How can you keep new competitors out of your market?

Understanding the dynamics of the industry is critical. Anticipating new entrants and constantly adapting to the ever-evolving market demands have been key. At Beeah, our focus has always been on innovation and ensuring we're at the forefront of environmental management and waste recycling. Furthermore, there's value in adopting a measured approach. Diving into multiple markets or diversifying products prematurely can dilute focus and strain resources. We believe in mastering our core competencies and establishing a strong foothold within a specific geographic area or product line before contemplating expansion. This not only ensures operational excellence and brand strength but also paves the way for sustainable growth.

Before we can jump into Porter's 5 Forces, let's start with the basics. Know your competitors! It might seem obvious, however many companies do not precisely know who exactly they are competing against. It largely has to do with the market segmentation. It's easy to assume that you compete with many players in the market. When you precisely define the market niche that you serve, the market narrows down to fewer competitors. So, start by explicitly defining your niche and exact competitors.

In identifying my target audience, I realized quickly that I had to understand my competitors, because in offering live-demos, the question always came up. The bigger the differentiation I could speak about, the easier it became to attract the right audience. This often takes repelling the wrong client. You may be surprised to find that your so called “competitors” can also be collaborators when you find a way to serve a very specific niche. My advice is to know your competitors strength’s and weaknesses so you can then speak to how you address them better (or don’t & why). This transparency is a great trust building skill. I try to answer the question before anyone needs to ask. It’s about getting in your ideal customer’s head.

When in an industry you cannot just focus on your own product/service or just one step upstream or downstream. You've got to own the whole ecosystem by the way of healthy and mutually beneficial relationships- with suppliers, customers, consultants, regulators, policy makers as well as other stakeholders. Continuosly interacting with this ecosystem keeps you current and informed to decide on what's next for you to sustain or thrive in your market segment. This interaction is the precursor to porter's five forces model in my opinion building on which you start connecting the dots.

To deter new competitors from entering your market, you can consider these strategies: Build Strong Brand and Loyalty: Establish a robust brand and cultivate customer loyalty to discourage switching. Innovate and Improve: Stay ahead through constant innovation, making it hard for competitors to catch up. Use Economies of Scale: Achieve cost advantages through scale, deterring price-based competition. Leverage Network Effects: Exploit network effects to retain users and create barriers for new entrants. Regulatory and Intellectual Property: Utilize regulations and intellectual property protection to create entry barriers. Remember, ethical practices and adaptation to market changes are essential for long-term success.

I agree that creating a cost barrier can make it prohibitive for some competitors, but it will also make it prohibitive for many customers. I’ve always sought to build a model that offers flexible and affordable pricing in order to serve the underdog. In worrying less about competitors & more on offering a solid product with exceptional customer service, the success follows.

Creation of such barriers is not always easy esp in segments with low investment and low tech requirements. However as a business you can create your own segment by the virtue of consistent innovation and R&D, constantly differentiating your offering by the way of adding more features and price optimization. Having great control over the whole ecosystem again, is the nicest thing to have.

In my view, the main types of market entry barriers are: (1)Brand loyalty & ardent fans community. (2)Legal barriers like patents & licenses. (3)Establishing new technical or quality standards for the industry. (4)Ecosystem barriers like high startup costs or government taxation or regulatory compliances. (5)Strategy of predatory pricing or having first mover competitive advantage.

I agree that creating entry barriers is an important strategy for businesses to adopt. However, it's important to do so carefully and thoughtfully, as there are potential drawbacks to consider. For example, if entry barriers are too high, they can discourage innovation and competition, which can ultimately hurt the business. It's important to be aware of risks before implementing any strategies. However, I believe that the benefits of creating entry barriers outweigh the risks, especially in highly competitive industries.

In my experience, added to all of the factors already mentioned there is one that will be key in dissuading competitors from entering the markets and contesting market and value share, and that is to build and continue investing behind a powerful brand. There will always be flaws in the regulatory landscape, and there will always be corporate powerhouses willing to invest heavily behind disrupting the market with innovation or even lower prices, however if you have powerful Brands it will be much harder for others to weasel share from you. So avoid only focusing on pricing, margins and commercial and trade terms, as it can be short lived and market conditions evolve impressively fast.

