Strategies to Crack Well Guarded Markets

Strategies to Crack Well-Guarded Markets

The article presents very interesting strategies to break into well-guarded markets without being noticed by stiffer competition established by industry leaders. The 3 listed strategies along with their combinations offer a way into well-guarded markets. It would be interesting to note how these strategies that offer economic insight as well when it comes explaining increasing rates of output per capita. For example, in highly competitive markets dominated by corporate giants, rethinking and re-strategizing business is the only way new entrants will survive.

The Solow model of economic growth also supports the fact total factor of productivity is the most important determinant of economic growth rate. This article in my opinion is an extension of that idea, wherein a just like in a Solow model, where innovation and re-thinking paradigms lead to higher growth. Similarly, the article describes re-thinking the approach for breaking entry barriers in competitive markets.

Like the many examples given in the article, uber and Ola in India are a good example of how these new entrants have taken over their competition (Meru, Dot Cabs etc.) the competitive advantage here was how they reconfigured their supply chain, with almost no inventory of cars, Ola relied on individuals registering with them to grow its network through very limited capital. The same is the case with Airbnb, with no physical assets or buildings, it is one of the largest aggregators for accommodation.

I’d like also to present the example of a home bakery, where a combination of reconfiguring supply chain and creating a niche has proven to be a very effective strategy to break into the baked goods industry and be profitable. Instead of an outlet-based model, we explored and implemented the concept of cloud kitchens and order and delivery were done through apps and websites.

The Bakery faced stiff competition from already established bakeries in the city, but they did not combat them head on, instead we focused on school fairs, flea markets, party catering etc. The niche segment we catered too was the price sensitive segment who wanted to try high quality western desserts at affordable prices. This price positioning strategy couples with the re-configuration of the supply chain as mentioned in the article has helped the establishment break into the very competitive food business market.