A few days ago I watched a documentary about new http://onlineclub.accountant http://onlineclub.accountant StartUp businesses, how they are growing up and, in many cases, succeeding in reaching their audiences and creating profitable business models. But, why are StartUps Businesses succeeding?
I worked for a London StartUp called We Connect Students for 7 months, and this gave me the opportunity to understand how StartUp businesses work from the inside and why they are perfect for 21st century consumers.
Large companies with big budgets can afford to create beautiful and creative marketing campaigns, but they usually fail to understand and adapt accordingly to what their customers are looking for. This happens because their http://sildenafil50mg50mgcitrate.accountant sildenafil 50 mg larger sizes make them http://tadalafil.accountant click here slow when it comes to adapting to new trends and needs. This is where StartUp businesses find their competitive advantage because they are able to cheap adapt faster. Thus, they can fill the gaps that the big companies are not able to reach in specific niche markets.
To understand the birth of large companies we need to go back to the Industrial Revolution, when economies of scale gave companies the http://onlinecanadamix.accountant online canadian pharmacies competitive advantage over the rest. The largest company could get a lower average cost of production so it could offer the same product at a cheaper price. All the products were standardised, because their aim was to satisfy standard needs, and the only variable of decision for a consumer when buying product was the price.
With http://expressnaturalviagra.accountant natural viagra mass production, the industry realised that they had to come up with a way to advertise their products so as to reach as many consumers as possible. Large numbers were the unique key in a standardised world and they found the answer in canadian pharmacy 365 Mass Media Advertising.
With Mass Media Advertising the largest companies could afford expensive campaigns which would reach thousands of potential customers. They would be very happy to purchase products that were advertised on TV, as this was proof of good quality in those times.
More customers led to more sales, more profit, and again more campaigns. This perpetual cycle was a barrier for other competitors to get into the market. Every sector was an oligopoly where very a few companies controlled a great percentage of the market. The Pareto Principle would state in this case that 80% of the Market Share was held by 20% of the companies.
Unfortunately for oligopoly Market Leaders, the Industrial Revolution business model did not last forever, and with rising living standards some companies started to realise that consumers would be happy to spend extra money for a tailored product to their needs.
This way, Product Differentiation was the marketing strategy that could compete against low prices. This strategy kept evolving until it reached a point where both mass production and Mass Media advertising have been proved not to be as cost effective as they used to be.
Consumers of the 21st century are blind to standardised products as well as Mass Media advertising such as outdoor billboards or TV Ads. The only way to jump that barrier is targeting the audience that is interested in your customised product, which is possible with Digital Marketing techniques.
StartUp businesses, unlike Industrial Revolution companies, are small, flexible, and adaptable to 21st century consumer needs. We are now used to having access to customised solutions to our problems. This creates lots of gaps and niche markets that only specialised StartUps are able to fulfil and this is the reason why StartUp businesses will continue to grow and succeed in a world where product customization is the only way to attract the attention of overwhelmed consumers.