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Insights and Opinions: Creating High Barriers to Entry

Story by Brian Horakh

 

For our Insights and Opinions article today, Brian Horakh, CEO of Del Mar-based Zoovy, a developer of e-commerce software, gives some hints and tips on creating a high barrier to entry.


If your business is a "me too" entrant into any market niche, even the smallest success will soon attract competitors that will sap some degree of your potential growth. In the past 200 years, niche retailers were geographically bound due to the relatively high capital costs of establishing and operating a niche business and developing repeat clientele. Today with the Internet and the advent of virtual/drop-ship inventory, anybody can start up a niche retailer with minimal capital. That means unless you happen to stumble upon a magic lamp and use one of your three wishes, you're eventually going to end up scrapping it out with several competitors.

It's been consistently demonstrated that the key to holding the coveted top dog position in a niche is to focus resources on a long term sustainable advantage rather than a more traditional focus on short term sales targets. This is never more true than with the Internet, where competitors are only a few keystrokes away. (More..)


Read all of Brian's advice on Creating High Barriers to Entry.