Saturated Market, and pulling from the pack.

[kurtyordy]

I was recently searching for templates for a site I am thinking about. In the process, I came across about 20-30 different people on freelance, elance, etc posting requests for a similar site to be built.

Currently I know of 2 sites out there with growing appeal, but nowhere near a lock on the industry yet.

So my question is, when do you determine a market is too entrenched to enter? For example, I would not think about starting an online bookstore, Amazon is too entrenched, and there are enough established players to pick up there leftovers, but there are other markets that are less established. For example prosper.com, yes they are the leader, but the market is still young and flexible. So what should I consider when determining whether or not to try to compete?

Also, if I wade in, what can one do to pull out from the pack? To become the google so to speak?

 

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[yveskleinsky]

So my question is, when do you determine a market is too entrenched to enter? For example, I would not think about starting an online bookstore, Amazon is too entrenched, and there are enough established players to pick up there leftovers, but there are other markets that are less established. For example prosper.com, yes they are the leader, but the market is still young and flexible. So what should I consider when determining whether or not to try to compete?

Also, if I wade in, what can one do to pull out from the pack? To become the google so to speak?

The answer to your question is going to be relative as it will be in part based on tolerance to risk and how much of a project you are looking for. Look at companies like Papa Johns, Red Box, Netflix and Google. All of these companies started out in a saturated market where there was already a dominant player, and all of them are now on top. Each found a hole/need in the market and each executed their idea based on filling that need. Papa John's has better ingredients, netflix has no late fees and delivers, red box is convenient and great for quick impulse rentals and google organizes data better.

My .02 is that if you see a need in the industry focus on filling that need and don't worry about what the competition is doing. Don't get me wrong, keep an eye on them, but don't let other players entering the market scare you off. ...Personally, I like markets that are young and flexible, to me that is where the opportunity is. If the market is at a point where it is still very fragmented and undefined, then it is ripe for the pickin's.

 

[Jonleehacker]

Saturated market is a state of mind.

When Apple decided to enter the mp3 player market, to most companies it would have pointless because the market was saturated, to Apple it was almost routine to move in an dominate since they had something special to bring to the table.

So you just need to be honest about what you can bring to the market and how hard you're willing to work to be successful.

Honesty is the key word. For me I'll build an affiliate site for a product with a goal of $20-$50 per day. I don't aim for changing the market in any big way, just using my skills to provide some value in exchange for a slice of the pie.

In a market where I know I can add more, I'll shout higher, like creating my own products, but it all comes down to how much I am willing to contribute. If you're willing to contribute more than anyone else, then you can own any market.

If you're looking for a market purely based on whether or not it will be easy to dominate it, then you're off in the wrong direction.

 

[kurtyordy]

The answer to your question is going to be relative as it will be in part based on tolerance to risk and how much of a project you are looking for. Look at companies like Papa Johns, Red Box, Netflix and Google. All of these companies started out in a saturated market where there was already a dominant player, and all of them are now on top. Each found a hole/need in the market and each executed their idea based on filling that need. Papa John's has better ingredients, netflix has no late fees and delivers, red box is convenient and great for quick impulse rentals and google organizes data better.

My .02 is that if you see a need in the industry focus on filling that need and don't worry about what the competition is doing. Don't get me wrong, keep an eye on them, but don't let other players entering the market scare you off. ...Personally, I like markets that are young and flexible, to me that is where the opportunity is. If the market is at a point where it is still very fragmented and undefined, then it is ripe for the pickin's.

Thanks, that is kind of what I was thinking.

Saturated market is a state of mind.

When Apple decided to enter the mp3 player market, to most companies it would have pointless because the market was saturated, to Apple it was almost routine to move in an dominate since they had something special to bring to the table.

So you just need to be honest about what you can bring to the market and how hard you're willing to work to be successful.

Honesty is the key word. For me I'll build an affiliate site for a product with a goal of $20-$50 per day. I don't aim for changing the market in any big way, just using my skills to provide some value in exchange for a slice of the pie.

In a market where I know I can add more, I'll shout higher, like creating my own products, but it all comes down to how much I am willing to contribute. If you're willing to contribute more than anyone else, then you can own any market.

If you're looking for a market purely based on whether or not it will be easy to dominate it, then you're off in the wrong direction.

