In the business world, competition is inevitable. Every business will inevitably deal with competition from other businesses offering similar or the same products or services.
Business competition can be challenging for an entrepreneur. However, competition can also provide an opportunity to improve the business and become more successful.
In this modern era, business competition is very tight due to the many options available to customers. Therefore, as an entrepreneur, you need to understand how to effectively dealing with business competition so that your business can compete and grow.
Here are some steps you can take to deal with competition in a tight business world:
1. Identify Your Competitors
The first thing to do is identify who your main business competitors are. This is very important to help you understand your competitors’ strengths and weaknesses. In addition, you can also understand what distinguishes your business from competitors.
How to Identify Your Business Competitors
Identifying your main business competitors is an important step in dealing with business competition. To identify business competitors, you can collect various information about competitors in several ways, such as:
1. Research Your Competitor’s Website
Visit your competitor’s website and then see what services or facilities they offer.
It is important to make sure that the products or services offered are the same as those offered by your business. Or, do they have advantages in terms of quality, price, or service?
2. Conduct Online Research
Use search engines like Google, Bing, and others. You can also use online review platforms to research your competitors. This will give you complete information about customer reviews, business reputation, and the popularity level of the business.
3. Ask Customers
Ask customers about their experiences with your competitors. You will get information about what customers are looking for and need through this method. In addition, you will understand the advantages or disadvantages of the competitor’s business from the customer’s perspective.
By identifying or analyzing your main business competitors, you can understand your competitors’ strengths and weaknesses. Not only that, you can also determine the right strategies to compete and grow in business competition.
2. Determine The Value Add of Your Business
The next way to compete with business competitors is to determine the value add to your business.
Value-add is what makes your business different and better than the competition. This can be better service, better product quality, or more competitive prices.
Also look for ways to highlight this value-add to customers, such as advertising the advantages of your product or offering discounts to loyal customers. The bottom line is to make potential customers aware of the advantages of your business.
According to an article on business.com titled “7 Surefire Strategies to Help You Stand Out From the Competition“, there are 7 proven strategies to make your business stand out compared to competitors:
- Unparalleled Customer Service
- Focus on Improving Niche Products/Services
- Create the Best Personal Branding
- Set Different Prices from Competitors
- Create Various Product Options for Customers
- Provide Guarantees or Assurances for Products/Services
- Build an Easy and Fast Shopping System
3. Setting Competitive Prices
Price is one factor that can differentiate your business from competitors. You need to find ways to set a fair price but still be competitive. Therefore, also consider operating costs and the profit you want.
You also need to pay attention to the prices of competitors and adjust your business prices accordingly. It is important to remember not to be too carried away with competitor prices. This means you will forget about the quality of the product or service offered. As a result, you do indeed sell products or services at prices far lower than the market, but the quality you offer is less than satisfactory.
There are several ways you can use to set competitive prices, such as:
- Market Research
- Understand and Choose One of the Several Types of Prices Below:
– Penetration Price (lower than competitors)
– Premium Price (higher than competitors but better quality)
– Dynamic Price (regularly changing prices according to market conditions). - Monitor the Market and Research
You must constantly monitor the market and do research to ensure that the price you offer is still competitive. If not, you may need to change your pricing strategy or adjust the price to stay competitive and become a winner.
4. Developing an Effective Marketing Strategy
Effective marketing is a way to attract customer attention and increase sales conversions. Find ways to effectively market your business, such as using social media or participating in business exhibitions.
Don’t forget to also make sure your business has an informative and easily accessible website. Having profiles on review platforms like Google My Business or Yelp can also be helpful.
An effective marketing strategy can also be a solution in dealing with increasingly competitive business competition.
To develop an effective marketing strategy, first identify your business goals. Do you want to increase brand awareness, increase sales, or increase customer loyalty?
After determining your marketing goals, the next step is to identify your target audience. Who do you want to reach with your marketing strategy?
After identifying your target audience, you then need to determine what will catch their attention. Look for the best ideas to make them interested in buying your products or services.
5. Building Good Relationships With Customers
Building good relationships with customers is another important asset for a business. Find ways to build good relationships with customers, such as by providing good service and finding the best solutions for their needs. You can also develop loyalty programs or hold special events for loyal customers.
For example, oil and gas company Shell has a membership system for customers using their products or services. Shell also gives points to customers when they use their products or services, which can be exchanged for products, services, or discounts.
Building good relationships with customers is an effective way to deal with business competition. Maintaining good relationships with customers will increase customer loyalty and increase sales.
Effective Ways to Deal with Business Competition
Here are some ways to establish good relationships with customers:
- Provide Satisfying Service
- Offer the Best Solution to Meet Their Needs
- Host Special Events for Loyal Customers
- Implement a Loyalty Program
By establishing good relationships with customers, you can increase customer loyalty and boost sales for your business. As a result, your business will be better able to compete in the marketplace.