In startups, there is often a need to apply what is known as an indirect approach to gain competitive advantage. The indirect approach is used to overcome a fair number of obstacles you could come across in your business; some of them including the size or experience of your organization, or the presence of a better branded competitor in the market.
These things are just facts of business, and we as entrepreneurs need to face them. But sometimes, the best way to hit them head on is to tiptoe around the edges.
Using an indirect approach to getting new business or establishing a foothold in a market is a necessity. It involves using smaller, lesser known strategies to gain ground, while staying out of the focus of your bigger competitors. Take ebook publisher’s for example. A growing trend is to release the ebook in text form for free, while letting the user pay for the audio version. Or musiciains who will distribute free music and charge for attendence at their shows.
In fact, taking the indirect approach, establishing an indirect advantage, is what niche marketing is all about. You are picking a niche market for a reason – it is too small for a larger company to be concerned with. By establishing a big foothold with a tiny group of people, that niche all of a sudden gets pretty lucrative.
Here are some situations to look for when business idea brainstorming or looking for an indirect advantage:
- You can apply a strategy, but a competitor cannot.
- A competitor cannot easily duplicate your actions.
- You can fly under the competition’s radar, until it is to late (for them).
- Whatever happens, you will have the advantage.
These situations might include products, pricing, market segments, geographical locations, distribution methods and systems, sales methods, advertising, promotion, and any niche market you can think of.
So the next time you are looking to gain ground in a market, don’t think about what your competitor is doing. Instead, think of something you could do that your competitor can’t.
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