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Marketing

In: Business and Management

Submitted By naveenshetty2005
Words 1328
Pages 6
“An opportunity if not exploited, can turn into a threat for a company”

Introduction:

About STARTUP companies fail?
In today’s peer group or in industrial trends, every individual wants to start-up something new products/services lines in Industry. Scrutiny for start-ups are:

• It might be because of existing industrial success rate in start-ups • Dominant vocalizations • Due to financial stabilization, • Having minimal skillset in one particular area of interest and finding sensation factor in it can turn into Start-up! • Availability of resources in industry, • Industrial challenges and demand and supply • Risk taking attitude • Innovation • Business process maturity

They create new markets, disrupt old ones, get ridiculous amounts of money from venture capital firms, throw wild launch parties, have the best-looking offices — the list goes on. But is it really that easy to reach startup fame, or do these idyllic stereotypes hide a harsher truth?
As it appears, the reality is harsh indeed, because 90% of all startups fail. That sounds horrible. Well, let that sink in. It counts for just 1% of total startup funding, as 82% of startups are self-funded and 24% of entrepreneurs rely on friends and family to keep their business dreams afloat. As for wild parties and lavish offices, the more extravagant they are, the more money is being thrown away, reducing the chance of success and abusing the trust of investors.

What is the main cause death of startups?
Common reason for failure, doing good things, but doing them out of order. In other words, they are doing things that seem to make sense, like investing to build the product, hiring good people to help them sell it, developing marketing materials, and essentially doing all the kinds of things that big companies with lots of resources do when they are executing on a known opportunity.”
The issue here, however, is that these investments make sense only when there is extensive pre-existing market research supporting them, or years of sales data that justify the risk. In the majority of documented cases, instead of assessing the risks and opportunities objectively and scaling those investments accordingly, startups rely on guesswork, giving more credit to their vision of what the future may hold, rather than examining real facts. This is understandable, as many startups bring new and never-before-seen products to the market, but this is also why they need to manage the process of coming to the market differently.

There are sufficient market study on start-up fail, are: • No Market Need • Ran Out of cash • Not the right team • Get outcompeted • Pricing/Cost issues • Poor product • Need/lack business model • Poor marketing • Ignore customers • Product Mis-timed • Lose Focus • Disharmony on Team/Investors • Pivot gone bad • Lack of passion • Bad Location • No Financing/Investor interest • Legal Challenges • Don’t use network/Advisors • Burn out • Failure to pivot

Body

Having a strength greater than your competitor is irrelevant unless it is an important factor in customer decision making. As a start-up, how do you pinpoint these strengths? What can you do about it?

If you have many competitors, and they offer equally attractive products and services, then you are unlikely to have great grip with customers. However, if no-one else can do what you do, then you can have a big advantage as long as the customer has a need that your services can address.

The use of SWOT Analysis allows a start-up business to identify your strengths, minimise your weaknesses, take advantage of opportunities and overcome threats. It helps you to set up your business for success by addressing three key issues, as seen through the lens of customers:

YOUR STRENGTHS: What are your key advantages in relation to problems and opportunities as defined by your target customer segment?

YOUR VALUE: How do you develop a value proposition such that your target customers easily identify your strengths as directly relevant to solving their specific problems?

YOUR DIFFERENCE: How do you differentiate from your competition to make it easier for your prospective new customers to select you?

A SWOT analysis provides a valuable framework for reviewing the position and direction of a business. It helps refine your business goals, your objectives and your strategies

Strengths and weaknesses are internal factors which you have some control over, whereas opportunities and threats are commonly driven by external market factors.

STRENGTHS AND WEAKNESSES: The focus is on the present - this is the internal environment inside your start-up that you can shape. Factors relating to products, pricing, costs, quality, people, brand, services, reputation, processes and infrastructure are things to be considered.

OPPORTUNITIES AND THREATS: The focus is on the future – this is the external environment outside your start-up. Factors relating to target markets, seasonality, competition, economics, politics, regulation, culture, technology, media etc. should be considered here.

Once you have completed the SWOT analysis, you should review the results to help decide the next step for your business growth.

Here are five tips to help you understand, evaluate and take advantage of your SWOT analysis when applying it to the growth plan of your start-up business.

1. USE SWOT TO BRING YOUR TEAM TOGETHER: A simple and fun session to discover your new business can unify your team and stimulate them into action around the few key factors that come out of a SWOT analysis session.

2. NARROW YOUR FOCUS TO CREATE OPPORTUNITIES FROM YOUR STRENGTHS: How can you leverage your Strengths to create new Opportunities? How best should you introduce your new product or service to your specific target customer segments? How can you concentrate on a few actions, rather than spread yourself too thin?

3. DON’T IGNORE YOUR WEAKNESSES: Think through what it takes to turn a Weakness into Strength, and any Threat into an Opportunity. Can you test your new product or service with customers such that Weaknesses are addressed before initiating it? Are you properly informed and organized to deal with these issues?

4. IDENTIFY OBSTACLES TO YOUR GROWTH: If there are any Threats that could impact your future growth, how can you address them? For any remaining Weaknesses, how can you remedy or even abort launching this line of business until you have specific plans to mitigate them?

5. COMPETE ON YOUR OWN TERMS: A powerful method to discover your competitive advantage is by comparing your SWOT with that of your main competitor – side by side. Every competitor has weaknesses. Rather than defend yourself against your weaknesses, it can be useful to emphasise how your strengths bring benefits to the customer in areas in which your competitor has weakness. Likewise, it is also critical that you do not take on your competition in a customer segment where you are weak and they are particularly strong.

If executed correctly, a SWOT analysis helps you craft a strategy that helps differentiate yourself from your competitors. It helps you compete successfully in your chosen market - on your terms. It helps you focus on your key strengths to take the greatest possible advantage of opportunities available to you.

Conclusion:

When these startups grew, they directly impacted growth of their cities as well. Employment opportunities for youth increased and new employment patterns came into picture. Demand and employment opportunities for engineers saw a steep rise. Local youth had new opportunities to pursue, and experienced talent started moving to these cities in pursuit of a challenging and high-growth career.

As demand for highly talented youth increased in these cities, they saw a surge in inflow of recent graduates. As more and more college graduates started settling down in these cities, lifestyle patterns and culture also saw a wave of change.

These startups not only created new industries and came up with more revolutionary technology over time, but also created a stream of millionaires in the city. When these startups went public, they became engines of creation not just for themselves, but for their employees and their shareholders.…...

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