Dead Sea Markets.
A fascinating term. A term that suggests a market that has pretty much killed every entity in it (due to various reasons) but could still serve as a fertile ground for new entries and perhaps entire ecosystems.
Why is it so fascinating? Because it essentially provides a ‘firehose’ option. An option where if you can come up with the right thing, the right solution, customers will already be flocking looking to try and perhaps even buy. You don’t have to build and convince people there is a market, which is a huge advantage.
And yet, we often overlook these opportunities. We tend to find these industries and verticals slightly ‘tired’ and even ‘boring’, because it seems like every bit of oxygen has been sucked out of it.
And it may have been – if we look at the incumbents already trying to play in the industry.
But isn’t that exactly what we are looking for; a tired, boring incumbent underserving or even sunsetting a market, we could have the opportunity to serve way better?
My point here?
Don’t only look for highly profitable markets looking for opportunities to disrupt them. Look also for the ones that seems like they are dead, without air or any kind of energy.
Ask yourself this: Is it so because there really isn’t anything there at all? Or is it just because the ones already there are not really there?
Often you will find it’s the latter. Which should be your signal to consider an entry. Because chances are nobody else is having the same idea. Or just feels it is too hard (which, full discretion, it may indeed turn out to be).
And because you might be able to turn a Dead Sea into a Blue Ocean.