Terra Cotta Pendants most people didn’t know enough about them to even search for them. Our battle was on a severe uphill incline. But now our customers tell us they found us because they were searching for them.
Whether you compete in the known market or in a different one, patience and resolve are needed. We could have given up years ago, or maybe not even tried. But I’m glad we stayed with it, building the house and decorating it (built and optimized our web site) well while we waited for the market to catch up with us!
Lori

Ashvini Kumar Saxena January 8, 2013 at 5:08 pm

Hi Lori,

Patience and resolve are a must when you are a small entrepreneur working against big companies. Sometimes holding for long is what makes a lot of sense. I have seen many small business players go from a small shop to almost dominating the cities with their niche. All they did was sit tight and listen to their customers. :)

Adrienne January 3, 2013 at 6:43 am

Boy, you’ve got that right Ashvini! It’s darn hard to find a “new market” which is one of the reasons I’ve yet to venture into creating my own product.

Most of the training programs tell you to find a market that isn’t over saturated and go into that but then that’s not where my passion lies. So what do you do?

I recently was told that there is room for everyone you just have to make yourself stand out enough to draw in that attention. You know what! I’m going to take their advice.

Happy New Year Ashvini!

~Adrienne

Ashvini January 3, 2013 at 5:55 pm

Hi Adrienne,

Its a good idea not to venture out till you can find a market for your products. But I think in your case , you have a huge following which will spread word fast about the product.
A good idea for you could be to start a survey about things, people would like you to write about. Then you can package it well and sell it. Maybe a laser sharp focus on the topic will be a great thing to do.

Thanks for your time and comments :). I wish you well

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