Competition can sometimes be painful, and businesspeople can moan about it, but one thing is sure. Competition is essential, even fundamental to a healthy economy. As ancient Roman poet Ovid humorously wrote, “A horse never runs so fast as when he has other horses to catch up and outpace.” But getting ahead of “the other horses” in business doesn’t happen by chance. No, it takes a well-developed competitive business strategy.
The Benefits of Competition
The benefits of healthy competition include:
- Awareness and market expansion. The more competition that exists, the more aware potential consumers are of products and services and that increases market demand.
- Higher quality at lower prices. Competition pushes companies to increase quality, and competitive pressures keep prices lower than if there were no competitors.
- Consumption increases. Due to higher awareness, higher quality, and lower prices, consumption invariably increases.
- Differentiation. Because of trying to separate each brand from others, differentiation and uniqueness exist between brands, expanding consumers’ choices.
- Increased efficiency. As companies battle for consumers, their business efficiencies improve.
- Customer service and satisfaction. As companies implement their unique features and strive for greater numbers of customers than their competitors, their customer service and satisfaction generally increase.
Advances against competition don’t take place without a competitive business strategy.
Why Is It Important to Stay Ahead of Your Competitors
Staying ahead of your competitors can result in more customers, greater sales, increased market share, and higher profits.
Stay Ahead of Your Competitors with These 5 Steps
Staying ahead of your competition requires a competitive business strategy using these five steps:
- Know your competitors specifically and thoroughly.
- Define and know your own customers, their needs, and interests.
- Formulate a business and marketing strategy that will differentiate your business.
- Hire the best employees and create a strong culture.
- Make technology serve you well.
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