Understanding The Importance of Competition
Friday, January 16, 2009
Every entrepreneur out there is trying to start his own business and has tons of ideas why his venture is the best with numerous reasons, why it would never fail. A small bunch of aspiring entrepreneurs have the mindset where they believe, “They would succeed in flying colors since they face, or have no competition”.
The truth is “A business is not worth venturing into if you do not have competition”. Competition is the only way to evaluate the existence of the market that you are trying to sell to. There are 6 billion people on this planet. Assuming that no one else has seen potential in the business that you are trying to establish is quite dumb.
Summarizing what Guy Kawasaki says in the ‘Art of the Start', The best venture is where you have evaluated your competition and worked out smarter ways to leap frog them. It’s smarter to have someone else make the mistake and you learn from it. This would give you the advantage to zip past them successfully. Look at the mobile phone industry, Motorola was the first company to launch the mobile phone, not Nokia or Apple. Compare the market that Motorola has captured and that of Nokia and Apple.
The lessons learn't here, for any want to be entrepreneur are
1. Know your market well
2. Understand your Competition better
3. Innovate by learning from the flaws of your competition.
For more entrepreneurial talk and ideas visit the Home Page of my blog
Copyright © Dennis D Maliekal
1 comments:
It is extremely interesting for me to read that blog. Thanks for it. I like such topics and everything connected to them. I definitely want to read a bit more soon.
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