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Level of competition (Monopoly or competing with fewer people)

Bhanu

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Hi All ,
I recently read a book called Zero to One by Peter Thiel . As per him we should enter a field where we can establish a monopoly . In M J's book we read if there is competition we should skew values and make ourselves dominant in our business. My question is what should be the level to competition before we enter a business ? Do we enter a field in which there is no competition ? Enter a market which is saturated but we have confidence that we can still dominate it ?
I think there is a thin line between having competition and entering a saturated market . How to choose or make better decision .
 

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Kak

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Hi All ,
I recently read a book called Zero to One by Peter Thiel . As per him we should enter a field where we can establish a monopoly . In M J's book we read if there is competition we should skew values and make ourselves dominant in our business. My question is what should be the level to competition before we enter a business ? Do we enter a field in which there is no competition ? Enter a market which is saturated but we have confidence that we can still dominate it ?
I think there is a thin line between having competition and entering a saturated market . How to choose or make better decision .
I’ve never read Theil’s book, but I love businesses that fit, at some level, the description of monopoly. Good luck keeping one long term though.

I’ve operated in all three scenarios: no competition, formidable yet beatable competition and groupthink saturated markets where you basically can’t expect to win.

Competition absolutely needs to be a consideration to the market environment. Run your numbers with the proper considerations and if it makes sense, make it happen.

Saturated markets can blow me though.
 

Kak

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Blue ocean strategy is a good read on the topic.

What you shouldn’t do though is let this analysis consume you. Just get the info, be calculated and move forward.
 

socaldude

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I loved that book because it was very contrarian and insightful.

I think what peter meant was to go to zero to 1 you have to know something that 99% of people don't.

Hence the interview question he always asks: "what is something you believe in that 99% of people would disagree."

Hence you slash 99% of competition.

"The best entrepreneurs know this: every great business is built around a secret that's hidden from the outside."-peter thiel, zero to 1.
 

AlessioLC

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I do think you could get a powerful impact in a very crowded field if you bring enough value to get the 'all eyes on me' effect. If not i would not tbh.

Exemple : In Paris, we got more than 200 italian restaurants, not that great tbh because most of the products were not fresh from Italy, but then two entrepreneurs decided to brake the rule and made something big : They directly import from Italy and each 2 days, 2 trucks make back and forth to bring fresh products and unique wines..and they have recruted 200 italians directly from Napoli offering them a job in Paris in exchange of the best of the italian food knowledge.

They made a freaking big impact (r.f : Obermamma, paris) and i'm italian, this is the same quality as in Italy.

I would enter a between both field like most of us.

For the no competition, it's the game, either you grow something from nothing (no competition > no certainty about the market) either the business die and if there was no competition, it was for a reason.
 
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Kak

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I loved that book because it was very contrarian and insightful.

I think what peter meant was to go to zero to 1 you have to know something that 99% of people don't.

Hence the interview question he always asks: "what is something you believe in that 99% of people would disagree."

Hence you slash 99% of competition.

"The best entrepreneurs know this: every great business is built around a secret that's hidden from the outside."-peter thiel, zero to 1.
For this... I added the book to my read list. That’s great insight.
 
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Bhanu

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Hey Guys wanted to provide update .I entered a kind of saturated market this time .
Here are my learning's :
Positive :
1. If competition is there that means there is a clear need . So if you are good people will buy your product.
2. You have multiple platforms where you can promote yourself . In my case there are already FB pages dedicated to the exam I am providing material for.
3. You can learn from your competition.
4. Currently I have around 62 potential buyers on my site and I am expecting this number to increase.
5. Sales have been not that great though . I am still marketing my product with whatever means I can .
6. Having a dedcated FB group with you as admin is fantastic way to market . There are groups in which there are 55000 aspirants . Imagine when they launch any product they have 55000 potential buyers . I am going to learn the art of using social media to my advantage .
7. Getting blessing and praise from aspirant is as good a feeling as getting money in your account . Check our the doc attached.

Negative :
1. Aspirant go for established names as they are more confident in their product.
2. Marketing your product is bit tough as aspirant are flooded with other players .Sometimes they get really irritated and call you names lol .
3. It will take lot of hard work to reach at similar level to established names (I am not shy of putting in the effort ..in fact I enjoy it.These days I cant sleep as I am so excited to interacts with aspirants and helping them.
4. Number of buyers get divided so less chance for you to earn profit .
5. I feel I am lacking in marketing still . Creating product and marketing are both equally important . Learning ..

Now the question .
Similar to the business I am doing currently there is one more business which has not been touched. There are no competitors . I am in a fix though :
1. My gut feeling says to continue with my current business(business 1) and include more products as I go forward(at least 1000000 potential aspirants) .(market is saturated though) . My mind says the other business with no competition is better .
2. Business with no competition(business 2) is not tested but I firmly believe it will succeed because there is huge need(at least 2000000 potential buyers) and no one is catering to it currently .
3. Business 2 would be tougher than business 1 .Reason business 1 I am already doing .Business 2 I have never .
4. I am better prepared for Business 1 than business 2 for reason no 3.
5. Business 1 is my passion business 2 has huge growth potential .(I agree with M J here though .)
6. Business 1 cost me almost nothing. Business 2 will cost me around 5000 dollars.

Any suggestions guys ?
 

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Bhanu

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Oct 23, 2017
142
247
158
33
Hey Guys wanted to provide update .I entered a kind of saturated market this time .
Here are my learning's :
Positive :
1. If competition is there that means there is a clear need . So if you are good people will buy your product.
2. You have multiple platforms where you can promote yourself . In my case there are already FB pages dedicated to the exam I am providing material for.
3. You can learn from your competition.
4. Currently I have around 62 potential buyers on my site and I am expecting this number to increase.
5. Sales have been not that great though . I am still marketing my product with whatever means I can .
6. Having a dedcated FB group with you as admin is fantastic way to market . There are groups in which there are 55000 aspirants . Imagine when they launch any product they have 55000 potential buyers . I am going to learn the art of using social media to my advantage .
7. Getting blessing and praise from aspirant is as good a feeling as getting money in your account . Check our the doc attached.

Negative :
1. Aspirant go for established names as they are more confident in their product.
2. Marketing your product is bit tough as aspirant are flooded with other players .Sometimes they get really irritated and call you names lol .
3. It will take lot of hard work to reach at similar level to established names (I am not shy of putting in the effort ..in fact I enjoy it.These days I cant sleep as I am so excited to interacts with aspirants and helping them.
4. Number of buyers get divided so less chance for you to earn profit .
5. I feel I am lacking in marketing still . Creating product and marketing are both equally important . Learning ..

Now the question .
Similar to the business I am doing currently there is one more business which has not been touched. There are no competitors . I am in a fix though :
1. My gut feeling says to continue with my current business(business 1) and include more products as I go forward(at least 1000000 potential aspirants) .(market is saturated though) . My mind says the other business with no competition is better .
2. Business with no competition(business 2) is not tested but I firmly believe it will succeed because there is huge need(at least 2000000 potential buyers) and no one is catering to it currently .
3. Business 2 would be tougher than business 1 .Reason business 1 I am already doing .Business 2 I have never .
4. I am better prepared for Business 1 than business 2 for reason no 3.
5. Business 1 is my passion business 2 has huge growth potential .(I agree with M J here though .)
6. Business 1 cost me almost nothing. Business 2 will cost me around 5000 dollars.

Any suggestions guys ?
Guys any suggestions please....
 

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