Remember that when building a company, regardless of the industry, complacency is an enemy. It takes resilience, grit and constant growth set to ensure you are innovating. This constant effort combined with monitoring an ever evolving work landscape is key for keeping competitors at bay.

The aim of environmental scanning is to understand how environment in which a business/ organization operates is changing, spot emerging trends & study new patterns. And it is better to do analysis of both external & internal environment. PESTLE (Political, economic, sociocultural, technological, legal, environmental) is a great framework for analysing external environment. For internal environment analysis, we could use organizational diagnosys tools & SWOT framework (strength, opportunities, weakness & threats).

Monitoring your environment is an often underestimated aspect in business. Many small business owner I speak to rely on being informed when something major happens. This could in worst case take them out of business before they see it coming. But consider this aspect: Knowing about upcoming changes can put you in the driver seat of thinking ahead and foreseeing developments. How to get started? One easy way is to setup Google Alerts with relevant key words for your industry. The news get delivered straight into your inbox. Sign up for newsletters in relevant federations, industry leaders and competitors. And of course, make use of your network, discuss development regularly with other business owners, clients and suppliers.

I always try to project myself 5-10 years into the future and imagine what this world looks like and what it means for my business. Then I ask what could go wrong and list all the possible things that could have a negative impact and prepare a solution / answer well in advance of something potentially happening.

There are some useful tools to monitor your environment, here are top 3 basics: -PESTEL analysis: Classical Harvard approach to the organization's environmental conditions (political, economical, social, technological, environmental and legal) -VUCA Environments: From the US Army to the business arena, great for changing conditions. Volatile, Uncertain, Complex and Ambiguity -Megatrends Analysis: Which are the megatrends pushing the boundaries of your industry? There are social, technological and consumption megatrends.

Relationships are the highest form of currency in the financial industry. They are built on trust and take time to establish having exceptional customer service and polished professionalism can set you apart from competitors. It’s important to have a public facing profile, and to be the face of the company for that personal recognition.

In the fierce arena of business, success is more than just a goal—it's an ongoing battle. At the heart of this battle? Your customers. Top-tier customer service isn't just about aiding—it's sculpting memorable experiences at every juncture. This commitment not only builds unwavering brand loyalty but is a springboard to the fourth vital step: fortifying relationships. Whether it's suppliers, buyers, partners, employees, or your community, these bonds are pivotal. A robust relationship network boosts reputation, trust, and loyalty, diminishing the allure of rivals. Moreover, harnessing these connections can unlock resources, insights, and collaborations, giving you a competitive edge.

If you have built your relationship with customers on good foundations , it will become a much harder decision for them to switch to a new supplier. Quality, expertise, transparency and credibility will all contribute to strengthen this relationship in the long run.

Your customer success team can gather a lot of direct feedback from current customers. Your ability to sync that data with product and marketing will make the difference between stagnating in mid-market and growing enterprise accounts. Customization of value props and solutions can make for an impenetrable barrier to entry.

The greatest competitive advantage a company can have its brand's uniqueness & leadership culture, everything else can be copied by others. Competition becomes irrelevant for a company when consumers & markets are its teachers, key customers become best friends, skilled employees & talent communities become loyal fans.

Innovation emerges as the key source of differentiation in the market, an essential tool to keep competition at bay. Personally, I often find myself immersed in the quest for new markets, with a focus on those customers who have yet to opt for my products or services. My strategy revolves around presenting them an irresistible value proposition, capable of igniting their interest and addressing an unacknowledged latent need. This approach not only propels the growth of my customer base but also affords me the advantage of steering clear from the price wars of the conventional market.

As many things in life, people often view their differences as weaknesses. However, differentiation will set you apart and make you shine when marketed correctly. Start with what makes you unique and go from there with constant growth and innovation. Start slowly and be wary of those who want to piggyback for partner with your brand who do not add value or align with your vision.

Don't be perfect!Instead be unique.The more unique, authentic & trustworthy your brand is the less likely an alternative exists in the market. And innovation clearly separates a market leader & the followers.

