How To Find Your Edge In A Saturated Market

Posted by Fitz Villafuerte under Business, Sales and Marketing on May 21, 2008

A product or service that becomes profitable in the market will almost always invite new players. As a business trend becomes increasingly popular, more and more enterprises tend to join the industry, and soon enough, the market becomes saturated.

If you’re an aspiring entrepreneur, the high demand and profitability of such businesses are very attractive. But how do you identify if the market you’re planning to enter is already saturated? And if so, what strategy can you use to be able to penetrate and survive this competitive atmosphere?

Moreover, if you’re already in this successful enterprise, how do you maintain status and hold your ground amidst increasing competition? What are the necessary steps to undertake that will help sustain profitability of your business? How do you find your edge in a market that’s tipping or has already reached saturation?

The first question we need to answer now is, how do you determine if the market is already saturated? Aside from conducting a comprehensive market research, these are the signs that you need to look out for:

  • More and more businesses are offering the product or service
  • It’s increasingly becoming a household name
  • The price of the product or service is decreasing
  • Innovations, cheaper alternatives and imitations of the product are coming out
  • Marketing and advertising has increased for the product or service

saturated-market

Whether you’re just starting out or already in the business, penetrating a saturated market and surviving amidst stiff competition takes careful planning and execution. The following tips will offer you ideas on how to go about this:

  • Keep existing customers by rewarding loyalty
  • Explore new markets for the product or service
  • Sustain profits with new offerings related to your business
  • Reinvent or reposition the brand
  • Tap alternative distribution channels (wholesale, retail sales, affiliate programs, etc.)
  • Invest on research and develop innovations
  • Explore measures on how you can decrease prices with minimal effect on profit

Personal Case Study 1: Making Money Online Blogs

There are hundreds thousands of blogs right now that teaches how to make money online. I did some market research on this and wrote a plan on how to penetrate this saturated market. So if I want to start a blog that teaches how to make money online, my strategy would be to choose and concentrate on a specific blogging income stream that’s not being comprehensively covered by exisiting blogs.

One good example would be writing sponsored reviews and paid posts. From one blog to another, all I read about this income stream are affiliate posts and invitations to join various get-paid-to-blog programs. I don’t think there exists a blog that genuinely talks about strategies and techniques on how you can maximize your earnings through this income stream.

If I were to start this (which I won’t so feel free to start one right now 🙂 ), this blog would give a complete list and an objective review of paid blogging sites. It would give credit to those who pay and expose scam sites. It would also provide tips on how to write better reviews and share tools that will increase one’s productivity. Websites like Javascript Kit which you can use to check if you already reached the required minimum word count or softwares like AutoRefresher which you can use to easily seize Pay Per Post opportunities.

market-saturation

Personal Case Study 2: Internet Cafe Business

The internet cafe business in the Philippines, specially in Metro Manila, is already saturated in my opinion. Nevertheless, more and more people are still putting up this business hoping to capture the likewise increasing population of internet users and online gamers. If you are an existing internet cafe owner, how would you sustain profitability?

First, you can increase consumer patronage by offering membership benefits to your internet cafe. Loyalty reward programs, perks and promos are viable means to keep your existing customers. Furthermore, you can upgrade your computer specifications to stay competitive with new shops who are most likely equipped with the latest processors.

Invest on LCD monitors which are more energy efficient than CRT models. You’ll be able to cut on electrical costs and possibly maintain your current profit margins if ever you plan to lower your PC rental rates. Explore other income avenues such as photocopying and selling electronic prepaid load. Lastly, develop your manpower. Most consumers are willing to pay a little more in exchange for better customer service.

I hope that you found these tips useful for your business, if you want more guides on how to put up a successful offline or online business, then please subscribe to Ready To Be Rich.

——
Photos courtesy of Coby Bidwell

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20 Responses to “How To Find Your Edge In A Saturated Market”


  1. juler says:

    You are right, i also have a make money online blogs aside from my main blog. This is nice post really. God bless buddy.