A came to this because I saw the two sites that are established. I like the idea, but for a few reasons I would never use them. So then I thought, what if I offered almost the same thing, but addressing my concerns. These thoughts led me to my search which led me to finding out that there are many potential entrants into the field.

 

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[rocksolid]

I am in the same boat. I had what I thought to be a great idea until I discovered a few other websites out there already doing it. So I thought what could my website do or offer that they are not. How do I build a better bigger website. Well after giving it some thought I have decided to build a tri-site ( you heard it hear first ) my site is going to combine 3 like entities into one site so my customer will have more flexability and a reason to use me and not my competition. So.... what can you offer that your competion is not offering?

 

[CVentures1B12]

Saturated...schmaturated...I agree with Jonleehacker with the comment that a Saturated market is a state of mind. It is all about the business plan, marketing, advertising, and the product (among other things). Great example, previously stated is Apple.

One point that I love to look at everyday is there are (according to the 2008 world factbook) 353,015 new customers born each day and 146,357 customers die each day. That leaves me 206,658 new customers to reach out to EVERY DAY! Tell me now that a market can be saturated...

Haha, ok, so that can be a bit of an extreme example...but somewhat true. Also, I believe that if you market your product/service well, back it up with a great customer service dept, accurate operations dept, and a general honest company demeanor and reputation, you will be fine.

Think about how many search engines were on the scene when Google came into the picture...Altavista, Yahoo, MSN, Ask.com, HotBot, Webcrawler...the list goes on. And now...I can't go a day without going to Google.

Nice little blog, along the same lines...
It’s The Economics, Stupid - Why A New Idea Isn’t The Key To Entrepreneurship | Business Pundit

 

[kurtyordy]

Saturated...schmaturated...I agree with Jonleehacker with the comment that a Saturated market is a state of mind. It is all about the business plan, marketing, advertising, and the product (among other things). Great example, previously stated is Apple.

http://www.businesspundit.com/its-t...-a-new-idea-isnt-the-key-to-entrepreneurship/

I forgot to address this. Apple entering the mp3 market is completely different than Kurt entering it.

I could try to go head to head with Amazon, but lets be honest, Vegas odds makers would be giving great odds against my success. So there are some markets in which the small guy is very unlikely to dominate due to saturation. Not to say these markets could not be conquered. Apple could cut into Amazon due to their rabid following and there outlets already in place.

 

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[kurtyordy]

Think about how many search engines were on the scene when Google came into the picture...Altavista, Yahoo, MSN, Ask.com, HotBot, Webcrawler...the list goes on. And now...I can't go a day without going to Google.
http://www.businesspundit.com/its-t...-a-new-idea-isnt-the-key-to-entrepreneurship/

very good point about google, which is what keeps me plugging on. The google phenom amazes me. I never yahood anything, msnd anything etc, but I sure do google stuff.

 

[lobster]

nice post, its very helpful. this gets me thinking in the right direction. thanks for posting this topic.

 

[Inphinity]

Hmm, ok I'm going to chime in here with limited experience, so please bear that in mind.

Some markets may seem saturated - and honestly, if all you're going to do is a mediocre effort to copy what others in the market are doing, I don't think it's worth the effort in most cases. But, in even the most saturated market, if you can find a positive point of difference - can you provide the service more efficiently? Can you make it easier for people? Something that , even though there's 732 other companies providing a niche service, makes the people who want that service, come to you. And then, can you keep ahead?

I'll use Google, as it's already been touched on, to highlight what I mean. There were already dozens of major players in the search engine market when Google came into it. But Google came, they did it better - they had a very simple page: fast loading - lots were on dialup back then. clean - easy for users to see what they need (one box to type what you're searching for, and a search button. Then the I'm Feeling Lucky button, just for something a bit fun). It wasn't daunting to look at the google page. And the way it presented it's results was the same. Simple, clean, and clear for you to see the relevant results. And it sorted results much better than most of it's rivals. But honestly, I think a large part of their success is the speed and user-friendliness of the site. They would've done well (not as well, but still well) if they'd made no improvements in terms of actual data sorting than their rivals, simply because they made it EASIER and NICER for people to use. You're not bombarded with crap when you go to the Google homepage the way you are (and were, especially back then) on others.

So, if you can get into a market - any market - and do SOME part of the service/product/whatever, better than the rest and stay there - don't think when you get a decent market share you can just sit back and stop caring - then imo you can take a foothold in any market. Just do it better. Better than before.

 

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