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Using competition tools to grow your business
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Using the tool of competition to create awareness of a business in an existing market or in penetrating into a new market is not always an alternative to most business people. This is because they view competition in the market as a threat to their business success. Considering the fact that the competitors businesses are competing with theirs for the limited resources of customers or consumers in the market and that business sustenance depends on how much market share a business can acquire, one may not castigate such opinions.
The ultimate aim of attaining a high feat, in terms of market share and patronage that result in higher profits, growth and sustenance of a business over time, makes the businessperson to continually look for ways to gain and maintain market advantage. This indicate that the desire to be ahead in the market accounts for actions directed at changing mode of operation, changing the line of business, relocating the business or re- branding products to meet current innovation and taste.
In an extreme case, actions to remedy low market share might involve folding up the business when losses are incurred and other solutions proved unsuccessful. As a solution, some business consultants recommend keeping tab on operations of competitors in business, monitoring the edge, they have over your own business in terms of what they are doing that you are not doing giving him the market advantage.
However, although competition is literally a rivalry between two or more person for same interests and the general perception of competition creates a sense of negativity thereby eliciting reactions such as enmity, detestation and animosity, it can be constructive in growing businesses. In addition, the rivalry in business involving similar interest in customers or market share can be a helpful tool in businesses development and the economy as a whole.
In essence, business experts say that competition can empower business professionals with the needed support for the achievement of their business goals, implying that the attraction of other competitors into the market can cause the business to thrive better than it ordinarily would in isolation. In other words, your competitors activities is indirectly increasing the chances of your business successes, which is to say that increased competition can be a positive tool in the market where the business is currently operating or in penetrating into a new market. As such, the attitude to competition in business should engender cooperation rather than animosity. This assertion stems from the fact that competition creates awareness for the business, gives incentives for improvement in productivity and increases the capacity for innovation.
Improvement in productivity also lowers production costs resulting to lower prices, which in turn encourage increase in sales, increase in share of markets, and high profits for the business. Innovation on the other hand, does not just involve the product design or concept but encompasses broad areas of initiating the products or services like the manufacturing processes; materials used and business practices in distribution and sales. Innovation is a product of creativity and it boosts the relevance of the product or business in the market since market demand patterns prompts such creativities or innovation.
To illustrate the points here, there are instances where creativities in changing product design resulting in improvement that creates value; improve performance; lower cost; and better quality of the product that does not increase customer’s patronage. Such a case may be because of the markets ignorance, averseness to the culture of innovation within the market and other factors, which frustrates the anticipated positive outcomes of innovation.
The situation however, will be much different in a highly competitive market because such markets are always expectant and receptive to new products and businesses, this attitude in the market is a result of individual competitor’s activities and all players in the sector enjoy these gains.
Also, costs in penetrating into new markets are much less with the presence of competition in the market, because the presence of different active players in the market creates a lasting impression in the minds of current or prospective customers of the business and the product they offer. Such lasting impression invariably leads to better acceptance in the market and larger patronage.
Furthermore, the advantages of increasing competition are visible in current advocations for establishment of business hubs, industrial estates and deregulation of key sectors of the economy. This is because these elements help boost the effectiveness and efficiency of the businesses in the different sectors they operate, engender industrialisation and foster economic growth and development in the country as a whole.
Facts indicate greater successes when a community of businesses seeks a collective benefit than the sum of individual benefits each company would realize by only optimizing its individual performance. Hence, economic, social and environmental benefits thrive when competing businesses cooperate to maximize the impacts they have on their environment.
The ultimate aim of attaining a high feat, in terms of market share and patronage that result in higher profits, growth and sustenance of a business over time, makes the businessperson to continually look for ways to gain and maintain market advantage. This indicate that the desire to be ahead in the market accounts for actions directed at changing mode of operation, changing the line of business, relocating the business or re- branding products to meet current innovation and taste.
In an extreme case, actions to remedy low market share might involve folding up the business when losses are incurred and other solutions proved unsuccessful. As a solution, some business consultants recommend keeping tab on operations of competitors in business, monitoring the edge, they have over your own business in terms of what they are doing that you are not doing giving him the market advantage.
However, although competition is literally a rivalry between two or more person for same interests and the general perception of competition creates a sense of negativity thereby eliciting reactions such as enmity, detestation and animosity, it can be constructive in growing businesses. In addition, the rivalry in business involving similar interest in customers or market share can be a helpful tool in businesses development and the economy as a whole.
In essence, business experts say that competition can empower business professionals with the needed support for the achievement of their business goals, implying that the attraction of other competitors into the market can cause the business to thrive better than it ordinarily would in isolation. In other words, your competitors activities is indirectly increasing the chances of your business successes, which is to say that increased competition can be a positive tool in the market where the business is currently operating or in penetrating into a new market. As such, the attitude to competition in business should engender cooperation rather than animosity. This assertion stems from the fact that competition creates awareness for the business, gives incentives for improvement in productivity and increases the capacity for innovation.
Improvement in productivity also lowers production costs resulting to lower prices, which in turn encourage increase in sales, increase in share of markets, and high profits for the business. Innovation on the other hand, does not just involve the product design or concept but encompasses broad areas of initiating the products or services like the manufacturing processes; materials used and business practices in distribution and sales. Innovation is a product of creativity and it boosts the relevance of the product or business in the market since market demand patterns prompts such creativities or innovation.
To illustrate the points here, there are instances where creativities in changing product design resulting in improvement that creates value; improve performance; lower cost; and better quality of the product that does not increase customer’s patronage. Such a case may be because of the markets ignorance, averseness to the culture of innovation within the market and other factors, which frustrates the anticipated positive outcomes of innovation.
The situation however, will be much different in a highly competitive market because such markets are always expectant and receptive to new products and businesses, this attitude in the market is a result of individual competitor’s activities and all players in the sector enjoy these gains.
Also, costs in penetrating into new markets are much less with the presence of competition in the market, because the presence of different active players in the market creates a lasting impression in the minds of current or prospective customers of the business and the product they offer. Such lasting impression invariably leads to better acceptance in the market and larger patronage.
Furthermore, the advantages of increasing competition are visible in current advocations for establishment of business hubs, industrial estates and deregulation of key sectors of the economy. This is because these elements help boost the effectiveness and efficiency of the businesses in the different sectors they operate, engender industrialisation and foster economic growth and development in the country as a whole.
Facts indicate greater successes when a community of businesses seeks a collective benefit than the sum of individual benefits each company would realize by only optimizing its individual performance. Hence, economic, social and environmental benefits thrive when competing businesses cooperate to maximize the impacts they have on their environment.
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