The Advantages Of Having Competition In The Business World
In the business world competition is often viewed in a very negative way
. However this does not have to be the case, competition can benefit you and your customer. This article will cover just a few of the advantages of having competitors.
Firstly having competition will keep you on your toes. It will prevent you from becoming lazy and too comfortable in your business practises. It is too easy to become comfortable in your business. For example if youve got a product that everyone wants and no one else has then it would be hard not to become confident and relaxed, it is after all a great position to be in. But what happens when another company offers a similar product but slightly better, suddenly you feel the pressure and you find yourself looking for ways to better your product and improve your customer service skills. Its like superman without Lex Luther; hed probably just let himself go.
Your competition also pushes you to be more and more creative. So youre not the only one selling hats that look like pandas anymore, what can be done? Come up with new variations of the same product e.g. different colours or animals. Rather than trying to copy your competitor you aim to out do them. Furthermore your competition lures you out from your comfort zones. Maybe you had a solid customer base that didnt require much investment but its beginning to shrink. This will force you to find new ways of advertising, and possibly put more capital into your business. While this may not seem like a good thing at the time it may result in a growth in your business that might not of happened otherwise.
Having competition also forces companies to charge reasonable prices. Although this might seem like a bad thing it does have its advantages. As a consumer youre always looking for the best deal possible, and so are your customers. While charging more may benefit you in the short term, it does not in the long term. Customers that are satisfied with a service are more likely to be loyal to a company, establishing this kind of rapport with your customers can be priceless.
Finally your competitors dont have to be your competitors. Business ventures can be extremely profitable to both parties. Maybe you and your competitor can offer discounts to the others customers or even work together when promoting. Swapping adverts in each others newsletters can unlock new markets.