Answer by Akshay Sachdeva: Is creating a similar product in a competitive market thats only major point of distinction is a much lower cost to customers a good idea?

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Is creating a similar product in a competitive market thats only major point of distinction is a much lower cost to customers a good idea?

For example, apps like uber or ordering apps, saturated market, but what if you could deliver the service at a 30-40% lower cost (all other things being equal). Is this model a good idea or is it a race to the bottom?

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Akshay Sachdeva Innovation Consultant & Entrepreneur

If your cost is very low, it can be a great idea. Look at Kogan.com that built a successful electronics retail company online, a highly competitive market, but the idea became extremely successful based on his core competitive advantage, i.e. low cost. Just depends on what sort of cost advantage you can provide!

Answered 3 years ago