How an entrepreneur reacts under pressure from his competition says a lot about how successful he is going to be in the future. Successful entrepreneurs don't view competition as an obstacle; they see it as an opportunity to learn new things. Most of the time, you are your own biggest competition. Healthy rivalry needs to be encouraged as it helps one work smarter with the resources they have. Even if your competition lowers their prices and steals your customers, think of ways on how you can get back in the game stronger than you were the last time around. Here are five ways competition can improve your business.
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When brands similar to yours are competing in the market for the same target audience as yours, you will be pushed to make your brand stand out as the leading authority in your industry. However, if there is no one giving you competition, you are bound to slack sooner rather than later. When you establish your domain of expertise in your industry, your customers will applaud your thought leadership and choose your products over those of your competition.
Your rivals will force you at some point to self-evaluate and find out your strengths and weaknesses. Once you are successful in identifying your strong points, use your power to create a product that is unbeatable. At the same time, pay close attention to your shortcomings as you don't want your weak points to be your downfall.
If you have rivals in the market, you will know that one brand or the other is constantly trying to gain one-upmanship over you by bettering their marketing techniques or improving their customer service. When this happens, you should be able to differentiate your offerings from that of your rivals to survive in the market.
If you're the only one in the market selling a particular kind of product, it means that there is not much of a market to cater to in the first place. Competition signals strong consumer demand, which validates the existence of your business. It also gives you an opportunity to popularise emerging trends that will get consumers excited about your work.
When there is competition in the market, it gives you the opportunity to create alliances with like-minded businessmen. It leads to an exchange of tools and technology and cross-promotion of each other's products. It might even lead to collaboration with your rivals to educate your target audience about your products and you might perhaps acquire or merge with your biggest competitor someday.
Great businesses know how to work with competition. They don't allow rivalries to have a negative impact on their business. Instead, they take full advantage of the opportunities that their competitors provide them with and take their businesses to even greater heights.