Sorting out the Threat of Competition

LIVERPOOL, U.K. - Aug. 4, 2024 - PRLog -- It would be so much nicer if our customers didn't have a choice of other suppliers.

But would it?  There are reasons to think otherwise.  There may little competition in your market because it is tiny – a shrinking niche or made obsolescent by new technology. Potential competitors may have researched your sector, perhaps even dabbled in it, only to find it isn't worth the effort.

Directing all your marketing resources to inform the world about what you do is a much bigger effort than being part of the general noise created by a collection of suppliers.  A sale can sometimes be the result of an enquiry which was originally directed at one of your competitors.

A competitor can have lots of great ideas which you could borrow to make your own business model more profitable.

The Second Mover Advantage

The second mover advantage is the benefit a business derives from following along behind the early entrant.  The first one in has much bigger risks – what does the customer want, how much would they be willing to pay, how will their attention be captured?  Far easier to examine existing footprints than to step into a murky quagmire.

You will be looking for someone to buy your business one day.  A business without competition is not an attractive proposition and, indeed, trade buyers in your sector will often be your best prospect for a purchaser.

A unique invention or idea is not essential for a successful business.  We can't all be visionaries; most great companies are based on doing things which already work but do them better.

For Example, Soviet Russia

Battling the competition can be frustrating and it's tempting sometimes to wish it away.  Yet, competition supports both the individual business and society at large, with better products and services, more efficient markets and more prosperous economies.  In Soviet Russia there was only one supplier, the state, and no competition.  The unhappy outcome was stagnation, poverty and devastating famine.

If you would like to learn about positioning your business for growth and success, regardless of the competition, contact me for a free Business Consultation at - https://briankelly.co.uk/contact-us/