How to Deal With Both Economic Downturn and Intense Market Competition?
Many businesses have been affected by the fluctuating economic conditions. In some cases, our company can be affected negatively by the economic downturn. In general, ripple effects may result in shrinking home equity, slow sales, job downsizing and foreclosures. This will cause consumers to spend less and less money on products. Government may also experience reduction in tax revenues and could affect some public services. Some people could be quite panic, because they don’t are not sure whether, they can make a living. It is not easy to get an angel investor to provide additional fund for our business.
There could be funding problems that we need to consider especially because consumers have become very choosy. The problem can become more complicated when a company is planning to launch their product in this kind of economy. There are different strategies that they need to implement and it is important to know that a specific market penetration strategy may be required. A type of guerrilla marketing could be necessary when we also need to deal with giants in the industry who are also languishing under the poor marker condition. However, we could use our free flowing ideas to cater to niche consumers with unfulfilled demands.
During a difficult economy, we should examine market leaders to find chinks in their armor. In this case, our products should be designed to fully capitalize the disadvantage. We should define things that market leaders don’t provide in the market. In fact, market leaders could also have products that lack certain features. In this case, we should be able to deliver these sought after features for the consumers. Small businesses should be able to develop, modify and test their products more quickly based on market demands. This will ensure a much higher market acceptance.
There are different ways we can beat market leaders. As an example, we could be in a food canning product. There may not be a meat replacement option for vegans in the food canning industry. In this case, it should be quite affordable for small businesses to start developing a proper meat-analogue meal that can be canned appropriately. It will take months or even years for market leaders to actually deliver these kinds of products. In this case, we have filled a niche in the market, although the economic condition is unfavourable. New products that we release will be well accepted by specific customers.
If we plan to open a physical store or restaurant, we should make sure that it is opened in the middle of the ideal demographics. In this case, we will be able to improve sales, although our stores and restaurants are opened in the middle of a difficult economy. Once sales commence, it is quite easy for us to further expand our business operations. Even if difficult economy and intense competition seem to combine forces against us, we should still find opportunities to allow our business to thrive.