Conditions can be extremely tough for new businesses entering into a market, particularly if that market is dominated by large, reputable firms and the nature of the product is of a sensitive, trust-driven nature.
That is not to say that entering such a market is a foolish idea. If a company has the right product and pitches it in the correct manner, there is no reason it cannot gain consumer attention and subsequent success.
CNN Money recently demonstrated this in an article entitled 'High-tech security, low price tag: Wireless cameras, remote-controlled dead bolts, and other security tools for a price small companies can afford'.
The piece focused on a business called Schlage, which broke into the securities business with a product aimed at residential and small firm owners by offering ultra-low-cost networked home-security products.
It is likely the company will have achieved an extra boost in their battle for customer attention as a result of the article and the online PR it will have generated.
Schlage's market beating tactic is simply to under-cut the big companies such as ADT, Brinks and Honeywell.
While these businesses offer their equipment, such as remote-controlled cameras, for up to as much as $50,000, Schlage offers start at $179.
The firm sells video cameras, remote-control dead bolts, lighting-control systems, remote monitors and light controllers. All of the equipment is designed to be simple for the purchaser to install, thus further saving on complicated installation expenses.
So simple are they in fact, that the company's solution manager Steven Samolinski says that each one requires "only a screwdriver."
The simplicity of installation does not detract from the product sophistication however, with Schlage offering systems with an ability to work remotely from longer distances.
Using a Bluetooth-type technology called ZigBee, units can connect with one another as well as to the internet. A Schlage dead bolt, camera and control unit can monitor all home or business visitors, check on the general security of the protected area and even adjust the temperature.
However, while the business may be experiencing success now, as the only super-low-cost alternative to the big companies, its time could be limited - Black & Decker is expected to bring out a low-cost product later this year.
Either way, the larger firms certainly have a less-than-secure grip on the market.
© Adfero Ltd
