"The market is flooded, a gorilla already exits, what should we do instead?" is a question I often am asked.
Let's pick that conumdrum apart to generate a simple answer and get you out of The Wilderness of Undistinguished Startups.
Start with a quick read of today's blog from TechCrunch about Vidyard.
Note the following:
- Market for videos dominated by YouTube
- Alternatives to YouTube are expensive
- New uncontested (no Gorilla yet) market is open: "an affordable way for businesses to host videos that can be viewed either on a landing page or via an embeddable player."
- New market has huge potential (number of businesses)
- Business model (monetization) is simple and proven: "To monetize, Vidyard is using a freemium model"
- Vidyard focuses on a single weakness in the Gorilla: "Basically, Vidyard is offering a service that’s very similar to YouTube, but without that link to a third-party portal." Yes, there are other features, but this is the weakness that is difficult for the Gorilla to quickly overcome, thus giving the startup an opening.
- Technology team can deliver what marketing team wants (Vidyard hopes).
I don't know enough yet about the experience of the Core Team, but the above is enough to make my point for the day: When the market is flooded, when a Gorilla dominates, then find an overlooked (often related market) and put everything you have into pursuing it. That's what world-class marketing minds call The Flanking Strategy. It avoids the Gorilla, appeals to a large market, and gives the startup a great chance of becomming its Gorilla.
BOTTOM LINE: Look for large overlooked markets when you face a Gorilla dominating a major market. Focus all you have on something the Gorilla cannot respond to quickly, something customers are begging for, and then go for it. Serial entrepreneurs do it. So can you. It's how most great startups become great, building their unfair advantages.
I wish you The Best on your Adventure!