5 Reasons Why Competition Is Good For Your Business
Have you ever thought marketing your small business would be easier without competitors; most of us have at a time. Whilst you shouldn’t be fixated on your competitors you can’t afford to ignore them. Having competitors is healthy and here are 5 reasons to welcome competition in your business.
Competition fosters innovation
The existence of competition can have an outstanding positive impact on your business. First, your competitors will lead you to perpetually update your core strategies in terms of the quality of your products/services, communication channels and customer services. This ongoing movement will help in well re-positioning and leveling the sale of your products/services within markets.
Competition validates your idea
You know you have a good idea when other people are coming up with similar products or services. Competition validates the market and the fact that there are most likely customers for your new product. This also means that the costs of marketing and educating your market goes down.
Competition forces focus and differentiation
Without competition, it’s easy to lose focus on your core customers and start expanding into areas that don’t serve your best customers. Competition forces you and your business to figure out how you can focus on your customers. In the long-term competition will help you build a better business.
Competition drives down business costs
You can also benefit from your competitors’ research results and use the latter as secondary data to either update the strategy or develop innovative product/service line; thus, the market research costs less funds thanks to the information provided by other companies to design competitive industry on the basis of the characteristics of the existing products.
Competition makes your customer service better
As a business owner competition should motivate you to set a higher standard of customer service. And this does not necessarily mean having lowest prices. You can build customer satisfaction through trust, meeting expectations, and actually listening to what your customers have to say. Believe it or not brand loyalists are not motivated by price, they are motivated by value and feeling cared about.
Here are few more reasons why you should welcome competition
- When your competitors teach their customers on how to use their new products or services, they make it easier for you to explain and sell it too.
- Helps grow your business and market
- Provides opportunities for creative thinking
- Allows for working together on common industry or market issues
- Helps identify potential threats to your business
- Helps your strengths and weaknesses
- Provides an alternative for customers who are not good fit for your business
- Helps you to work smarter
What other reasons can you share with us from your experience with competition?