Most people decide not to go through with a business idea because they are too scared of the competition.
You might think that others have already established themselves on the market and there’s just no space for your startup to get a piece of the market share.
However, there are just too many examples of large brands that crumbled down due to poor competition handling. In this article, we're going to see some of the best ways to deal with your business competitors and use their experience to your benefit.
Keep your friends close…
Nokia was one of the most successful mobile device manufacturers in the world, breaking sales records with each new model they launch on the market. Many of us thought that the Finnish company was beyond any competition. However, as time went by, Nokia executives failed to notice the rise of Android devices and how these mobile platforms started taking over the market.
In time, Nokia paid the price for not keeping an eye on what the competition was doing and eventually the largest mobile developer was flushed away.
Use competition to set your business apart
Examine your main competitors’ business profile and what consumers say about them to create your unique selling point. If you learn what makes others stand out from the crowd you’ll have a chance to build your brand identity that differs from the rest of the market.
When multiple brands offer the same type of products and services, customers make their choices based on their personal preferences. Some go for the design, others cherish user experience, and some only care about the price range.
Apple managed to build a brand based on marketed elitism. They made their products look expensive and they’ve placed a suitable price tag, which seems to have a positive influence on the consumers as people spend hundreds of dollars on Apple products while they could pay the same price for the same quality of products developed by other brands.
The rats that leave the ship
The lack of competition can be a strong signal that something is wrong with a particular niche. If you’re the only business in your industry, then you should examine the past and see what drove others away from the idea that you’re putting in motion.
Also, if you notice that people are massively switching industries, try to find a reason why this is happening as your competitors might know something you're not aware of yet. By the time you get the signal to run, it might already be too late.
Don’t be afraid of a large competition no matter how much experience or marketing resources you have. Try to develop a positive relationship with your peers, learn from their experience, share ideas and try to find a common ground to build long-lasting partnerships. Don’t wish for non-existing competition, because that’s one of the first signals that there’s something off, except if you have a revolutionary product or service that nobody has thought of before, then go for it.