When analyzing the long-term viability of a business, Venture Capitalists look at a variety of indicators. One of the indicators is the industry trend. Is a given industry growing or shrinking? Has it reached its peak? Is it in decline?
Ideally, an industry is growing. In a growing industry there is room for new participants (i.e. new businesses), there is room for growing existing businesses, and there is opportunity for growing market share by innovation. So, if a business comes along that does something better than existing businesses, it has a good chance of capturing a larger percentage of the growing pie of that industry. In a mature industry that has peaked, the barriers to entry are much higher because of stiff competition, entrenched participants with strong presence, and customer brand loyalty.
So, what about Social Media Marketing? Where are we on the industry curve? How attractive is this industry…
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