In a marketplace that never stands still, ceaseless innovation is your compass. It's pivotal to ensure your offerings not only meet but anticipate the ever-changing demands. Simultaneously, safeguarding your intellectual property becomes paramount—it's the essence of what sets you apart. Yet, innovation isn't just about products; it touches every facet of business. The fifth step emphasizes this: carve a unique path. Be it through unmatched product quality, distinct customer experience, compelling pricing strategies, or impactful marketing campaigns. Such differentiation amplifies customer satisfaction, loyalty, and reduces threats from alternatives.

Cultivating a Culture of Innovation is necessary. The presence of a task force with cross-functional expertise focused on innovative thinking can encourage a culture of creativity and innovation throughout the business. This cross-functional team can bring a range of perspectives to the table, enabling comprehensive analysis and innovative problem-solving.

Never be afraid to adapt in business. Trying something and not succeeding with one attempt isn’t failure, find the strengths in what went right. Adapt to the changing environments, make quick moves to find new methods, new strategies, even new talent. Remember not to put all of your eggs in one basket. One adaptation should not be a complete risk, but an attempt should be evaluated. Find out what went right, what went wrong, how do we replicate and expand on what went right, and how do we avoid what went wrong. As a company, we do a full SWOT analysis of the business structure regularly, and I encourage my staff to do their own analysis under my management so that we can compare everything. Adaptations can be anything. Embrace change.

Adapt or get left behind—it's that simple. Adaptation is a culture, not a one-time fix. ?? Marketing: A/B test relentlessly. Data doesn't lie, but it does hold secrets. ?? Sales: Keep your strategy as agile as a gymnast. The market waits for no one. ?? Finance: Ditch quarterly reports. Real-time dashboards are your new BFF. ?? Operations: Use lean methods to identify bottlenecks. Innovate on the fly. Blend hard data with gut instinct for that magic sauce. Trust the process, iterate, and watch your biz not just survive, but THRIVE. ??

I believe it’s more important to create the demand in your market and provide the best solution than it is to focus energy on other companies attempting to join the area. It’s been noted imitation is the greatest form of flattery. Pivot and use industry crowding - ie. let start-up create buzz and interest while you sweep up the new client base with a trusted product.

Never become too comfortable to get better. We live in rapidly changing times. Yearly checkins are too far away to correct the course of action. At a bare minimum review your results every 3 months, core metrics even every month. Technology develops right now at lightspeed. Every day there are new tools to support you. Keep an eye on them yourself, delegate it or outsource it. But check in at least every 3 months on what is available. Another point is to constantly improve small things. Take every day 15-30 minutes to improve 1 thing in your business. They add up! Finally, track how many new ideas have been implemented every month. When did you try something new for the last time? A new message? A new marketing method? A new product?

What I would also add, is that competition can be killed with collaboration. In case you find that in the long run, the new entrant cannot be actually a competitor, try to convert him into a supplier or a service provider to your business. Else if you both benefit by shaking hands, collaborate by all means. Competition is not always bad as it may create perspectives which probably your business could not conceive till now. And you may probably see a whole new dimension through that new perspective. Collaborate whenever you can!!

Understanding the Need of the client is the key Most of the time we are internally focused on what we can offer instead of really understanding the client needs Needs are basic, all other offerings can be good to have, nice to have but cannot replace the real need towards the solution Once the need is identified, one need to work on the Approach towards the solution Next will be to identify the Benefit the client will have from the offerings What Competition is doing should be the last thing we need to figure out in order to make a clear differentiation This is the NABC model

it is non sense to have as objective ??to keep new competitors out of the market?? 2 reasons - Today’s challenge cannot be solved alone by a company. Here thinking about sustainability. The only route is moving from competition to co-opetitors or concurrent to concu-leagues. By partnering companies will be able to share knowledge and resources to solve issues related to recycle, reuse, etc… - we are in a space of hyper personalization. It is now in the B2C and coming fast in the B2B world. So welcome new competitors to answer to special needs your company will not want to fulfill and be special for your clients.

Always welcome competition…it is bound to happen sooner or later …but as long as you innovate and stay focused business is sure to come along …competition keeps you away from complacency ….

Challenge industry Orthodoxies Identify the fundamental beliefs that are shared across your industry and examine the opportunities that arise when these beliefs are relaxed. A popular example of this approach is that of AirBnB being in the property rental business without owning property. This breaking of the fundamental rules is what drives industry revolution and sustainable competitive advantage.