Recently almost every entrepreneur to achieve illusionary success in business is getting a reality check. The reality check is all about the lack of understanding of the market, and the lack of analysing the demand for that particular offering. The other major factor is not deciding the minimum viable segment. And thus, the hype of becoming an entrepreneur and following their passion is been misunderstood by the founders which is creating a problem for them.

Every entrepreneur these days is trying to come up with a new idea that they believe is unique and will solve the pain points of their targeted audience. But unfortunately, there will be on average 20 other players who will be doing the exact same thing. Every entrepreneur thinks the USP is the only way of achieving a competitive advantage. But experts have assured the USP is the only way of getting customers’ attention. The real concern here is whether the product XYZ company is offering is valuable, and does the targeted audience value the product and is ready to pay for that. The business model which the founders are creating is not customer-centric. If we look at the Indian market, there the market is filled with fragmented needs. The economic diversity in terms of disposable incomes of the population domestically and internationally is never been taken under consideration by the founders. 

“According to Forbes, the percentage of Indian startups failing is 90%. Yes! The numbers are shocking, and why it shouldn’t be.“

According to the survey done by the BCG, Indian Entrepreneurs are very much obsessed by following the leader strategy. Everyone is following the business which is making money and ultimately struggling with the lack of brand positioning and trust factor. Also, the lack of R&D is contributing to the failure of the entrepreneurs.

Analysis:

The goal of the entrepreneur should not be to chase the end goal of the business model which will be obviously the monetary benefits but, to focus on the value propositions. The rising competition in every industry is creating volatility in the prices of the end products. The founder needs to find the segment which is underserved and which is very hard to attain by other players. This is a great place for the entrepreneur to be at. When the analysis was done the major reason for the success of the startup was the above-mentioned reason. The other problem is the founders are very much concentrated on building strategy, the term strategy is been misunderstood by them. When the official survey was done the founders think building strategy is all about performing the activities differently. In textbook language, the founders are doing the operational activities differently. And this is what is making the business model more about the founders and less about the customers. 

Another study shows that successful businesses are the ones which created a disruptive business model, The disruptive business model is entering into the competition and changing the traditional way. The disruptive business model can be related to the pricing, distribution channels and so forth. This is the fact this article is all about understanding the market and the competitiveness. To have the comparative advantage the customers will need to answer the questions differently.

Answering the question will be to implement strategies which will position the company’s product differently. And this is where the chances for entrepreneurs to succeed will start to get broader. Doing business is also about implementing the latest technologies by analysing the current trends. The companies which fail to analyse the trend are likely to hit maturity level. So, also with the product development the companies will need to analyse the trend so that the adversity isn’t faced by them in the long run. 

Key Takeaway!

• The grey space in a matrix is the corner which is not focused on, if the entrepreneurs find that space the success rate will definitely go high.
• The analysis of the entry and exit barriers needs to be done by the entrepreneurs. 
• An analysis of the current trends needs to be done in order to keep up with the demand side. 
• The business model should always be a customer-centric business model.
• The answers should be answered differently instead of following the market leaders. The experts expressed that if the imitating of the market leader is been done then in most cases the business becomes a zero-sum business.

Also, the entrepreneurs will need to manage the value chain which will include the high-efficiency operational activities.