Why Having a Tough Competition is Good for Your Business
You might panic upon knowing that your business has some serious competition. You worry that you won’t reign supreme anymore. You also believe that the competitor will pull your business down. Before you panic, realize that having competition is good for business. Here’s why.
It keeps you on your toes
When your company is always doing well, it makes you complacent. You know that profit will always be there. You will also have loyal customers who will keep buying from you. When you have competitors, you will worry that even these loyal customers will consider jumping ship. You also know that the presence of an option will reduce your target audience. Hence, you will always be on your toes. You will be more innovative. Settling for what you currently have won’t be an option. You will also let go of the formula you believe will work forever and try something new. The business will benefit from innovation in the long run.
You will be more protective of your employees
You might also take your employees for granted. When they do the job well, you believe it’s enough. The truth is they can always go for your competitor. They have the skills necessary to keep the other company running. When you don’t give them what they deserve, they can explore other options. The competition will let you incentivize your employees even more. You will listen to them and consider what needs to be done to improve retention.
You will consider partnerships
When you run the business alone, you won’t do well. You need other businesses to solidify your place in the industry. These partnerships can help boost your image and expand the market. It also elevates your brand and make your business an establishment. Your competitors will look small in comparison. They will have a lot of catching up to do to get to where you are.
You will improve customer service
You might also take your customers for granted since you believe they will buy from you no matter what happens. They won’t consider brands that aren’t available locally since they will spend more. When you have a strong competition, you will focus on customer service. You won’t let any customer down. You want as many people as possible to be loyal to the brand. If it means hiring more people to work with customer service, you will do it.
The point is that having a solid competitor is good for your business. There’s a risk that the other business will overshadow you, but you can’t let it happen. You will do whatever it takes to maintain your position in the industry. Besides, many people will be curious to see a shiny new object. They will eventually return to a trusted brand. If you’ve managed to be the top choice for years, the arrival of a competitor must not bother you.
Photo Attribution:
1st and featured image from https://unsplash.com/photos/ZKHksse8tUU
2nd image from https://online.hbs.edu/blog/post/sources-of-competitive-advantage
