In the world of business, a common question often arises: Can a market ever be too saturated? This question, posed by a newcomer to the internet business world, sparked an interesting discussion. The answer, as it turns out, is not as straightforward as one might think.
The dot-com bubble of the late 90s and early 2000s gave rise to the concept of "first mover advantage". This theory suggested that companies like Yahoo, which established themselves early in the digital marketplace and built strong brand awareness, were invincible. They were the "800-pound gorillas" of the internet world.
However, Google, which launched well after Yahoo in an already crowded market, managed to outperform its predecessor. According to industry experts, Google now handles approximately a third of all online searches. Not only did Google outcompete Yahoo, but they also allowed Yahoo to use their search results.
So, how did Google achieve this? They took an existing model and improved upon it. This suggests that there is always room for a new player in a market, regardless of how crowded it may seem. However, there is a caveat: whatever your competitors are doing, you need to do it better. Whether it's faster service, lower prices, more honest dealings, a wider range, or more relevant search results, you need to outperform your competition.
If you do this exceptionally well, your competition may even end up like failed search engines Excite or Infoseek - extinct.
Being a small player can actually be a distinct advantage. It allows you to operate "under the radar" of larger competitors, using superior marketing and customer service. There's always an angle someone hasn't thought about. For example, using search engine optimization for less popular keywords has allowed many businesses to grow from strength to strength.
Consider the fiercely competitive internet marketing sector. Many successful entrepreneurs in this field will tell you that if they were starting again now, they'd avoid the market like the plague due to the intense competition.
However, in December 2002, a brand new internet marketing book was launched - "Under Oath - The Whole Truth". Despite the saturated market, the book was full of fresh information and stood out from the crowd. According to press releases and newsletters, the previously unknown author, Stephen Pierce, sold 1,500 copies within the first two weeks of launching it. His website, the-whole-truth.com, went from obscurity to being one of the top 2000 sites on the internet, as ranked by Alexa.
So, can a market ever be too saturated? The evidence suggests that there is always room for innovation and improvement, regardless of how crowded the market may seem.
Richard Adams, a former zoologist, spends most of his time rating and reviewing online payment processors for his website at MerchantAccountForum.com. He also runs a monthly newsletter called "The Ecommerce Journals".
