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Is A Market Ever Oversaturated?
© 2003 by Richard Adams
radams@merchantaccountforum.com
I got asked an interesting question last week.
A guy new to the Internet emailed me wanting to know if there was
such a thing as too much competition within a market.
It took me a little while to think about such an excellent question
before I replied.
Here's what I told him...
The dot-com bubble (and subsequent burst) fuelled stories of "first
mover advantage". The myth went that companies like Yahoo that got
in early, established themselves within the marketplace and built
strong brand awareness were untouchable. The "800-pound gorillas"
in nerd-speak.
But didn't Google launch well after Yahoo, in an already crowded
market?
Infact, according to some search engine industry experts, Google
now serves up around a third of all searches online. Not only have
Google outcompeted Yahoo, they even let Yahoo use their search
results.
How did they manage this?
They took a model that was already working, then improved on it.
I don't think there can ever be too much competition in a market
for a new face. My experience is that no matter how busy the field
or how hot the competition - there's always space for someone else
in the niche.
But there's one proviso.
Whatever anyone else is doing - you need to do it better. Do it
faster, cheaper, more honestly, with a wider range. Or, of course,
more relevant search results.
If you do it really well, your competition may even end up like
failed search engines Excite or Infoseek - extinct.
Remember that being small can be distinct advantage for you. It
enables you to move "under the radar" of larger competitors, using
better marketing and customer service.
There's always an angle someone hasn't thought about. Using search
engine optimization for less popular keywords has allowed me to
take my merchant account site from strength to strength.
Consider another example - the hotly contested Internet marketing
sector.
Time after time, those who have made it big will tell you that if
they were starting again now they'd avoid the market like a plague.
Too much competition they say.
The industry is saturated they tell you. Competition is enormous,
and many of these entrepreneurs are search engine experts to boot.
So you'd have to be mad to try and enter this industry from a
standing start, right?
In December 2002 a brand new Internet marketing book was launched -
entitled "Under Oath - The Whole Truth". I personally own a copy
and can attest to what an excellent book it is.
What is so interesting is that it's full of brand new information.
It stands out from the crowd because it is so free from the
constantly rehashed themes so common in these circles.
It's so good infact that according to his press releases and
newsletter, the previously unknown author, Shephen Pierce, sold
1,500 copies within the first two weeks of launching it.
His website, http://www.the-whole-truth.com, went from nowhere to
within the most popular 2000 sites on the Internet as ranked by
Alexa.
And all because his book is new, exciting and more original than
most of his competitor's.
So I'll ask you again.
Is there ever too much competition?
Richard Adams, a former zoologist, spends most of his time rating
and reviewing online payment processors for his website at
http://www.MerchantAccountForum.com. He also runs a monthly
newsletter called "The Ecommerce Journals" - subscribe free at
mailto:subscribe@merchantaccountforum.com
Note to editors
The website mentioned in the article also has an affiliate scheme
and a high converting website. Should you wish to substitute your
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Should you decide to publish this article, I'd love to know where
it will appear. Please let me know at
mailto:radams@merchantaccountforum.com.
About the Author
Richard Adams, a former zoologist, spends most of his time rating
and reviewing online payment processors for his website at
http://www.MerchantAccountForum.com. He also runs a monthly
newsletter called "The Ecommerce Journals" - subscribe free at
mailto:subscribe@merchantaccountforum.com