I've already stated implication of supply/demand in your business strategy. Now consider if there's absolutely no supply of any product, but you can identify a human need in an existing market. Boy! You just broke bank.
That's exactly what happened with Amazon.com. That's what happened with Yahoo. That's what happened with a host of success stories that has glaring effects on our minds.
Yahoo is perhaps best example to demonstrate power of filling a gap in an existing market. In marketing lingo Yahoo identified a market niche.
Everybody knows it was a basement startup. But since Yahoo sensed, anticipated, and then fulfilled a basic need of people wanting to get exposure through a workable means, it went beyond success limits.
Yahoo didn't maintain top 10 or 20 search engine positions rather it pioneered search engine directory itself. People have no choice but to submit their URLs in Yahoo directory. By way, have you heard of Yahoo? Okay! Okay! You got it. :-)
I'm certainly not saying that everybody on planet posess same mindset like Jeff Bezos of Amazon.com, or Tim Koogle of Yahoo. But as Jim Rohn once said… "Human beings have remarkable ability to turn nothing into something. They can turn weeds into gardens and pennies into fortunes", you can be sure not to loose hope.
Think about it. Does it make sense to you selling over-saturated products aimlessly to masses? Especially when there exists a cut-throat competition? Look outside window. Sometimes if guns don't work, it's always a good idea to make use of a cannon.