Article Contributed by Ashley Wilson
Many business owners view competition in the marketplace as a negative factor, but the reality is that a healthy dose of competition on a regular basis can actually benefit your business in several ways.
Competition is good in moderation because it inspires and even requires you to work more efficiently and intelligently, make use of all of the collective talents in your team, and more. The most successful entrepreneurs are motivated by the opportunity competition presents to do better and to think more creatively.
Here are some of the prime benefits associated with the competition in the business world:
1. Increasing Customer Satisfaction
When your customers have multiple products or services to choose from, you are required to improve your company’s customer satisfaction rating. Your customers must be satisfied with the overall experience they receive from your business, or they will quite simply take their business elsewhere.
Competition forces you to be the best that you can be and to find ways to get even better. Not only it helps you provide a better customer experience, but it also helps you deliver more at a more affordable price. After all, customers need to see value in the products or services that you offer in order to feel satisfied.
2. Driving Innovation
When your business faces tough competition in the marketplace, you are forced to find new and better ways to complete your tasks and serve your customers. On the other hand, if there were no one to compete against, you would feel less inclined to innovate and improve.
Competition drives you to innovate in different ways, such as by adopting new technologies or improving your products and processes. For instance, it helps you identify which product features are more or less appealing to your target audience. This gives you an easier and more cost-effective way to test the market before making revisions to your own products and services.
- Improving Business Performance
Your competition may help you clearly identify your own strengths and weaknesses. By paying attention to what your competitors are doing, you can learn from their mistakes and determine similar areas in your business that need to be improved. Your competitors’ own trial and error situations are a valuable learning experience and provide you with the information you need to get the best possible results.
Once you have a good idea of your own strengths and weaknesses, you can begin streamlining your business in cost-effective ways. After all, in order to stay competitive in the marketplace, you need to find ways to improve your business operations and supply services at a lower price than other companies. Fortunately, your competitors will be there to keep you on your toes and motivate you to constantly strive to do better.
- Helping You Develop a Competitive Edge
Without competition in the marketplace, you may feel comfortable keeping the status quo. However, the great thing about your competition is that it pushes you out of your comfort zone and encourages you to develop a competitive edge.
For instance, you may find a way to appeal to more consumers, make your products more appealing or even find a new niche that you can focus your efforts on. Alternatively, you may decide that your best course of action is to focus on a smaller segment of your target market. Whether your competition forces you to find new opportunities or nurture the existing ones, in either case, it helps you push your own boundaries.
Final Words
No business or its products and services are perfect and even the most successful and profitable businesses can be improved in different ways. Not being perfect is what drives competition and competition, on the other hand, is what drives innovation. Once you focus on the positive sides of having a healthy competition, you will find the motivation to make your business even better than it already is.
Author bio: Ashley Wilson is a freelance writer interested in business, marketing, and tech topics. She has been known to reference Harry Potter quotes in casual conversation and enjoys baking homemade treats for her husband and their two felines, Lady and Gaga. You can reach Ashley on Twitter @ashleygwilson.