In discussion sometime ago, a friend asked “Why do businesses that are similar in nature always seem to set up shop next to each other?” She went on to say that she had observed in metropolitan countries how all the fast food restaurants are lined up alongside each other. Where there is a McDonald’s, there’s a KFC, there’s a Wendy’s, a Burger King and even a Nando’s! Even here, DIGICEL and LIME are in close proximity to each other. She was puzzled as to how this could be good for business.
Indeed, competition is healthy! There are benefits to setting up next to the competitor. Let’s take a look at some of these.
Fosters Innovation: Competition promotes creative thinking. If you’re working in a crowded market, you won’t succeed by doing what everyone else does. Healthy competition encourages change, which will distinguish your company from others through technology, product alterations or by improving the customer experience. Creative thinking is the foundation of any success-minded enterprise!
Improves Customer Service: As one of several companies offering a similar product, you are forced to compete for customers. The onus is really on you to determine how to retain these customers who walk through your door. The key to this lies in your level of customer service. Great customer service will garner loyal followers.
Stops Complacency: Competition pushes you out of your comfort zone. It forces you to constantly review your strategies with a view to maintaining your strengths and working on your weaknesses. Competition keeps you on your toes. It makes you try harder to get better.
Provides an Education: Seeing what your competitors do well can teach you certain things about your business. Their practices will provide you with valuable insight into the state of the market, and help show you what works and what doesn’t
Lowers Business Costs: There are benefits to be gained from your competitors’ research results! Yes, why reinvent the wheel? Your market research will cost less thanks to the information gleaned indirectly from the competition.
So, don’t be afraid to take on the competition. If you are, you leave room for failure to set in.
