Nowadays, the market can be characterized as being saturated. The great competition is a reason why entrepreneurs find it difficult to start their own business and follow their dreams. It may seem that every market field is already dominated by great players and there is a competitor around every corner.
The saturated market creates the impression that entrepreneurs need to come up with new ideas which have not been developed yet. Innovations are great and more than welcomed on the market, but it does not mean that every new business has to reinvent the wheel. Although there are too few domains that have not been exploited, new businesses can build their way on the market. They need to create a strong image, define it properly and to establish a clear place on the market.
The key to succeeding in a saturated market stand in the way the business is constructed, how it responds to the needs of its customers and how it adapts to the changes that can occur. Here are 4 tips to make a business stand out in a saturated market and that can help entrepreneurs understand how to construct their companies.
Coming up with a new idea that has not been developed can be a great way of starting a business and entering the market. However, this is not a must or a criterion that entrepreneurs need to fulfill. This is a mistake that people usually make when they are thinking to start a business and it can determine them to give up their ideas.
Let’s look at the following industries. The clothes industry, the coffee industry, the fast food industry, all are industries that have their own great player and other small players which appear every month. For example, in the coffee industry, Starbucks is by far one of the greatest players. However, it was not the first business that sold coffee. Instead, it learned how to sell coffee and how to offer people a memorable experience.
Other companies managed to turn their ‘disadvantage’ in an advantage. For example, in the USA, Hertz is the number one car rental company and Avis is the second. Avis used their position in constructing their unique selling proposition: “We’re number two. We try harder.” This is a strong sentence that can easily be remembered by people and gives many details about the company.
What is important to understand is that businesses need to know their advantages and their strong points. If there is an element which they can do different, that is the key to their success.
Businesses that have great relationships with their customers have a high chance of becoming successful. When people are looking for particular products or services, they are not interested only in the quality of the item, but also in the customer service. For example, Luke is a young sushi lover and has to choose between two restaurants. The first one has great sushi, but the service is poor. The second one has good sushi and great customer service. What restaurant will Luke choose? The second one.
Businesses that put the accent on offering pleasant experiences to their customers have an advantage in a saturated market. They can satisfy the needs of their customers better and increase their chances of making them loyal to their brand.
Businesses appear with the aim of solving a problem through the products and services they provide. Look at the thermos, for example. It is a special container that keeps drinks cold or hot and allows people to enjoy them, without worrying about the exterior temperature.
But even a well known and already existing product can have its problems. The thermos can be made with low-quality materials. One solution can be to make a thermos using environmentally friendly or recycled materials.
It is essential to look into the problems that exist in a saturated market. They represent a great source of inspiration for businesses and a good starting point.
A saturated market indicates not just high competition, but also a great demand from customers. People are asking for better products and high-quality services and businesses are responding to them. This is the moment when businesses need to identify and define their customer niche.
It is a great way to penetrate a saturated market. Companies concentrate on providing a product that satisfies the needs of a specific category of people. For instance, an online toy store is a relatively general type of business. However, an online toy store that sells toys made from environmentally-friendly materials for children with ages between 1 and 5 years old is a more specific business.
Starting a business in a saturated market is not an easy action, but it is not impossible. It is important to understand the needs of the market and of the people and to try to adapt to them. In this way, businesses can make their way and build strong positions on the market.
What would you do to make your business stand out in a saturated market?