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Use of imitative innovation to succeed in over-saturated markets!

  • Posted August 1, 2018

You already have a passionate business idea, but worried that your market is highly saturated? High market saturation denotes high level of competition in the industry, which actually interprets a high degree of demand for the products or services of that particular industry!

Start-upers are always discouraged by external forces that force them to doubt on their viability of business idea. They are often questioned by banks when they reach-out for funding, and criticized for the fact that their market is already competitive and lead by established brands and it would be hard to even sustain a survival in the industry in such hyper-competitive market. This leads the start-up entrepreneurs to believe that their idea might not work in the industry due to the fact of high level competitive rivalry!

However in reality, over saturated markets are not that dangerous and it doesn’t necessarily mean that you should be having a totally novel product to succeed in the industry. Over saturation always denote that there is high demand, and this high demand always reflect on a pool of customers who are in need, in search, and willing to buy products or services, similar to what you plan to offer.

Identifying existing gaps

Whether it is competitive market or not, the same process applies when initiating a business process. Identifying gaps in a competitive market can seem impossible, but in any industry, there are means of opportunity exploitation. There is no perfectionist behaviour when it comes to business. Even the established giant brands make mistakes when it comes to meeting the needs of their customers. There will be something missing out there. It can be the cost, special features, or process based factors such as buying convenience that could be lacking in the industry. Hence, the differentiation can be initiated through such small points, which can make big impacts.

Imitative differentiation

If you are not a top notch innovator, it doesn’t mean that you can’t succeed in the business. The ultimate purpose here is to meet the needs of customers. Many firms including leading multinationals are sick of constant innovation and at times, innovation happens at a cost with no particular benefit! Kodak, a leading digital imaging firm remains to be a historic example that addiction to innovation can actually become a cost to the firm that can lead it into bankruptcy.

Imitative innovation can be simply applied by imitating your leading and successful competitors’ practices, while adding an extra feature or benefit that fulfils a gap that your competitor has failed to look-in.

Value added services

Offering value added services can be an absolute competitive advantage in an over-saturated market. In case, even if you offer the exact same service or product as to your competitor, there is still light that you can differentiate your offerings through carefully planned value added services. Such value added services can simply create a reason why your customers should stick to you instead of your competitors!

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About the author: Mathangie is an avid blogger and the founder of NORO Solutions, a Research Based Business Solutions brand. She holds MBA from Cardiff Metropolitan University and BA (Hons) degree from Staffordshire University. 

To contact/consult Mathangie, email her directly to mathangie@norosolutions.com. 

 

 

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