I'm on my way to New York City this week. Love that place...not. Actually, NYC is a great place to visit...well...you know the rest.
Anyway, as I was going through the security gate today in Denver, I approached the area where you remove your shoes and place your belongings on the x-ray belt thingy. I grabbed one of those bins to place my laptop and shoes in and there on the bottom was an ADVERTISEMENT. Wow, where else will they think to put an ad? At any rate, the ad was for a company called Zappos.com.
I know this company pretty well and have studied their business model a good bit. This is a company that entered into the over-crowded footwear market and has gone from $0 in sales to $1 billion in just ten years. It's not because they invented some fancy new shoe but rather they simply provide a way to buy shoes that is hassle-free, convenient, and low-cost. Their slogan is "powered by service." If you ever have to call them for any reason then you will experience the difference first-hand. Their customer service team is trained to make your life easier and they have the uncanny ability to befriend you in 2 minutes flat.
My Point: For those entrepreneurs out there that are concerned about too many competitors...don't be! Try positioning your business around delivering a superior type of value. If customers want it fast then be the fastest. If they want customization then spend time fully understanding their needs. If they want innovation then give them the latest and greatest.
A Common Trap: Don't try to be all things to all people. Find out how you can differentiate your product or service and focus your efforts on that. Zappos.com doesn't spend time or money on innovation or bells and whistles. They create an easy to navigate webstore that makes the shoe buying experience hassle free and fast.
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