Imagine a life without real-time money transfers, digital television, smartphones, laptops and navigation systems? The majority of our society cannot live without all these digital innovations.
Mobile technologies are often low-cost and make digital technology an omnipresent part of modern life. Digitalization not only changes everyday lives and the way companies work, it also changes whole industries and markets.
Successful startups which have developed a new service or a new product thus dominate the newly emerging market for quite some time. However, the initially exclusive market niche slowly fills up with more and more providers. The young company is confronted with a competitive situation for the first time.
How can successful startups defend their innovative edge and market share? What are possibilities to react to the changing market?
Stand out from the crowd through optimization and individualization
It is not always the original concept that leads the company to its goal. It is all about individualization and optimization!
Millions of people love one of the most successful market leaders in the smartphone sector: Apple. Nobody can imagine that the worldwide known company was a small computer company in the beginning. The original products – computer accessories – were good, but not optimal. Only through their own production, the small computer company became a global enterprise.
Which startup does not want to become Amazon, Airbnb or Uber of its market niche? The initial competitive advantage is to offer a new digitalized service, as potential customers have been longing for.
Dynamic startups which want to dominate the market, optimize and individualize their products steadily. From the beginning onwards, they collect feedback from customers and implement their suggestions. The trick is to continue developing and thereby become unique instead of drowning in the market niche that has already been “tilled”.
Together we are stronger: in order to exploit synergy effects and defend the market-leading position, partnerships with other companies are often helpful. At the same time, the aim is to increase one’s own productivity, for example through more automation or more efficient software development.
Market changes? No problem for startups!
Why are StartUps super successful within the shortest time? Agility is the keyword! They are innovative, agile and fast. Furthermore, startups often use methods like “scrum or lean”. This provides them with a strategic advantage over established industry leaders when market conditions change. Looking at logistics, this can be new government regulations, regulatory measures, rising toll and fuel costs, new customs regulations or the reintroduction of border controls.
Adapting to market needs and market changes is easier for a small company. There are less fixed structures and plans – “learning-by-doing” is their secret recipe. Objections are not seen as criticisms, but improvements, which make startups successful so quickly. Often, startups do not only revolutionize a market but even create a new one. New strategies can be coordinated between management, development and marketing “on the short official track”. After all, a sleek speedboat can avoid obstacles on the horizon better than a cumbersome tanker.
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