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Several businesses see competition as the enemy, however, competition, if viewed as an opportunity, not as a threat, helps business owners propel towards a positive direction. Many business owners complain about it, others learn from it, and many run away from it. Successful entrepreneurs are known to meet challenges and thrive under competitive pressures because these competitive pressures open your eyes to areas where you are making mistakes.
How Competition Is Essential For Business Growth
- Competition improves businesses: When your target market is predominantly occupied by competitors, your business could stand out above the crowd by focusing on what makes your company special. Your competitive advantage, superior customer service, or high-quality products should be evident to customers. Embracing competition will help you think from a predator perspective and do anything to ensure the success and growth of your business.
- Competition makes your business real: Some businesses begin as a hobby and may wobble on the edge for years before becoming “a real business”. These informal structures and businesses struggle in a competitive marketplace, nevertheless, competition makes it real because Competition demands that businesses operate in the formal economy for survival and growth.
- Competition identifies the company’s strengths and weaknesses: Competition helps businesses to identify their strengths and weaknesses, however, it provides opportunities for growth in their model.
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- Customer Loyalty: Competition allows businesses to create a community of loyal customers, improve products and adapt to changing market trends. It is an engine of growth for economic development. Having competition does not guarantee more customers, but you will have quality customers who would be loyal to your business. This, inadvertently, is one of the huge advantages of competition in business. If your company is truly unique and offers value to customers, you will get some loyal customers.
- Inspiration: Competition inspires team spirit among employees at a company. Many teams in a business organization bond through having a common goal, which could be exceeding the competitors in sales, new customers, or market share. When the business competitors come up with a new product, marketing technique, or way to run their business, it keeps your company on its toes and moving towards innovation.
- Competition inspires growth, progress, and creativity: When things get competitive, you might take a bigger risk in the hopes of a big reward. You can’t just stay the same and hope to keep your customers as times change and new names enter your industry.
- Learning: A business can learn how to effectively appeal to customers by observing another successful business in the industry. Whether your competition is successful or not, you can learn from their effective decisions and their mistakes. This would serve as a guide to the kind of decisions you will be making for the growth of your business.
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