Competing with MASSIVE Companies, Possible?

[Lex Love]

Ah it was all starting to feel so dreamy.

Found a distinct need in my industry and started checking off all the boxes for an app idea: Control, yep. Entry, sure. Need, undoubtedly. Time, definitely. Scale, yes.
It was an app that I probably could have launched fairly quickly after learning code (minimal experience but I seemed to have a knack for it). I have INSIDERS knowledge of the industry, a long list of contacts, and had already found forum posts from truck drivers essentially begging for my very app idea.

But then when I looked into the concept, I found that Uber Freight had launched essentially the exact idea a few months ago.

Now, I know that just because someone has already thought of something it doesn't mean that it shouldn't be pursued. And had the competition been a little less steep, I would have been undeterred. But jeez Uber? They have been laying down a foundation in the trucking industry for years, not to mention have an, ahem, decent amount of success with mobile apps.

As much as I love David over Goliath triumphs, I don't want to be naive. I have no real experience with app development. And this would be my first real entrepreneurial venture. I am starting to feel that perhaps the "Entry" bar is now unrealistically high for me.

Any thoughts?

 

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[Kingsta]

Let's put this into perspective. Uber Freight booked 12% of US owned operators since launch. They're missing out on 88% of the market. Now consider that this is just one country.

Definitely opportunity here, hit me up if you want to talk more. I'm quite interested in this space, been following Uber Freight and Flexport for a while now.

 

[AnnUK]

Do you think there's sometimes a case for saying that you don't have to be David and vanquish Goliath if the market is big enough. I have no clue about the size of the market you're looking at.

But what if in a billion dollar market you could take just 1% of the 'main guy's trade, that's still a million dollar turnover - obviously assuming there's some profit in that turnover.

Why worry about vanquishing them in that case? I'm currently thinking about the idea of something in the weight loss space which (in the UK) is dominated by Weight Watchers and Slimming World. With the given of 'if I can do it better', I don't need to put them out of business to succeed....

 

[Walter Hay]

I didn't ever vanquish the giants in my field in my first business, but I did beat them in my specialty. I was competing with the world's biggest industrial chemical companies from UK, USA, and Germany.

In the most valuable industry sector in my field I achieved a total monopoly. That only left them about 99% of the local industrial chemical business. I also exported product into their markets in the Asia Pacific region, and even gained one large customer in the USA.

In one case, one of those major international competitors from whom I was regularly buying raw materials, began referring the "too hard" cases to me.

In another the Australian GM contacted the US. HO. recommending they make an offer to buy my business. Nothing came of it because H.O. though the amount involved was too small to bother with.

I rejected a takeover offer from a UK company because I was having too much fun.

When I finally sold out after 20 years, it was to a JV between the GM of a different giant UK company, in partnership with a large investment bank.

Don't ever think competitors are too massive to lose some market share to you.

Walter

 

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[YoungPadawan]

Don't ever think competitors are too massive to lose some market share to you.

I'm putting this on a poster and putting it in my house.

Great stuff as always, Walter.

 

[AgainstAllOdds]

I didn't ever vanquish the giants in my field in my first business, but I did beat them in my specialty. I was competing with the world's biggest industrial chemical companies from UK, USA, and Germany.

In the most valuable industry sector in my field I achieved a total monopoly. That only left them about 99% of the local industrial chemical business. I also exported product into their markets in the Asia Pacific region, and even gained one large customer in the USA.

In one case, one of those major international competitors from whom I was regularly buying raw materials, began referring the "too hard" cases to me.

In another the Australian GM contacted the US. HO. recommending they make an offer to buy my business. Nothing came of it because H.O. though the amount involved was too small to bother with.

I rejected a takeover offer from a UK company because I was having too much fun.

When I finally sold out after 20 years, it was to a JV between the GM of a different giant UK company, in partnership with a large investment bank.

Don't ever think competitors are too massive to lose some market share to you.

Walter

This.

The market is huge. If you can get 1% of the market, then you can get a huge payday.

Position your business to eventually be acquired, and if you're good enough, eventually it will be.

 

[Lex Love]

Let's put this into perspective. Uber Freight booked 12% of US owned operators since launch. They're missing out on 88% of the market. Now consider that this is just one country.

Definitely opportunity here, hit me up if you want to talk more. I'm quite interested in this space, been following Uber Freight and Flexport for a while now.

Excellent point. When you say interested in this space, what space exactly are you talking about?

 

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[Lex Love]

Do you think there's sometimes a case for saying that you don't have to be David and vanquish Goliath if the market is big enough. I have no clue about the size of the market you're looking at.

But what if in a billion dollar market you could take just 1% of the 'main guy's trade, that's still a million dollar turnover - obviously assuming there's some profit in that turnover.

Why worry about vanquishing them in that case? I'm currently thinking about the idea of something in the weight loss space which (in the UK) is dominated by Weight Watchers and Slimming World. With the given of 'if I can do it better', I don't need to put them out of business to succeed....

The market is roughly 3 million truck drivers. Owner operators would likely be the most attracted to the app (350,000) though I guess that's up for questions. As well There could be a pile of dispatchers and freight brokers who could probably make use of it as well.

I appreciate this. I'm going to be looking into some ways I can offer unique value. Thank you

 

[Lex Love]

I didn't ever vanquish the giants in my field in my first business, but I did beat them in my specialty. I was competing with the world's biggest industrial chemical companies from UK, USA, and Germany.

In the most valuable industry sector in my field I achieved a total monopoly. That only left them about 99% of the local industrial chemical business. I also exported product into their markets in the Asia Pacific region, and even gained one large customer in the USA.

In one case, one of those major international competitors from whom I was regularly buying raw materials, began referring the "too hard" cases to me.

In another the Australian GM contacted the US. HO. recommending they make an offer to buy my business. Nothing came of it because H.O. though the amount involved was too small to bother with.

I rejected a takeover offer from a UK company because I was having too much fun.

When I finally sold out after 20 years, it was to a JV between the GM of a different giant UK company, in partnership with a large investment bank.

Don't ever think competitors are too massive to lose some market share to you.

Walter

Haha shucks. Well it's hard to argue against this kind of thinking.
Posts like these are exactly why I joined this forum. Thanks Walter

 

[Kingsta]

Excellent point. When you say interested in this space, what space exactly are you talking about?

Freight forwading / logistics

 

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[Ravens_Shadow]

Our competitors have been around longer than I've been alive and they are definitely at the top of their game, yet, we're slowly taking their customers from them one at a time. Our goal is to become #1 in our industry and it really is a David vs Goliath situation. It's not easy by any means, but it is possible. As @Kak says, think big, and then think bigger than that.


Go into an industry, provide value, improve on ideas or processes, and then execute day in and day out and you can do it.

 

[Lyinx]

If you want to succeed long-term , you either have to be BETTER than the competition or you have to be DIFFERENT than the competition.

Which one are you striving to be? And do you have a plan to (objectively) achieve it?

Being BETTER is the easier path, but often harder when you're up against big competitors. Being DIFFERENT is often the more difficult path (it requires innovation), but is often a more optimal choice against large competition.

Go read the book The Innovators Dilemma... It may give you some insight on why big companies are often at risk of losing significant market share to smaller companies -- especially those companies that have succeeded in being DIFFERENT.

If you want to proof your business against competitors taking over your niche, make your company lean thinking. your employees become empowered to create change for the better, and will constantly be trying to lower the cost (which keeps your costs low to the consumer as well)