Starting off a new business in an already competitive market is in no way an easy feat to accomplish. However, it isn't impossible either. Competition can be a good thing as high competitiveness in a marketplace usually equates to a high demand for those products and services. So how do you make it as a new business in a highly competitive market?
Research Your Competitors
This is a factor that most business owners tend to take lightly. Knowing your competitors will allow you to take on the market that you both share successfully. Conducting a full in-depth analysis of your competitive landscape is a must for those who wish to start a business within a competitive market.
If you don't do research, then it is possible that you could fall into similar traps as your competitors once did. An example would be how most home stores used to keep appliances in stock, and now they don't. The reason being that major grocery outlets today have the buying power and stock to supply the masses at low prices.
Because of this, home stores just stick to furniture and bedding as they cannot compete with the low bulk prices of the big stores. You could start a home store and simply unknowingly stock appliances just so that your store can stand out. However, you will eventually learn that appliances don't work in your market. You could be forced into closing down that entire department.
This is an expensive lesson indeed and should be avoided especially when just starting out a new business. Start off with simple research before any product decision is made. Then go into more in-depth paid research later on. Having as much knowledge as you can on your market means that you could look for gaps in the market to fill in with a superior product.
Create a Market Advantage for Yourself
It is possible for you to still create an advantage for yourself even within a highly competitive market. Understanding your competitor's products is imperative if you wish to find out what those products have to offer in your market.
To understand competitor products, you will also begin to find gaps in the market which their product does not cover. You can then create a product that can fill that gap while serving other normal functions as well. This can make your product seem resilient in a saturated market.
Modern Competitive Smartphone and Motorcar Markets
An example would be the highly saturated smartphone market. Each manufacturer studies each other very carefully in that highly competitive market. Two different manufacturer phones can have the identical specs, but a simple feature such as wireless charging can split the competition right apart.
Manufacturer A noticed that manufacturer B had an industry-leading product with a great camera and specs. Manufacturer A improved their product to have similar specs. They then also included wireless charging which automatically made their product superior. They even highlight this in their marketing.
Try to build a product that can compete well with your competitors, then add a defining service or feature that can place your product ahead of the pack. Motorcar manufacturers do this all the time. That is why you see constant innovation in automotive technology.
Don't Get Discouraged By Competition, Let It Inspire You
After conducting thorough research of your competition, you will have a better understanding of their products and infrastructure. It can become intimidating to compete with an established brand that already has a well-developed product or service. You may even feel discouraged to trade in a similar market with these businesses. Especially if you are just starting out.
The truth is, your competitors have been in the game for a long time and have had sufficient time to develop their products. They have also spent the relevant time and money on developing their business.
You should not be comparing your startup to a well-established business. They too were a new business before they progressed to where they are now. Don't stress to make every aspect of the business perfect before you begin. Take the required steps to achieve your goal. Be patient, and you will get there too.
Get Your Product Out There
You may have a new and revolutionary product or service, but it won't mean much if you can't get that product into the hands of your clients. Telling people how great your product is isn't going to be enough to guarantee its success. You must be confident enough in your product to be able to distribute it to as many people as possible successfully.
If you did take the time to research your market and develop your product, then you should be confident enough to release it to the world. It is far too familiar for a company to develop a new product and market it heavily to the world, only distribute the product after a very long time to customers.
This causes customers to lose interest in the product as they are only physically seeing the product months after its reveal. Again, in the world of mobile smartphones, many times has a manufacturer held a launch event, only to deliver the phones months later to stores.
Those who do it right are the companies that make the product available days after launch. If you cannot deliver to specific areas, states, or countries, don't market to these places until you are ready. Your competitive research analysis would have given you an idea of the correct distribution channels and areas. Take action as soon as you have advertised to your target areas.
A competitive analysis is an evaluation of your competitor's strengths and weaknesses within your business’ market. A competitive analysis is crucial in assisting you in locating new customers in an already saturated market. This is because it helps you to find out the potential pitfalls and advantages within a market. It is essential you conduct a competitive analysis before you take on a market with a new product.