How startups can avoid competition??

I was reading an article by Vimarsh Bajpai,which reflects on the various parameters that may hinder the way to success for the startups. It is a general fact that startups face many challenges to establish itself amongst the big and established players in the market.The need of the day is to have a multi-prolonged strategy.The article aptly put forth the key pointers that can help any entrepreneur to the tackle the competition in the market and business.

1.KNOW YOUR COMPETITION:When you enter the market unprepared,the unawares hit you and opens the way to failure.So a competitor analysis is a must to know the current market condition and the existing products and services that are doing well.

2.GETTING YOUR FIRST CUSTOMER:A rapport with the previous employer or people known in good terms can easily get you your first customer.But definitely one has to work hard to make significant sales.

3.OFFERING NICHE PRODUCTS & SERVICES:This is where the starups can drive the wind their way.If you desire to get noticed, you have to bet and carve a niche for youself which can raise a new platform in the market against the existing businesses and its offerings.

4.COMPETITIVE PRICING:It becomes essential for a startup to price competitively.Offering a variety of pricing and deployment model can actually make pricing a non-issue.

5.SERVICE QUALITY:Setting new benchmarks for quality could be a great differentiating factor.

6.ADVERTISING & PR:For startups "word of mouth" is the best startegy.Outsourcing work to smaller PR agencies and networking are the major means that can lead the startups to reach the new customers swiftly.

7.EMPLOYEE MOTIVATION:As the startups cannot offer huge pay packets , an inspiring work environment can make them get most out of their employees.This would also provide them a place for experimenting and coming forward with different new ideas.

8.CONSTANT INNOVATION:It is the only way to retain customers and add more to the kitty.

9.GRAB A PIE IN BIG PROJECTS:Large corporations get their work done from outside agencies and it makes sense to grab ssuc business.

These key pointers should be kept in the mind before entering into any new business as it will definitely help in avoiding a large percentage of risk that any entrepreneur may face while formulating the business plan-from idea to reality.

Posted by:Jaspreet

Market Failure and the Big Three

It was much debated on whether the Federal Reserve should bailout the U.S auto industry or not. Many were of the opinion (with a conservative view) that the Big Three could probably survive and be competitive if the U.S government would let them go into Chapter 11 bankruptcy instead of bailing them out with taxpayers’ money.

In a capitalist economy, government intervention is less likely and less welcome unless there is a market failure which has far reaching effects. The fall of the Big Three would have been an imminent danger to the U.S.A's national economy. President Bush's order for an emergency bailout of the U.S auto industry offering $17.4 billion have risen mixed feelings. The autoworkers union complained the deal was too harsh on its members, while Bush's fellow Republicans in Congress said it was simply bad business to bail out yet another big industry.

To my opinion the Fed's decision is perfect as it could not afford to allow the massive auto industry to collapse when the economy is already in the middle of an economic downturn. The Big Three's fall could send the U.S economy into a deeper and longer recession. But, it is also high time for the U.S auto companies to reform bad management practices and begin the long-term restructuring to safeguard the millions of jobs it provides.

Posted By: Anirban Dutta