Monday, May 07, 2007

small player vs big player

What can a novice player bring to market that a established player cannot?
There are four types of player in the market. The vertical/horizontal player, technology provider and service provider. The fourth is the small player.
The vertical player has employees, management and customers. Its employees follow processes to satisfy customers and internal housekeeping driven by the vision and directive of the management.
Information flows from management to employees and back, from employees to customer and back and sometimes from customers to management and back. There are also industry analyst and market trends that influence decision making capability of management. Also there could be innovation that could come from anyone of them that could influence disruptions in current processes or business models.
The technology provider are also similar to vertical player except that their customer are vertical player/enterprises or consumers. They need to maintain a product portfolio in line with market trends and customer current and future needs. They could also influence decision making of their customers using industry data and mapping it to their product portfolios.
Then there are service provider who have one or both of above as customers. Their employees are mostly well qualified and well trained knowledge workers. They need to fill the gap between the above two. Sometimes it could be system integration where they integrate diverse systems of vertical player using their diverse pool of skilled knowledge worker. They could support technology provider with support and development. Sometimes their vision can be aligned and they could partner on equal terms.

The small players have the speed and focus into growing into any one of above. The key is identification of niche market that is untapped and provides growth opportunity.
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