  2. Fitz says:

    Thanks juler and God bless you too. 😀

  3. Dexter says:

    Make money online blog… Hmm I have not yet one.. sometimes I tackle about make money online at my main blog that is only if some one ask for it..

    Good article here..

  4. Fitz says:

    Thanks Dexter. Yes, “make money online” is such a competitive search key phrase because a lot of bloggers talk about this. If you plan to make one yourself, I guess the best approach nowadays is to focus on a specific stream. That’s what I think.

  5. The Marketer Review says:

    4# The Marketer Review Sunday Carnival: May 25th 2…

    A quality carnival, this week, with lots of tips, tricks and advise and even the latest review on Problogger’s latest release….

  6. […] to perfection. In business, market research plays this important role. Doing so will help you find your edge that will make a new product […]

  7. […] planning to put up your own, it may help to consider various business models that can give you an edge in the market. Traditionally, the revenue model of this business has been the shop keeper […]

  8. Cecile says:

    Hi Fitz, nice I like the tips you shared on how to survive a business on the competitive world they are all true to must be entreprenuers. Hope you can share to us where to go if less fortunate people here in Cebu wants to start a small business to help them finance their initial capital coz I am a Livelivelihood Skills Trainer here in Cebu City and my students needs financial support. Thank you Cecile

  9. Fitz says:

    Hi Cecile,

    Don’t worry, I’ll surely write about ways on how to raise capital for your business here in the Philippines in a few weeks. Just doing a bit more research on that subject. Thanks and I hope you can invite your students to visit my site too.

  10. […] and market analysis, provide the strategies that will be used to influence sales. This means defining your edge and showing how you plan to compete against existing […]

  11. […] if you believe that the business is indeed profitable and you want to penetrate the existing market, then the best place to put your business is as close to your competition as possible. Why? Because […]

  12. […] voice, people will be interested to listen. This is also true in business, if you can successfully find and define your edge over your competition, then your target market will surely take […]

  13. […] competition is high and the market is saturated, building on the core competency of the business is usually the best strategy to outprofit your […]

  14. EdZee says:

    Hi Fitz,

    I found your site while testing G-Lock Blog Finder. I commented on this old post because Internet café business is the subject of my niche blog. Should I say that the business is going for worse more than 1 year after you wrote this blog? Yes, that’s the truth and not in Metro-Manila alone but throughout the country.

  15. Fitz says:

    Hi EdZee, I actually run an internet cafe and I know what you mean. Unless the owner can come up with ways to evolve, then surely the business would not survive for long.

    In my case, the internet cafe is now more of a business center than a computer shop. I’ve expanded my services to desktop publishing and I also now sell office and school supplies.

    This is one strategy that internet cafe owners can do to survive.

  16. Lupu Vasi says:

    Wow! You make me laugh this morning. I had the exact some thoughts before I came over your blog. I hate the “Internet Cafe Business” too.

    Today I asked myself this question: “Is the Internet Marketing market saturated?” I come over your blog from a Google search.

    Yes, I’m trying this niche for a long time now (over 6 months) and I made 0 (zero) sales. A lot of clicks and statistics. I tried everything is the world: twitter, classified ads, adwords, CJ, Clickbank, ROIRocket and more. I thought maybe there are too many trying to do the same thing. And they are many. Maybe there is still room for new things or a new approach but the old methods don’t work anymore. For example, I tried to find on Twitter the normal people, the people that buy. I couldn’t find them. I found only Internet Marketers all over the place. All of them trying to sell you something.
    And, by the way, I’m like you. I don’t give up. Even with zero sales.

  17. […] innovation is about creating and doing something better from what it already good. It is about finding your edge that will differentiate your product and your business from […]

  18. […] idea was to come up with a restaurant that will have an edge in today’s market. In a city full of burger joints, pizza-pasta places, fusion cuisine and others, the novelty of a […]

  19. Michael says:

    I started an internet cafe in metro Manila in Jan. It started slow like all business but now after 5 months it has really taken off. Internet cafes continue to do well in the Philippines if run correctly.

  20. […] businesses? Is it better service? Longer warranty? Cheaper prices? More flexible payment terms? Know what you can offer and use it to your […]

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