It may not always feel like it, but competition is actually good for business. Remember that kid at school who was always a few strides ahead in the cross country or the one who just beat you in every maths test? Although they drove you crazy, those kids probably also inspired you to work harder and do better.
It’s like the old adage; keep your friends close and your enemies closer. Knowing who your competitors are, what they are doing well and what they are not doing will help your business grow and thrive. Here are our top five reasons why competition is good for business:
Imitation maybe the sincerest form of flattery, but if you really want to win new customers, it takes innovation. You won’t get ahead by doing the same thing as all your competitors. Healthy competition drives change that will set you apart from your competition.
Competing for customers means you’ll have to do everything you can to keep your customers happy. A small loyal customer base can be more valuable than a large unreliable customer base.
You can learn a lot from your competitors. Watch carefully to see what they are doing well, what they are not doing and even what you think they should be doing. By scrutinising their practices, you’ll learn more about the market, your customers and, ultimately, your own business.
When you’ve got competitors nipping at your heels, you can’t afford to be complacent. You’ll have to look at new ways of doing things – faster, cheaper, smarter – just to stay in the game.
Competitors need not be your enemies. In fact, they could be your closest allies. Collaboration between competitors can take the form of joint ventures, outsourcing agreements, product licensings and cooperative research. It takes money to develop new products and penetrate new markets – a strategic alliance can benefit both parties and produce great results.
Just imagine you are the only player in your field. What would drive you to grow, change or evolve? No business can survive by doing the same thing in the same way forever – so be thankful for your competitors, they have the power to propel you from good to great.
Competition is good for business, checkout more on how to grow your business for the day you sell.
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