Thinking before starting a business competition is the future

Source: Internet
Author: User
Tags relative advantage

The future is competition.

1. Endless Opportunities

The internet is still in the primary stage of development, on the one hand, with the traditional business, daily life of the combination of many areas have not been launched, the traditional business, the impact of daily life is still shallow, on the other hand, the new economic and life model has not formed. To computer, electricity, machinery for reference, the development of the Internet from the depth and breadth of two points of view, there is unlimited space.

Internet opportunities are like an expanse of Great Lakes. Born in this world, we are fortunate.

2. Limited contact Surface

In the boundless big lake, 100,000 people crowded in a 100 meters wide water bay to rob water to drink, although the lake Infinite, but in the limited contact surface, must be beaten badly, there are many people want to die of thirst.

This is the case with the Internet, where most of the resources are concentrated in a limited number of areas.

3. running at the same speed

Since the water bay is too narrow, it is inevitable that a large number of people will quickly seek his path, or climb Sao from the cliff or over the mountains to find a new water bay. The new Water bay constantly found that the problem is that people are so much, we run the same speed, to reach the same distance, so every discovery of a water bay, must be quickly packed, fighting.

New directions are constantly being found in the Internet, but each direction is bound to be quickly filled with people, followed by a stampede.

Seemingly infinite capacity, in fact, limited contact, the speed of contact expansion can not meet the needs of the competition, which is the characteristics of the Internet.

The rapid and wide information transmission, the popularization of knowledge ability, entrepreneurship and business awareness of the general, so that our generation to face the competitive pressure, far in the past hundred generations above. This is our misfortune and helplessness.

Before starting a business, you must have sufficient preparation, competition is the future, the future is competition.

two. The front is too long

Some people say that the internet is a big constant, winner-take-all pattern, I doubt. China currently has 130 million Internet users and will continue to grow in the future. There are many areas of the so-called far ahead, in this capacity before the weak water 3,000 to take a scoop drink just. There are a large number of potential customers he is temporarily unable to contact, or inability to digest, or did not find, or customer demand is not stimulated, as long as a change of perspective, can break through. Most of the leaders are facing too long a problem.

The front is too long, not already open up the long front, but the enemy can invade the angle too much. You can be dedicated to keep a corner, do strong, but others can flank substitution. Big Evergrande, Winner takes all, depends on how to understand. From the total market, the big one is only relative to other people's size, from the total share, or limited. In total, the distribution of markets and opportunities may be long tail, not 28.

A long battle line is double-edged for the entrepreneur. On the one hand, you don't have to fear the advantages of the leader, there are a large number of potential users are not contacted by the opponent, there is a large number of segments of the demand is not satisfied, as long as the intention, in any case can be cut; Everyone is a mollusk, and there is only one small, unbearable shell. Everyone has a chance, no one is strong.

Unless, is a small space market, all of a sudden give you full.

three. How far can the first advantage go

Many entrepreneurs see space and try to get in and take it as their primary reason for starting a business. It's good to get a first-served advantage, but the question is how long you can lead.

How long the first advantage can lead depends on two conditions:

1 The speed of others

2 Can you form an advantage share

in the current Internet environment, these two conditions are not optimistic:

1. Many people stare at their eyes and look for opportunities, and if you find a chance here, the follow-up will be quick. Resources can be compared with you a lot of people often too.

2. More importantly, unless it is a small space market, it is difficult to gain a share of dominance.

Why is it difficult to gain a share of dominance?

To illustrate this issue, first of all, we should clarify the concept of advantage share. We often say that the share of all the competitors formed together in the total amount of your share, this value is insufficient information. I mean the share of dominance that you have in the entire potential market, and in most cases there is so much untapped potential that even the market leader's absolute share of the total potential market may be low. This means that the front line is very long, others can be in the vacuum with you at the same speed expansion, as long as the time, each other's relative share gap will shrink.

To confirm this, just ask how many potential users have not been exposed and used to market leaders in the stock and the number of new users. Yes, you are strong, but others in the vacuum zone with your development, you can not restrain others, on the contrary, a lot of space Rob will inhibit your development. We all grow up, everyone is not small, the feudal separatist regime.

to sum up, the first advantage is limited. Unless you can confirm the following two conditions:

1. This area is relatively isolated from the IT community. People in the circle don't understand the internet, and vice versa.

2. The market is small enough for you to be able to fill it quickly or be unprofitable.

Otherwise, you can only expect to achieve a vassal state of the situation, your share, mainly not rely on the first advantage, but comprehensive strength.

I believe that in the current Internet environment (the early days of the internet is not the case), unless it is a more closed area, or the first advantage in the establishment of competition threshold of the significance is limited, it is not necessarily your core competitiveness, so it is not necessarily able to support your business reasons. By contrast, it may be more important to have a unique resource, or to have a strong ability to integrate resources.

And if you can find creative opportunities in a more closed area, congratulations. Hurry up.

Four. What is your core competency

The author has been thinking about this problem. I can find a lot of market gaps, and believe in any direction, can make a point, the question is "then?" After entering the separatist pattern, how do you break through?

Of course, can not break through, can occupy a share in many markets, alpine vegetable per, but also can split the market, create a small enough market, quickly filled, occupied by the king. The problem with Alpine vegetable per is that it is not easy to deal with the management cost and opportunity risk after the stall. This can also be regarded as a core competitiveness.

I have talked about: "What drives us and bothers us is not the things themselves, but the relative values of things and our abilities and desires." In fact, the core competitiveness is the same, you need how much competitiveness, depending on your desire to develop.

What are your core competencies in the face of current and future competition? How big a core competency do you need?



Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.