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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

If you found this article useful, please share it with your friends and subscribe to my newsletter!