5 Reasons why entering an already developed Market might work
Here's why diving into a developed market can be a smart move for your business!
Entering an already crowded market (called: red ocean) can be a daunting task, but it can also be an opportunity to shake things up and make a name for yourself.
Here are 5 reasons why diving into a developed market can be a smart move for your business:
- Stand out or blend in:
An established market is full of competitors, but that also means there's room for a fresh face to come in and stand out from the crowd.
Or, if blending in is more your style, you can learn from the established players and perfect your craft. - Proven demand = less risk:
An established market is a clear indication that people are already interested in what you're selling.
So, there's less risk involved in starting a business in an established market. - Stability and predictability:
A developed market typically has a certain level of stability, which can provide a level of predictability for a business.
This can be especially beneficial for businesses that are just starting out, as it can help them plan for the future and make more informed decisions. - Established customer base:
An established market already has a customer base, which can be an advantage for a new business.
The business can market and advertise to the already established customer base, rather than having to build one from scratch. - Insider knowledge:
By entering an established market, a business can learn from the existing competitors and understand the target market more easily.
This can be extremely beneficial in terms of marketing and advertising, as a business can tailor its messaging and approach to better appeal to its target audience.
More of my own experiences
With advantures.co I am already "late" to the party. There are around 20 products (in the DACH-Region alone), which started offering a market place for private campspaces in 2020 (the begin of COVID).
Was I intimidated by the huge amount of competition? Yes!
Was I even more intimidated by the fact, that I heared people talking about a competitor in a camping accessories shop? Absolutely!
But did this also motivate me to do it anyway? FCK YEAH!
It motivates me, because people are already talking about a product, I want to build. This means, that people are already aware of the product categorie - rentals, like Airbnb but for campspaces.
Knowledge is my weapon
I know, that there is a market and already established products.
With this knowledge, I was able to start doing research.
So, I collected all the interesting information of my competitors and compiled huge Excel sheets.
- How is their website designed and why is it designed this way?
- How do their landing pages look like?
- Do they offer mobile apps or only websites?
- What are good and bad reviews on Google and the app stores?
- What Google keywords are they ranking for?
- How much traffic per month do they get?
These are all information which helped me to understand how I could improve an already existing product.
In summary, entering an established market can be a great opportunity for a business to grow and succeed, as long as it has a unique value proposition (UVP) and is able to differentiate itself from the existing competition.
With a proven demand, a level of stability, a customer base and an understanding of the target market, a new business can establish itself in the market and grow over time.
So, don't be afraid to jump into a crowded pool, you might just make a splash.