For many, this can be an awkward statement but it’s true.
Let me explain:
– If you have competition, it means you are in a line of business that has costumers, and this’ good news as your marketing efforts to enter the market don’t need to be as harder as if you have no competition at all.
– Also, it means you can look at them to understand where you fit, simplifying your offer to the market to some aspect not covered by the competition, taking advantage of it, at the same time.
– You can even serve the market exactly as your competition does but to a different segment or client profile. Again, taking advantage of it.
– Another advantage, if you plan it well, is the technology factor and/or economy of scale you can put in place, to outperform and outprice an older competitor.
– Having competition can be a tough issue since as soon as you become visible, they will reply with all the ammunition they can get their hands on, just to get rid of you.
– At the same time, if your costumers don’t see the benefits you are offering against the competition – or even if they see it – they can (and will) bargain with you as if you are a commodity. At the end of the day, this will happen to all the players in the marketplace, where only the strongest will survive.
– The above will also happen to your suppliers, but this time the other way around, where they will prefer to sell to the higher bidder;
– Its also normal, in such markets, that many other players want to jump in, to get a piece of it too, as we can see now in many lines of business, where differentiation is increasingly difficult.
The bottom line is:
Having competition can be good news, but remember this can also be a poker game, here who knows how to bluff will win the bet against a better hand.
And like playing poker, you should know when to stay and when to leave, or when to have a different approach.
Playing the competition game it’s not an easy task, but it can be very rewarding with the right tools and the right approach because, after all, what’s life without a challenge?