dealing with competition

How to Deal With Competition in Today’s Hyper-Competitive Economy

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Competitors are everywhere

It’s getting harder to be unique in today’s economy.

Competitors can use the internet to learn what you do and how to do it faster than ever before.

In many fields, geographic location does not protect you from foreign competitors like it used to. Anyone can communicate with your potential clients, no matter their physical location.

Another problem is that it is easier than ever today to start a business. The internet has leveled the playing field, and new players can grab market share just as well as the established companies. Your field may be flooded with new competitors who don’t need to invest much in order to show an impressive image to potential clients.

But this changing economy can also give you advantages that never existed before. The only problem is that you need to learn how to use them in order to take advantage.

Everyone talks about good service and low prices

When many business owners face the problem of growing competition, one of their first reactions is to emphasize service and price. The reasons for this reaction are understandable. It’s easy to please clients with good service and lower prices.

The problem is that it doesn’t solve the problem that you have with your growing competition.

Your competitors may have a better cost structure than yours and can lower their prices at least as much as you can. Lowering prices is counter productive. It deprives you of the excess cash that you need in order to build a good company.

And what about providing really good service? That is great, but you should do it anyway. And not as a response to competition. Your clients would not have considered working with you unless they believed that you are providing good service. Good service is a must, but it won’t position you above your competitors.

 

So what should you do? How should you compete?

Position yourself in a smaller niche and solve their problem

A sure way to win is to do a better job than anyone else, for a small group of potential clients, and to let them know about this.

You can not do this when you are just starting out.  It takes time and experience to know your potential clients, your competitors and to find niches that are under-served. But after you’ve gained some experience in your field, you will start finding these undervalued client niches and their unsolved problems.

Here is how to find problems that only you will solve for your market niche. You could ask yourself:

  • What do clients complain about?
  • What services are available in other markets, but are not available for my niche?
  • What do my clients care about? What do they value, that is not properly addressed by other companies in the market?

Start writing down lists with answers to the above questions. You will soon be on your way to finding your unique position in the market.

Make your special position in that niche known through every communication channel

Once you’ve found your unique value proposition, you need to communicate it through every possible channel. Combine your newly found position in your social media, videos and blog posts and show every reader what is unique about your service.

Don’t try to look “standard.” Show how you are different

Many business owners are apprehensive about being seen as different from other companies in their industry. This is unfortunate, as it keeps them from standing out in their field.

Overcome the natural tendency to look similar to everyone else and use all your marketing channels to show what you do differently. Whenever appropriate, focus on what makes you unique and show how it can help the specific niche that you want to serve.

Show that you care

Not enough companies show that they care.

By spending time researching your niche, and sharing what you’ve learned, you will show them that you care about them. This is the key to differentiate yourself from your competitors.

People in your target niche will feel that you can be trusted. You will start building the reputation of a trusted advisor. This will give you an advantage that most companies don’t have.

Conclusion

  • It is easier than ever to start a business today. Your field is likely to be flooded with competitors if it isn’t already.
  • Instead of being threatened by the recent trends, you can use modern technology to your advantage.
  • The only way to compete successfully is to be different and to serve your target niche in ways that no one else can.

 

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