Everywhere we go people are talking about recession/downturn and a gloomy economic outlook. In fact some studies show that more millionaires are made during a downturn than during a boom.
If you have a relatively small market share in a fragmented market, this is your opportunity to grow market share. Why?
1) Some of your competition may go out of business. This will mean that you have a new potential market which needs your service/product (albeit in reduced quantities)
2) Your consumer may now have a reduced budget. Overall your market will shrink – perhaps from RM100million to RM70million. Is that a large contraction? Yes. However, in your fragmented market, your business may have 1% or less market share. That still gives your organization large room for growth while some competitors shut down.
3) Your product pricing may have to be amended. We are currently offering a product where we tie in our fee with the customers performance. If their organization increases its profits, our fees increase with it.
Do post your thoughts on this.
