Competition exists all around us. We see it in sports, politics, business, and even in schools. Everyone competes for that top spot in the marketplace. Some industries require a competitive quality because in order for them to succeed, one must “win”. And with winning comes a lot of perks, including an increase in income, more endorsements, and even bragging rights. But with business, one must ask if participating in a competition would benefit the business or hurt the business.
Thing 1 VS. Thing 2
I’m sure you’ve seen the commercials where 2 companies are direct competitors and make it no secret by way of attacking the competition. Both companies offer the same exact product and the same exact service, while claiming to offer just a tad bit more than the other. Some companies can become so engrossed in their competitor’s activity that they lose focus of their own competitive advantage and value. Some competition is good, as it encourages innovation and growth. However, some competition can be bad and lead to a company’s demise.
Competitors Can Lead To Partners
When starting a business, it is always good to scope out the services and products that other companies are offering within your industry. These companies have found success in the marketplace, so why not check them out and see how they’re conducting business. By analyzing other companies, this could possibly give you insight on what is missing in the market. Is there a void that needs to be filled? Is that company good at offering a particular service, but not another? It is also possible that a partnership could be formed where you and the other company could leverage each others’ strengths and weaknesses. The opportunities are endless, if you remain open to them.
Work For The Competition
For those who are interested in becoming an entrepreneur, many will recommend that you work for a company that is currently operating in the industry that you want to enter. In other words, apply for a position with your future competitor to not only learn the business, but to also increase and expand your network. There is nothing better than to learn about the business from someone in the business.
There is certainly enough business to go around. Every day there are old businesses closing, and new businesses opening. There will always be a need. If not right now, there will be one in the future. The goal is to not become some consumed by what your competitor is doing to where you lose focus on creating and sustaining your own competitive advantage. Don’t offer a clone, offer differentiating value.