- There is always room for a unique business model in a competitive industry.
- The key to competition is product differentiation.
- Being a market leader means excelling in the dimensions of people, strategy, execution, and purpose.
- Excelling in the people category means businesses must have staff that incorporate a blend of drive, intelligence, and character.
- Market leaders have a strategy of offering products and services in simple yet memorable ways.
- Market leaders that have purpose connect the work they do with a larger vision that improves the world itself.
While testing an unproven market can be expensive and risky on one hand, on the other hand, there are clear signals about where opportunities lie. Hundreds of competitors can make good products. So what else is required? Here are the tips for standing tall in your competitive market and becoming a bigger fish in an already large pond.
Develop a new product
One of the most effective ways to break into a saturated or oversaturated market is by offering a product that is new to the industry or improving upon one that already exists. The goal is to offer something that will raise demand in the market and allow your business to take market share away from competitors. Be ready to look beyond what your business currently offers; you may be able to break into the industry by creating a product that improves upon one that the competition offers.
Simplify the buying process
Simplifying the buying process can attract and retain customers because it reduces time wastage. As a smart strategy, you are better off seeking additional payment methods like an e-commerce website or the use of a mobile app. Both approaches will ease your customer’s shopping experience and ultimately increase your revenue.
Focus on customer feedback
Focus on staying consistent when it comes to listening to your customers, instead of investing a lot in analytic consultations and tools. Pay attention to what your customers complain the most about and have a social media management team to track the brand mentions on social media platforms. People appreciate when they can reach and talk to your company directly and they don’t hesitate to be direct regarding all the shortcomings of your business or product. Your reputation plays a vital role in your business growth. The more effort you make to ensure customer satisfaction, the more chances you will have of gaining favorable reputation. That is why you need to listen to what your customers have to say about your work and use the feedback to fix certain issues and improve your product.
The key to competition is product differentiation
Act a ‘purple cow’. Define your strengths and what makes you different and leverage them to gain a competitive edge. Whether you’re reinventing industry standards, creating a new business model or improving a process, differentiating yourself is one of the most effective ways to thrive. To figure out what opportunities you have to brand yourself in a way that sets you apart, answer the following questions:
- Are there any needs or desires of my target market that are not currently being marketed by any of my competitors that I could market?
- Are there any subgroups within this target market that could be focused on?
- What marketing or branding opportunities are none of my competitors taking advantage of?
- What marketing tactics or branding efforts are overdone?
- Are there any promotional, branding, or experiential tactics used in other industries that are not being used in mine?
Stay on top of trends
No matter how saturated the market, consumer demand is never stagnant and keeping your finger on the pulse of the industry keeps you relevant and poised for success. Smart businesses act on these trends and update their inventories accordingly. Always keep an eye open for market changes and opportunities that may allow you to outperform your competitors. Customers appreciate businesses that anticipate their needs and provide them with surprising products or services that they weren’t even aware they needed.
Lower your prices
In order to gain a competitive edge, it is of absolute importance to lower your prices. If your products are clearly superior, it is okay if they cost more. However, you need a new plan if you offer the same product as your competitors. On the other hand, your prices cannot drop forever, because at one point you will start losing money.
Offering incentives and value-added services is another smart strategy to consider when preparing to enter an oversaturated market. Are you offering frequent buyer programs, reward levels, or dedicated personnel? Not only does adding value attract a larger audience, but it also strengthens customer retention, which leads to long-term growth. Customers want to ensure that they are getting their money’s worth, so they’re always on the lookout for the best and most cost-effective solutions. If they perceive more value in your goods than your competitors’, they are likely to pay more for your services/products. By offering small perks to loyal customers, for example, you encourage future purchases, generating growth.
Focus on having a sales culture
Are you by the book or does your company have a signature style when it comes to sales? How do you treat your customers differently from the way your competitors treat them? Establishing your own culture ensures your company will stand out.
Penetrating an oversaturated market poses its own unique set of challenges and rewards. With each passing day, new businesses emerge, making the marketplace more crowded than it already was. As such, staying competitive and relevant may seem borderline impossible. But, where most people see a roadblock, savvy entrepreneurs see an opportunity. Highlight what makes you different, always look for new customer needs and demands and ensure that your products deliver high value, and you will gain a competitive advantage.