7 Strategies To Deal With Competition In Business

Competition may sound like an overbearing challenge for small businesses, but it is also a necessity which keeps you on your toes. It is a prerequi...

  • 7 Strategies To Deal With Competition In Business
    Daniel Hall Image Daniel Hall

    7 Strategies To Deal With Competition In Business

    • Thursday 27th of February 2020
    • Strategy

    Competition may sound like an overbearing challenge for small businesses, but it is also a necessity which keeps you on your toes. It is a prerequisite for maintaining a balance between the aggressive market forces and keeping a check on the monopolistic policies.

    However, small businesses may struggle to survive when they are competing with the big sharks that exist in the waters. It can become gruelling to carve a niche in a saturated market or where many similar products are being marketed by long-standing businesses.

    This is the reason why entrepreneurs need smart strategies to deal with prime contenders and make their presence felt in the market. If you are planning to purchase a business for sale in New Zealand, then make sure that you are aware of the techniques mentioned below which will help you to outsmart the competition. Here is what you need to know.

    1. Evaluate The Competition

    When you are trying to outsmart other players in the market, you need to have a thorough understanding of who they are, what they are offering, and how much market share is under their control. It will entail conducting a SWOT analysis of the competitors and analysing the behaviour of the target audience towards their products.

    It will require planning focus group discussions of the customers and identifying their needs and the level of satisfaction provided by the competitors. All the data acquired from the market research will assist you in setting a marketing strategy that appeals to these buyers. It will help you to create objectives which will be based on gaining an advantage in specific areas where the competitors lack.

    2. Create A Point of Differentiation

    The focus of the business owner should be on marketing the individuality of the brand and its products rather than getting lost in the clutter. The branding needs to create a unique identity of the business that stays etched in the minds of the consumers. Take advantage of the weak points of the competitors and capitalise on them.

    The entrepreneur must be able to convince the buyers that his products and services are better suited to fulfil their requirements and offer value for money. Outstanding customer service plays a significant part in this regard which can help in building trust and loyalty. The aim should be to solve the problems of the customers and position the brand as a worthwhile proposition.

    3. Don’t Imitate Your Rivals

    If you become a copy of the existing products, then the consumers will not pay any attention to you. The market is already flooded with me-too goods which are completely similar to the popular brands. However, this strategy doesn’t pay back in the long run. Your product must have its own unique features and marketing plan to attract consumers.

    The entrepreneur can get inspired by the marketing work of the competition and move a step further with a specialised proposal. The unique selling proposition will act as your competitive edge and aid in standing out. The message being sent through all the channels must reinforce the branding and distance the product from its competitors.

    4. Stay Away From Price Changes

    Sometimes the entry of a new business which is eating into your market share can make you take the extreme step of lowering the prices of your products. However, this is not the right way to deal with them. The consumers will get sceptical about the decreased prices and correlate it with low quality.

    It is a common perception among buyers that cheaper goods do not have the required standard. Thus you must not go this way. Also, your expenses may exceed your income if you lower the selling price, and it may become impossible to sustain the business in such a scenario. Let your product stand out for its qualities and the consumer will be happy to pay the price for it.

    5. Diversify When You Are Ready

    Another significant way of improving sales and expanding your reach is to diversify and provide your consumers with a variety of products. However, you should take this step only when you are financially capable of increasing your product line. Don’t do it for the sake of grabbing more customers.

    Targeting new markets with the help of a well-planned portfolio expansion strategy can help you achieve handsome payoffs without losing control over the existing markets. For example, if you were offering insurance plans for young professionals until now, you can think about including middle-aged couples for retirement plans.

    For this, you will need more human resources to keep everyone satisfied with the new product development that caters to a wider audience and amplifies profits.

    6. Keep Innovating To Stay Ahead

    The key to capturing a market is to keep pushing your limits as an entrepreneur. Become an innovator and adopt the latest technology and methods to bring out the best products in the market that have not even been imagined by the competition. For example, the biggest tech giants, Apple and Amazon keep astounding the audience with better products every year and thus remain on the top.

    If you stay put, then you will be run over by the new entrants. So hire the best talent in the industry and appreciate the hard work of your employees to make them feel motivated and energised. A satisfied workforce enhances productivity and is the brain behind creative processes and groundbreaking methods that can make you a leading name in your domain.

    7. Partner With Other Businesses

    Competition doesn’t mean striking each other off from the buying lists of consumers. It does not have to get dirty and cut-throat. You can network with other business owners to get advice and suggestions on important decisions and work cohesively. You can even enter into a collaborative relationship with another brand to market your products, and in turn, offer them the same support.

    A symbiotic partnership can help in gaining more customers. For example, if you are selling coffee, you can partner with a cookie shop and grab the attention of each other’s customer base through in-shop branding or providing discount coupons of the partnered brand.

    Conclusion

    Tackling competition is not like waging war. You need to focus on building a business and product range that is centred on the customer and delivers the desired quality and experience. So if you are looking for business opportunities in New Zealand, then make sure you utilise these tips to take the lead.

  • Author Info Daniel Hall

    Daniel is a business strategist with an experience of over 25 years in business acquisitions and investment portfolio management. He has been working with small and medium-sized enterprises as well as entrepreneurs, helping them to achieve their business buying and selling goals. His wisdom and vast industry knowledge have transformed the careers of a variety of individuals. Business2Sell is excited to welcome Daniel onboard as a guest author for our blog.