How to position Software Products
What makes the software products click. Here are some of the thoughts
Find a niche area
If we are planning to enter a space, ask these questions, will this product catering to a niche area? Are there any competitors? In what way is the product placement unique?
Once a software product is developed, the cost of distributing the software is almost negligible. Due to this, first-mover has a huge advantage. Once a product resonates in a market, companies can scale and sweep the market effortlessly. It creates a situation where early movers take all.
Going for a product specific to a market segment with no competitors is better than targeting generic market segment.
Aim for monopoly
Though most successful companies say they are not monopolies, if you closely analyze them, we can see they cover a market share of more than 60% to their next competitor. Google, Facebook, Microsoft or Apple, are almost a monopoly in their business. The chances of their immediate competitor gaining ground is almost limited.
Don’t mirror your competitor
We have repeatedly seen that if an X company comes up with a feature, the Y company copies the same. Over a period, all the products look similar. Look at the Android phone market, and almost all the phones look the same. It is very hard to differentiate between the products.
Find a way to make yourself unique.
Reinvent your products
Always find a way to reinvent. If you want to cannibalize your product, do it. Don’t let the market or competition determine it.
