When we are planning to establish any business we need to put a plan and strategy about the way that we are moving away from direct competition and create your own model of that business. Is this foolish, or we need to tell ourselves there always small niches that need to be filled in this market.
When I sit with many of friends who have business, actually small business and ask them about their competition, they usually tell me they are offering a similar service to their prospective customers or clients, as they do. And that is just one of the challenges they are competing against.
I would say, to market your business successfully, you need to address your niche in all the areas of competition. You need a marketing strategy, to ensure people know how good you are, before they buy from you or hire you. You need a marketing strategy, to make it easier for them to switch to you than to stay with their current, under-performing provider. You need a marketing strategy, to increase your visibility to prospective clients and customers.
I don’t say just because there is no one selling a particular product or service doesn't mean it's automatically a good idea to try and address your business to that direction. Conversely, a competitively crowded industry shows that demand exists, as well as a viable market. The key to business success isn't finding an empty field, but defining your company narrowly—no matter how crowded a marketplace you're entering.
In this article I would like to talk about how to differentiate in the market and grow a successful business. There are many ways you can differentiate your business, for instance, how Starbucks revolutionized the coffee shop by selling an experience rather than just a beverage. In educational sector American University of Sharjah (AUS) now is a leading educational institution in the Gulf and region. In web media I would suggest Mashable, the company didn’t reach millions of people by accident. They are increased their traffic to millions of visitors.
Therefore, I would strongly say no matter how crowded a market is, you should never allow it to intimidate and discourage you from achieving your goals. Each industry, regardless of how crowded it may seem still has room for one more entrepreneur as long as you are willing to invest and work harder to succeed.
So you should not relax in any small achievement. Keep working towards being a trendsetter in the industry, park away from red ocean and you will stand out from the crowd. Even if you are offering a common product or service like my friends, you should find ways of redefining or creating a model that make it afresh.
Red Ocean and Blue Ocean
Today, it is more difficult in any market to create value in red oceans, but Blue Oceans will eventually become red, as the industry slides into maturity and structures become less flexible. In red oceans, value is limited, as direct competition among players inhibits any exceptional creation of value. Only the best organizations are able to generate value in Red Ocean. I would therefore say any business must create consumer demand and exploit untapped markets, (remember my article about "Position Mapping" in Marketing!). According to this strategy, companies are required to ‘create’ a demand for a particular product and as long as there is a need for it from consumers and the companies continue making profits, more vendors will arrive on the market to serve that need. Why, because everyone is able to break even and continue in the market.
By Blue Ocean you invent and capture new demand, and you will find a new way to offer your customers a leap in value while also streamlining your costs. What are the results? I assure you for handsome profits, speedy growth—and brand equity that lasts for decades while rivals scramble to catch up.
Come up with creative ways of serving such a significant portion of the market. This works well if you find the right niche and you are a latecomer in a market that is already crowded.
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