At The Startup Expert ®, we will show you how to take advantage of your competition. The definition of competition is the act or process of trying to win or acquire something, but with others seeking the same goal. In a business perspective, competition occurs when two or more companies provide products or services to a specific group of consumers.
There are two types of competition in business. One is the direct approach while the other is an indirect approach. Direct approach is where two or more companies sell similar products and services to consumers. The indirect approach is when two or more companies sell different products and services to consumers, but is in the same area.
There are many competitions in business examples. Convenience stores and restaurants are pure competition examples because there is little advantage over one another. Banks, insurance companies and car manufacturers can be considered as oligopoly examples, where they have very similar products but fairly few sellers.
There are several pros and cons of competition in business. Let’s talk about the cons first. Competition in business is tough, especially if there are many companies in the same industry.
Competing with others can be very challenging. Some companies also imitate others, but could turn this into an advantage once it becomes an innovation. There would be some lost opportunities and there is a chance that business growth may be neglected. It may also create stress and bring out negative feedbacks at work.
Benefits of Competition in Business
Here are the benefits of competition in business. Take advantage of these!
Because we want to make your company the best in the industry, we can find ways and create original ideas to help make your company unique, thus making consumers choose your company over others.
We can make adjustments in your products and services, add features or change tactics by promotions or other strategies to make your company stand out from the rest.
Quality of Service
Your company can gain a competitive advantage by decreasing costs and minimizing production with greater quality of results. Just remember to never sacrifice quality just to reduce costs for consumers to have a positive experience with the products and services to have repeat customers or for them to come back again.
Complacency: Better Motivation
Once a company becomes a trusted brand, they may become complacent. Always create a competitive advantage by focusing on service, quality of service and product quality. Boost core strengths in the company. Also examine your business to better motivate yourself in acquiring more customers.
Understanding Your Core Market
Learn from the mistakes and the successes of other companies. You can also attack their biggest weaknesses when the time comes and you should be flexible with your strategy. Maintain that competitive advantage/edge by forming an alliance if necessary.
Include competition in the business plan. As the saying goes, “Keep your friends close, but keep your enemies closer”, we can help you utilize your competition to make them a valuable tool for your business. Just because they are competitors doesn’t mean that they can’t help you. For further information about The Startup Expert ® and how we can help you, please contact the Startup Expert ®