“If you want to be successful in business, you need to welcome your competition with open arms – just don’t let them walk all over you. Strike the right balance between respecting your rivals and focusing on how you can beat them, and you’ll have a winning formula,” explained Richard Branson in a recent Entrepreneur blog.
Every business has competition — both directly and indirectly. So, how should you deal with competition in your industry?
Whether you’re a Startup owner or veteran, you need to know how to deal with competitors in business.
Competition is healthy for businesses – it will force you to innovate, staying ahead of the curve
To achieve success, especially in its early stages of growth, a company must stand out… which requires differentiation in product, service, process, or marketing.
But difference can be easily copied by competitors. Enduring difference can only be maintained through a Unique Selling Proposition.
Learn How to Deal With Competition in Business
You will encounter competition in business at some point of time. So how do you develop a strategy to compete with competitors?.
Read on real-world ideas of strategies you can use to learn how to beat your competition in business.
Do the market research before you launch
Before you launch your startup, you study the market. Startups are about the opportunities, and to identify an opportunity, the founding team needs to do market research.The worst way to start the company is to start without understanding the market.
Understand the Competition
Growing your business without understanding your competitors is risky. Market research can prepare you for changing markets and prevent your business being left behind by the competition.
Competition comes in many forms. Direct competitors are easy to find because they sell the same product you are selling. Indirect competitors are those who are competing for the same market with slightly different products ,it is sometimes harder to identify them.
Here are 4 steps you can follow to conduct your own competitor analysis.
- Identify your competitors .
- Gather information about your main competitors.
- Analyze the competition’s strengths and weaknesses.
- After analysis take the necessary action to cope the competition.
Improve your customer service.
Customers are the core of every business and should always be your top priority.
Did you know 80% of companies don’t have enough customer data to build effective marketing campaigns?.
People love businesses that provide exceptional customer service. If you delight your customers with great service, you’ll make loyal customers who will refer your business to their family and friends.
McKinsey & Company says that:
“Today’s consumers do not buy just products or services – more and more, their purchase decisions revolve around buying into an idea and an experience”.
So if you want your customers to like you, you need to deliver the best customer experience, at all times.
Learn from your competitors
Our competition isn’t just there to beat. They can also teach us how to get better at what we are doing so that we can beat them at their own game.
You can learn a lot about buying trends and buyer behavior by looking at the offerings, pricing, and marketing tactics your competitors are doing.
Here are First Market mover advantage and Dis advantages:
Being first out of the block undoubtedly has its advantages, and in the case of the dot-coms, those advantages were exaggerated to the extreme.
First-movers often enjoy premium prices, capture significant market share, and have a brand name strongly linked to the market itself.
First-movers also have more time than later entrants to perfect processes and systems, and to accumulate market knowledge.
First-mover Disadvantage :
The challenge for first-movers is that the market is often unproven; industry pioneers leap into the dark without fully understanding customer needs or market dynamics.
First-movers often launch untried products onto unsuspecting customers; and it is rare that they get it right first time. Later entrants have the advantage of learning from the mistakes of the first movers, and from entering a proven market.
They are also able to avoid costly investment in risky and potentially awed processes or technologies. Followers can enter at the point at which technology and processes are relatively well established, with both cost and risks being lower.
There are numerous examples in corporate history of first-movers that were unable to achieve or maintain a competitive advantage.
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