Startups can't go up against well-established businesses directly; instead, they need to shake them up. They need to come up with a way to set themselves apart from their rivals. There are many ways to be successful, but I'll only talk about two: getting into a market that already exists or creating a new market.
To get into a market that already exists, you need to make a better product and sell it for less money
A new company can often fix a big problem or take advantage of a chance that big companies don't see. Enterprise only wants to serve millions of customers, but a startup can get a few thousand early adopters using those customers. Because they have fewer employees and less money to spend on capital, startups are often better at spontaneous 1:1 marketing. It's easy to talk to single customers because most businesses don't scale down as much. Once a startup has built the relationships it needs to stay alive and make products, it can use those relationships to grow and take away some of the other features that a bigger rival offers. In a business where people are sick of a monopolistic provider, this works really well.Small businesses don't have to go into a current market. They can also make a new market and grow it. For instance, you could make goods that give people access to new technologies, sports, types of video entertainment, and so on. Because it works well with other markets, this new one might make some of them useless.Businesses are very scared of this because small startups can appear out of nowhere. Businesses find it hard to guess which startups will be successful and cause them problems. Firms don't like taking risks and do best when they are left to continue working on their multi-quarter plan. It is best for startups to take advantage of the fact that they can switch their attention to other chances on the same day. Startups can change in order to succeed, and they are even told to fail quickly.
It's also important to talk about how teams work in both startups and large companies
A startup team that does well usually has more generalists on staff than a business team. There is a lot of ability at big companies, but a small startup can have some of the best contributors who have worked for a big company. Communication costs are much lower, so talented people can work hard without being slowed down by a big system.In the end, a small startup beats a big competitor because it fights dirty in ways that the big rival can't.As new companies like Amazon, Tesla, and Nothing brand tried to compete with big companies in profitable areas, they all started out in areas that weren't as profitable. Then segments that are a little less profitable, and finally segments that are very profitable. For example, it took Tesla more than 15 years to reach a market group that would pay well.Amazon began by selling books so that they could compete with eBay, which already sold everything, and would have beaten Amazon if Amazon had sold everything. Amazon finally grew stronger as a competitor and turned into a "online superstore" that sold everything from electronics to clothes to shoes. Amazon did things in stages.Tesla began by adding an electric motor and battery to a car that was already on the road. That was their first thing. Not at all like the $60,000 cars they make now. Tesla ended up selling cars that cost between $100,000 and $60,000. Plan to raise the price to $25,000 to fight with Ford.
There was still no company that couldn't make phones
Their founder was the CEO of Oneplus, a well-known phone name around the world. Their first offering was headphones that didn't need wires. After that, they talked about phones. They are also trying to expand into other types of products and create a brand experience (brand and brand user environment).Businesses that wanted to be as big as an online shop, as popular as an EV car brand, or as high-end as a tech brand all started out in a small market segment and moved on to slightly more profitable ones when they were ready. Each of them had a plan to make the best product and business possible. They had to start with a small part, though.There's no point in going head-to-head; you'll lose. Instead, you should look for chances.to set them apart. As a small business, you might be better able to meet the needs of a niche market, and that may be enough to get some of the customers of your bigger competitors.Just look at Netflix. They used to compete with Blockbuster before they became the huge company they are now. They came up with a way to make money sending movies through the mail. Some people didn't want to go through the trouble, but they were able to find enough to make a strong base from which to grow. For those people, renting through the mail was much better than renting from Blockbuster, especially since there were no unpleasant late fees. Netflix wasn't even a thought for Blockbuster until it was too late.
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