At least during stressful times of business, business people think that it would have been better if there is no competition in business. But, this thought arises because of lack of knowledge on how to utilize competition for the growth of your business. Competition is to be considered as an important aspect of economic growth. The fact is that competition benefits not only consumers, but also businesses in different ways.
Innovative Thinking
Competition makes you think more innovatively which is necessary for the growth of your business. Suppose, yours is the only business in a particular industry and of course you have complete control of the market. Then, you do not have to think on how to satisfy your customers more than your competitor as there is no such competitor. You are the only option for your customers and they have to be satisfied with what you provide whether it is service or product. Thus innovative thinking does not become a necessity which makes you inactive in thinking. But, competition necessitates innovative thinking as you cannot survive without it. You might have to adopt new technologies or business strategies to stand out from competition.
Quality Service
You might not focus much on quality of service you deliver if there is no competition. As there is no other go for your customers, your products might get a boost in the market though customers are not actually satisfied with your service. Quality of service is a key to customer satisfaction. When competitors are around you, you would be forced to provide better quality service. This will lead to more customer satisfaction which of course benefits you in long term.
Better Knowledge about Customer Preferences
As far as there is high competition, you get better information about customer preferences or requirements. When your competitors make more profit than you, it means that they have adopted some great techniques to attract customers. It could be better service, low prices etc. So, you can study strategies that your competitors adopted which makes them successful. Thus, you can easily know the pulse of your customers and this can be utilized to make your business successful. In short, you get better ideas that you can make use of.
Better Motivation
To stand out from competition, you always need to be highly motivated and try to remain as a better business owner in the industry. You really become proactive, alert, creative and above all focused. You stop being complacent and always think of better ways to satisfy your customers. You never wish to go down and you become a real hard working at the same time smart individual though it might be to stand out from the competition. You try to reinforce your strengths and overcome your weaknesses. Altogether, you become highly motivated to achieve great heights.
Tim enjoys blogging about business strategy and enterpreneurship. Over the last 4 years, Tim has written numerous articles on the topic and has been an active contributor in business forums. Aside from blogging, Tim works at customgear.com.au, a company specialising in promotional products.