- They’ve a low barrier to entry making them easier to start.
- There is already an existing wide customer-base. Hence, it becomes a question of standing out. Such markets tend to support many adequately sized businesses.
- Finally, if there isn’t much of a competitive differentiation, then customers tend to stick to whoever is habit-forming and matches their sensibilities.
How to operate: In running a commodity business, there are three primary areas to focus on:
- Owned Identity: Can you tell your story better than your competitors?
- Owned Network: Are you the preferred choice for customers and employees alike?
- Operations: Can you outshine your competitors in efficiency and effectiveness?
Links to this Evergreen Note