3 Ways Your Business Can Disrupt the Well-Established Industry it is Attempting to Enter
According to Kauffman startup index data, 550,000 entrepreneurs start their own business every month. Unfortunately, 20 percent of these new business fail in their first year of operation and only 50 percent exist into their fifth year. Overall, these bleak numbers indicate that most market sectors are prevalent with competition. The good news is that there are ways for you to navigate through all of the obstacles of a crowded market. Here are three proven methods to ensure that your startup can still succeed in a well-established industry.
Put the Power Back in Your Customers’ Hands
A company’s customer base is the driving force behind its success. However, the power of big data and the distrust surrounding high level managers have made customers feel excluded. This statement is corroborated by Ipsos Connect and Trinity Mirror Solutions, which finds that 42 percent of consumers claim to distrust big name brands.
This frustration is what has allowed companies like Uber and AirBnB to thrive. By putting power back into the hands of the consumer, the aforementioned companies were able to prosper. They gave their customers more options and created a market-review system around drivers, hosts, and users which encouraged better quality service. Ultimately, by providing consumers with more power and freedom your business has the opportunity to attract a larger customer base away from more established companies.
Target an Under-Served Market
Every business has a target market. As time progresses and consumer demand changes, this market alters as well. One example of this process is Blockbuster when they refused to convert to a streaming service. The interests of their customers were changing, but the CEO was not willing to adapt.
Ever-changing target markets are especially prevalent in today’s social media dominated environment. For example, Facebook and Instagram are the pillars of social media across the world. However, only nine percent of teens list Facebook as their preferred social media engine. As a result, social media platforms such as Monkey have been able to alter their business plan to meet the needs of the younger generations. Successful startups are able to identify where consumer interests are not being fulfilled and change accordingly. If you can find a market big name competitors are neglecting your company has a great chance of prosperity.
Reverse Your Market’s Typical Business Model
When an industry is large and well developed, a single recurring business plan often arises throughout all of the companies. This trend is especially evident in social media. For most social media platforms, you can sign up for free, but must sacrifice your personal information to advertisers. Consumers are not supportive of this subscription method. In fact, according to the Pew Research Center, 91 percent of Americans surveyed did not support how their personal data was collected online.
This negative consumer response creates gaps allowing new startups to enter the market. For example, DuckDuckGo is a search engine increasing in popularity because it does not profit from searchers’ data the way Google, Bing, and Yahoo do. Overall, some of the most successful startups have been able to identify areas of consumer dissatisfaction. As a result, they can adjust their business plan accordingly to better fit the needs of potential customers.
Conclusion
You might feel uneasy about starting a business in a crowded market. However, there are still ways to conquer the obstacles in such a situation. By employing the aforementioned three methods you will have the tools necessary to take your company to the next level.
Source
Miller, L. (2019, July 17). 3 Proven Ways Your Business Can Disrupt That Well-Established Industry It's Struggling to Enter. Retrieved July 18, 2019, from https://www.entrepreneur.com/article/336695