If you are an entrepreneur you certainly know what that you know the meaning of competition means as it plays a vital role in how companies go about their respective businesses. The way a company that has no competition is usually very different from the way a company that is in a competitive market runs their business.
Many entrepreneurs get scared at the idea of a competition unable to realize the rare developmental opportunities that a great competition could serve them.
The benefits of having a competition cannot be overstated although many people are unable to see they do exist. For those who might not see the benefits of having a competition well here they are.
Benefits of competition
Helps to avoid the mistake
Every once in a while a company comes out with a new idea or service meant to improve the company’s standing and so very often these ideas are not well received. In business, a slight mistake could go a long way to harm the health of a business. Having a competition helps you avoid such mistakes.
How? You may ask.
Well here’s the answer; In studying and knowing your competition you are able to learn from their mistakes and avoid them. This allows the company to make you aware of what works and what doesn’t. Instead of investing in ineffective advertising by learning from your competition’s failure. You are able to apply effective advertising modules that will capture the market.
Marketing your niche
While it might seem like your competition has the same target as you on closer look it becomes clear that there is a difference. By knowing your competition’s market you are able to discern the differences between your customers and your competitions’. By paying attention to shopping habits, the age you eventually become able to ascertain the sort of people your product appeals to. A good example is being in the t-shirt business which is highly competitive and you are able to identify company ‘Y’ as your major competition. At first look, it might appear that you and company ‘Y’ share the same target audience when you do an in-depth survey and study of your competition closely you will start to see the differences between your audiences and that of company ‘Y’. It becomes clear that you appeal to music fanatics who like your music inclined designs while company ‘Y’ appeals more to animal lovers people who enjoy his animal designs tees.
One foot forward
Being ahead of the competition requires being constantly active, it goes beyond knowing their current activities to know what their next move is. By being able to predict and ascertain your competition’s next move you are able to counter their future steps that might affect you and your company adversely. Take advantage of your knowledge of your competition to always be one step ahead of them. Competition in business is like a game of chess; being able to predict your opponents positions you at an advantage. Use your information on your competition to better them.
Now that you know the benefits of competition. The next step is knowing how to reap those benefits. Below stated are ways you can deal with competition, take advantage of the rivalry to improve your service and make your business better.
Dissecting the competition
Knowing how your competition is cutting into your market is the first step to dealing with it. To dissect it you must be able to analyze his advertising plans and his mode of operation.
Does their campaign revolve around putting a spin on the product you offer?
Or is there an approach a cheaper price.
These are information you must be aware of in order to beat the competition. Gather resources that will help you get any information about your competition. Such information is not hidden in vaults you can easily access them by visiting their websites or going through their adverts to know just how they work.
If you have a competition then it absolutely certain that share the same market because if your competition is not sharing the same market with you then he is not your competition. Since all whatever he does has little or no effect on the market. By knowing your clients and conversing with them you are able to understand what appeals to them and get insights into their opinions about your competition.
This allows you to shape future products using this feedback that is of better quality and appeal. Know what demographic your product most appeals to, why your products appeal to them.
Your clients are the reason why you exist as a company it is only reasonable that you know them.
Plotting against the competition
At this point you are aware of your competition and also aware of the needs and desires this information allows you to draw plans to better your competition. If from your feedback you become aware of the fact that your competition delved into the market by improving their customer service you can craft your campaign around building better customer service to counter theirs. Or in a case where your competition offers a similar product to yours at a cheaper product, you can decide to set to work against your competition by either making your products cheaper or by creating those products at a higher quality. Your knowledge of the competition and market allows you to draw plans that would be effective in usurping your competition and winning in the market.
Adapting to the changes
Whatever plan you come up with whether it is an improvement on customer service or focus on social campaigns, it is a change from your old business model. To apply these changes effectively you must be willing and ready to see them through all the way. For example, if your plan involves improving customer service it means you should be willing to do whatever it takes to improve your customer service. If this means deploying more employees to the customer service department you should be willing to make that change, if it requires training employees to improve customer experience it is something you should be willing to do. Adapting to these changes require that your business is dynamic. Remember that your competition will not rest on their oars either so as you change they will change too. At the end of the day, it becomes a battle that the most dynamic will likely win. Competition at the end of the day can be used to improve your service and make your company better. Remember don’t shy away from it, embrace it, tackle it and better yourself.