In my opinion, you should avoid sectors that DO NOT have competition. The reason for the same is that if the sector is worthwhile of pursuing, it will have players. It is also beneficial in that you may not have to spend substantial time and resources in educating customers.
That being said there are a few strategies and business frameworks you can use to win against competition. Please see below:
Market Selection & Product Positioning
-The best case scenario is that the market is large but fragmented, and has some barriers to entry like such regulatory, technological, geographical limitations which result in fewer new entrants.
-Start with something that the customers fundamentally understand but with a clear innovation that you can market around. Ideally start with cloning 80% of what competitor does and innovate on 20%.
-If you add all of the competitors' features + 1, you will have to put in more effort and competitors can easily copy that one additional feature. The best response is to have a simpler product that attacks the current shortcomings of the market leader with a different market position and different design intentions.
Beat Competition by Disruption
-Disruption is not throwing off an existing company only. It means:
Beat Competition by Blitzscaling
-Blitzscaling refers to the practice of prioritising speed over efficiency in industries with winner take all situation, where getting in early and growing fast makes all the difference.
-This is a risky exercise, and involves leveraging existing network and distribution and creating a product where people are incentivised to bring other people on board.
-Taking feedback from customers and having mentors in the industry you can discuss business with will be useful.
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