Christopher Columbus
Christopher Columbus is credited by many with discovering America. His benefactors claimed he got there first and convinced the right people he did. This persuasion has immortalized his name in the history books purchased by the schools we attended in our early years.
Companies who innovate or are the first to bring new ideas (product or service) to market may be considered the Christopher Columbus of their market. With that impression, they can grow and expand the marketplace and maintain superiority over the competition. You don’t have to think long about products that reached the market first and hold market share because of their inaugural status. There is Xerox, BandAid and Kleenex.
Another way to achieve Christopher Columbus status and market power is to take a product, innovate some new features and carve out a new market niche (segment). The Apple iPod took the personal music player, with original features, and is pounding all competition with its commanding market share. The Sony Walkman had the market share 25 years ago; today it is Apple in the personal music device niche.
Carving a new market niche for your products has been done successfully by Ben & Jerry’s ice cream and Snapple Ice Tea. Products in niche markets become such a threat to market leaders; they swoop in and buy the niche brands to protect their dominant market share. Look around for examples of products or services that are in vogue and become a student of their market and game plan. The goal is for your business to create a special niche that you can do better than anyone.
Often forgotten, or at the very least overlooked, is taking a look at your competition. It does not matter what sector of the economy your business is in. You certainly have competition and market trends. There is at least one way to create a niche to become more valuable to the market. You should be able to quickly make a list of at least 10 competitors who do what you do. Now the work begins. You must analyze them and look for the hidden niche.
HOW TO DO IT – ANALYZE THE COMPETITION – SWOT*
Start out by looking at your company’s STRENGTHS from your own and your customer’s point of view. Then look at your WEAKNESSES from your point of view and your competitors’ perspective. Third, uncover the areas in your target market that offer you growth and expansion, OPPORTUNITIES. It could be changes in the law, technology, the social climate or the trends of the local economy. Finally, while it is thoroughly repulsive, we have to look at THREATS to our business. Businesses that prevail look at the obstacles like the soft economy, shifts in market demographics, competition setting up shop across the street and prepare to address these threats. When you finish the list for your company, turn the spotlight on your competition and do the same analysis. This close scrutiny will bring about the best opportunity for discovering a market niche to exploit.
*SWOT is the acronym for STRENGTHS, WEAKNESSES, OPPORTUNITIES and THREATS.
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