A number of startups are being launched in a wide variety of sectors, operating it profitably for a long period of time could be challenging. As per statistics, the majority of the startups fail because of several reasons. There are 3 ways to stand out from the competition without need of many efforts in building the product, service or technology platform. In case of mobile applications, offering an app with advanced features, better presentation and usability often times does not help.
There are 3 ways to differentiate the startup app idea from competition are focus, positioning, and personalization. Focus is of the startup should be predicated and should server the underrepresented as well as underserved market. Position and become known by what the startup does in its category in the best possible manner. Providing personalized services, if possible direct interaction with the client would be cherry on the top. The market positioning of the company is very critical. If a company doesn’t have a competitive advantage, there is no point in competing. Competitive advantage can be achieved through personalization. The position of any startup depends on the target they set accordingly image of the startup is built.
It is suggested that if one offers personalized service at an economical cost, their competitive advantage over price could benefit them tremendously. Zappos was acquired by Amazon for over a billion dollars. There are 3 email marketing companies that offer similar services but had a major difference in the pricing offered. All of them had crossed one billion dollars in valuation. Their area of focus was different. One of them offered service in a detailed manner and the other one offered key takeaways from their analysis along with the report. Offering your product or service to the end-users for specific categories who may be underserved is the key. Building the way to the whole category later on, once the reputation is established in the niche market.
