The majority of the time, regardless of the industry you are entering, there is always going to be competition. Someone who sells or does a similar thing to you.
Some business owners go into absolute turmoil when a new competitor comes to the market & can often end shooting themselves in the foot if they don't act positively.
Here's why, in my opinion, competition in business is healthy.
1. Networking and business relationships.
Networking, if done right, is effectively a free advertising tool. Building a relationship with competitors can help to establish your place in your market. Chat, absorb and offer advice publicly.
2. Innovation
Competition is great for encouraging innovation within a business. It gives you the opportunity and the nudge to think outside the box, differentiate & make your business stand out amongst the rest. Competition prompts you to identify a USP, and show your customers why you're the one to choose!
3. Learning Curves
By watching & observing a competitor, you can look to identify issues that might also relate to your own business. If a customer of theirs is unhappy with their service, look to see why, and whether a similar problem could come up for you & then change it before it does.
Likewise, if a company is receiving praise, look to see why & relate it back to you. Do you offer the same perks? Can you match or better them?
4. Customers Benefit
There's nothing worse than not being able to help a customer find the specific item they need. Having good relations with companies in your industry means that, generally, if you can't directly help a customer, you know someone who can! A quick recommendation can go a long way and 9 times out 10 that same business will return the favour. Plus the customer sees you both as mature, and professional organisations who go the extra mile to help their clients. A win-win if you ask me!
5. You Identify Key Customers
Competition helps point out who your key, loyal customers are. Focus on these! They are, after all, the people keeping you afloat. By catering to them, you are reinforcing in their minds why they choose you, and the likelihood is, that if they're constantly happy with what you provide, they'll talk about it and the word will spread.
6. Gets People Talking
Did you see the 'rap battle' on twitter between O2 & Tesco Mobile? The two big wigs were battling it out to show who could provide a better price plan & service for their customers. Each of them made relevant points in a fun and light hearted fashion. With over 800 retweets & lots of customer responses this shows how good relations can involve and encourage customers to talk and get involved!
There are so many more reasons why competition in business is healthy, but these are just a few to make you think about.
Do you have any more you'd like to share?
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