Many businessmen would like to take dominance of the market, gather all customers and be ahead from their competitors. An entrepreneur has a dream to change the world. However, startup businesses, fortunately, don’t have to change the world or make a new market.
You still can give a good contribution to make people’s life better even when you just created your company.
As a newborn business, you don’t need to create something that is really new and original. In most cases, all you can do is invading the incumbent’s regions and soon, they will fight you back.
Here is a big problem for you since they have advantages on all sides.
The incumbents have the reputation, infrastructure, name recognition, products, services, staffs, capital, supply chains, contracts, logistics and more.
You, on the other side, have to develop those functioning business. It is, in fact, slower, harder, and more expensive than people think. The incumbents can do anything that a startup can do. But, you need to take note that it doesn’t mean they are going to do it. You should be able to figure out whether the incumbents you invade is now roaring or sleeping.
Watch how the incumbents talk about their market development
There are always changes that occur in the market. Look carefully at how the incumbents giving their response.
If they claim that they have done reorganising for a better serve and saying something vague like they believe their stock will be poised to recover, you can make sure that they are sleeping.
However, if the incumbents start to take some actions like hiring creative technologists, not talking much about the R&D, or taking collaboration with unconventional allies, then you should be aware. They are preparing to fight back.
Watch how the incumbents talk about their own
Keep track of the incumbent’s actions. If you see they are talking about investments and planning to focus its use on markets, then you should certain that they are roaring.
On the other chance, they might only talk about budget or blabbering about their happy results last period. These topics typically inform you that they are sleeping and you can be relaxed as you planning for your next strategies.
Watch how the outcomes make them think
The incumbents often still are the king when a new company enters their market. Their stock price will be rising for years and their revenue is still growing. However, if these good results make them have faith that they are safe and do nothing, they are actually being careless.
In the worst case, they will be crushed eventually.
In many cases, when a company thinks that their strategy is good enough and working properly, they will not change anything nor anticipating new threat. They are just daydreaming, not knowing that it will lead to their own downfall.
Watch if the incumbents think that they own the market
The incumbents may quickly be satisfied when they have large customers and think they will be faithful. In fact, there are no “our” customers. No company will own customers except if they have done unbreakable contract or changing to other will be much more expensive.
Customers will always welcome a new product that will treat their dissatisfaction. If the incumbents think they own the customers, then it means they are sleeping and you can successfully invade them.