SUBSTITUTE GOODS

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Substitute products or goods are those that can replace another product or good on the market, satisfying the same need or function. In the context of entrepreneurship, knowledge of substitute products or goods can help entrepreneurs to identify business opportunities or improve their current offer.

Examples of substitute products or goods are

• Alternatives to fossil fuels, such as solar or wind energy.
• Organic or natural products instead of chemical or synthetic products.
• Shared transport services instead of taxis or personal vehicles.
• Vegetarian or vegan foods instead of foods of animal origin.
• Digital or online products instead of physical products.
• Meat substitutes, such as vegetable or lab-grown meat.

In general, substitute products or goods may arise from technological innovation, changing consumer values or preferences, or the search for more sustainable or cost-effective alternatives. Identifying relevant substitute products or goods in a market can help entrepreneurs develop differentiation and positioning strategies and adapt to trends and changes in the market.

Practical examples of substitute products

Examples of substitute products include:

1. Vegetarian or vegan foods as substitutes for meat and animal products.
2. Shared transport services as an alternative to traditional taxis.
3. Mobile applications for buying and selling second-hand goods as an alternative to buying new.
4. Renewable energies as an alternative to fossil fuels.
5. Craft beers as an alternative to the larger, well-known beer brands.
6. Educational and didactic toys as an alternative to conventional toys.
7. Second-hand clothing and accessories as an alternative to fast fashion and buying new.
8. Ecological and natural cleaning and personal care products as an alternative to conventional chemical products.
9. Streaming platforms for audiovisual content as an alternative to traditional television.
10. Mobile payment systems as an alternative to conventional payment methods such as cash or credit cards.

How should you identify business opportunities with substitute products?

To identify business opportunities with substitute products, it is important to follow these steps:

1. Identify the target market: Determine which market you want to target with your substitute product. Research the needs and wants of your target audience, and find out which aspects of the original product do not fully meet their needs.
2. Analyse the original product: Assess the features, benefits and limitations of the original product you want to replace. Identify areas where your substitute product can be improved to appeal to consumers.
3. Investigate the competition: Research competitors offering similar or substitute products in the market. Analyse their strengths and weaknesses, and find out how you can differentiate yourself from them by offering something unique.
4. Assess feasibility: Determine the feasibility of your substitute product, including technical feasibility, profitability, market size and relevant regulations.
5. Develop a marketing strategy: Once you have identified a business opportunity with a substitute product, develop a sound marketing strategy to attract consumers and grow your customer base.

Remember that offering a substitute product does not necessarily mean copying the competition or imitating their product. It can be innovative and creative in offering a different and better solution to an existing problem in the market.