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Life is a daring adventure or nothing at all...
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Geoff E
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Here is a crazy notion, lets give peace a chance.
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Sometimes I just sit and think. Other times I just sit.
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Staying in Wellington. Check out my AirBnB in the Wellington CBD. https://www.airbnb.co.nz/h/wellycbd PM me and mention GZ to get a 15% discount and no AirBnB charges.
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Killerkiwi2005: This seems to be a "general" software pattern at any one time there is 1 major player, 1 compititor and minor niche players
OS Desktop - Windows, OSX, linux and others Mobile - Android, Iphone, win and others
Server - Linux, Windows, others Streaming - Netflix, Amazon, (maybe hulu?) other
Online Trading (US) - Ebay, craigslist, other Search - Google, Bing, other
If the pattern holds there's probably room for 1 other player to compete with tradme which at the moment is probably those facebook groups, any one else is unlikly to make a dent in market share (but not impossible)
You are on the right track. It's a common occurrence among most industries. The 80/20 rule. The period of rapid growth in the online auction industry has gone, there is a clear market leader, the market is now mature, therefore so has the opportunity to make great ROI.
Since the online market industry is mature, the only way to make sales growth (besides natural population growth) in the online auction industry is to take clients off the competition (which takes a lot of marketing money) or do something disruptive i.e. start/buy something that is vastly superior/replaces the online auction industry. Like trademe did to the trade & exchange, & autotrader.
Because high growth investment opportunities are limited in mature industries, e.g. utility (phone, electricity, gas), postal services, television broadcasting, etc, companies in mature industries start to diversify, buy up the competition or buy up smaller innovative companies that could become the next disruptive technology.
With reference to the diagrams below, Sam Morgan built Trademe into a Star Business. Fairfax bought that star business a few years before it became a cash cow. Trademe is now a cash cow, but with little investment opportunity in its industry, hence the diversification to insurance. So if the market leader is now having to diversify, it wouldn't make business sense for a newbie to compete directly with Trademe in its own territory, as it would cost a lot of money to buy new customers off Trademe (via marketing) with little upside. A new competitor would be better off finding another industry or get involved in the replacement to the online auction industry (whatever that will be).
http://study.com/academy/lesson/cash-cow-in-marketing-definition-matrix-examples.html
and
https://mymarketingcloud.wordpress.com/the-marketing-environment/portfolio-analysis-boston-matrix/
Read The Star Principle by Richard Koch for more insights, google BCG matrix, or simply go to wikipedia https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix
The above charts, by the way, are fantastic career guidance too, if money and career opportunity are your objectives.
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