Entrepreneurs have tried to define and predict market behavior for centuries. This is because understanding how the market works is crucial to an enterprise’s success. One of the most basic things to understand about market behavior is its nature. What kind of market does an entrepreneur want to penetrate? Is it competitive? Can it be monopolized? Can it be dominated? Can it swallow a product, chew it, but then quickly spit it out?
A lot of start-up companies make the easy mistake of approaching the market from the wrong angle. This happens because they failed to analyze what type of market it is and what is the most appropriate strategy to use to enter it. This is simply brought by market oversight. Visionaries fail to see where their product fits in the bigger picture; hence, the product gets rammed down the throats of potential customers. What can be more off-putting than a product being forced onto consumers? Therein lies the mistake.
The ironic thing about this product-killing trap is that it could have been avoided from the start. Entrepreneurs could have steered their companies far from this vacuum from the beginning. Entering the market without a proper strategy is a lot like gambling – there is a chance you can roll a good dice, but the casino will always win. Vishen Lakhiani (CEO and Co-founder of Mindvalley) talks about how to save a business from this pitfall through the use of the art and science of Market Sophistication.