How To Establish Your Online Business In A Competitive Market

When it comes to establishing your online business in a highly competitive niche/market, there are only 2 ways to face ‘the giants’ who dominate the market you have choosen: beat the giant or befriend them

Beat the Giant

You might think it sounds crazy that you are able to beat a huge competitor while you are just a newcomer.

Well, I say you’re right if you were entering a ‘brick-and-mortar’ market. Why? Let me explain to you.

In a physical industry, big firms have advantage over small firms due to the ‘economic of scale’ which allows them to have a huge amount of production at a low cost. This gives big firms a power to reduce the cost of their products, and when the big firms do reduce the cost of their products, the small firms are also forced to lower their products’ prices as well in order to not lose consumers. However, small firms can only lower prices of their products to a certain level where they cannot lower anymore or they will start making a loss and eventually go bankrupt. Because of this, it is relatively easy for big firms to run smaller firms out of the competition simply by outlasting them.

However, the law of ‘economic of scale’ does not apply for online business as it involves the selling of  digital products where there is no cost to mass produce the products. We only spend money for product creation the first time, and then any copies we make of it to sell are then of zero cost to us as it just involves copy and paste of the digital product.

So, how should you go about beating the giant?
There is one surefire way to beat the giant competitor in order to dominate the market, and that is to make yourself, your products and services more attractive than the competitors services or products.

Since you are a newcomer, you have not made any impression on your potential customer. This can be used to your advantage if you give off a good image of your business the first time round. To do this, you have to create a good introduction of your products or services through various ways like:

• Create a “Unique and Irresistible” product

  By creating a unique product/service which has a special advantage over your competitor product/service, you are making yourself more attractive to potential customers than your competitor.

• Create a “Unique and Irresistible” offer

  You may do so by giving a special introductory promotion  price on your services or products. In fact, you might even give away your services and products to a limited number of people and then later ask them for a honest opinion and testimonial for the product. This testimonial can then work as a catalyst  to  help expose your services or products to the market  and helps it gain credibility in no time.

• Be Aggressive!

  If you want to beat a giant, you should be aggresive. You have to be prepared to do an aggressive marketing campaign which although will cost quite a bit  of money, will help your potential clients know  that you really think your products  or services are worth spending the money to promote.
  Yes, beating the giant is something possible. However, there is  always the possibility that the gaint competitor might fight back, in which case you might get burnt.

Befriend the Giant

This approach may sound easy and too simple. However, not many people realizes the power of befriending giants. I will talk more about this in my next entry, in the mean time, just know that there are 2 ways to dominate a market. And if you haven’t read the affiliate marketing jargon that all affiliates should know about, I strongly suggest you read it.