TALK ABOUT COMPETITION

 WHAT IS COMPETITION?

    Competition is a contest between individuals, groups, nations, animals, etc. for territory, a niche, or a location of resources. It arises whenever two or more parties strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment.

BUSINESS COMPETITION

    Healthy completion is often a great way for organizations to motivate themselves and their employees to strive for excellence. There are several types of business competition, and each has an important part in increasing customer satisfaction, promoting innovation and revealing marketplace advantages. As a marketing, sales or advertising professional, understanding competition in business may help you improve your efforts and maximize your success.

    “Business competition is the contest between organizations that provide similar products or services or that target the same audience of consumers. Businesses compete to convert and retain customers, increase revenue and gain more market share.”

    A high amount of business competition may be a sign of a healthy, profitable marketplace and often enhances the overall quality of available products and services by encouraging organizations to improve their operations, fulfill the needs of their customers and develop their client relationships.

Types of competition in business:

• Direct competition
• Indirect competition
• Replacement competition

Direct competition : Direct competitors are brands or businesses that sell the same products or services to the same target audience. You can tell if two businesses are in direct competition with each other if:

• They operate within the same industry
• They provide the same or similar products or services
• They target the same audience of consumers
• They satisfy the same customer need
• They use the same channel of distribution
• Indirect competition

Indirect competitors : provide products or services that are not the same but that satisfy the same consumer needs. A great example of indirect competitors would be two different styles of restaurants. You can tell if two businesses are indirect competitors if:

• They operate in the same industry
• They satisfy the same need
• They target the same audience
•  Replacement competition

Replacement competitors : Replacement competitors are brands and businesses that have the ability to completely replace existing organizations by producing new products or services that better satisfy the needs of their target audience. For example, mobile phone manufactures eventually replaced manufacturers of landline phones because they fulfilled the same need in an improved, more convenient way. You can tell if an organization is a replacement competition if it offers an existing product or service in a new, innovative way the more successfully satisfies the needs of consumers.

BENEFITS OF COMPETITION IN BUSINESS

Competition in business often provides opportunities for brands and businesses to improve the performance of their products and services. Additional benefits of business competition may include:

1. Addressing the needs of customers:

Business competition motivates brands and businesses to fulfill their customer's needs more effectively than their competitors. This promotes organizations to develop their understanding of the needs of their target audience and tailor their offerings to fulfill satisfy their needs. The results of brands and businesses that focus on fulfilling customer needs include higher quality products, the increased value of services and enhanced customer satisfaction.

2. Analyzing strengths and weaknesses:

Business competition may encourage organizations to evaluate their strengths and weaknesses and optimize their strategies based on these findings. This may allow brands and businesses to maximize the talents of their teams and departments, make informed decisions about their marketing and sales strategies and tailor their offerings according to their strengths.

3. Increasing demand:

Business competition is an effective way to increase the demand for a product or service. As more companies invest in their marketing and advertising efforts, consumer demand for their products and services may increase as brand awareness continues to grow. This is beneficial to each competitor involved and may result in increased revenue, higher customer acquisition and retention.

4. Encouraging innovation:

In order to gain an advantage in the marketplace, business competition may encourage organizations to innovate their strategies and improve their products or services in creative, revolutionary ways. This is an important contribution to the continued improvement of goods and services, the advancement of technology products and services and adapting to the changing needs of consumers.

5. Revealing competitive advantages:

Brands and businesses often track and analyze their competitors' performances to gain insight into their business strategy. By studying their competitors' tactics, brands and businesses may be able to reveal their own advantages in the market. This may help organizations better understand the aspects of their business that differentiate them from the competition, and using this information, they may develop strategies that contribute to their success.

6. Promoting business development:

Continued business development may be an important factor in long-term success. Business competition often challenges brands and businesses to continually improve their procedures, analyze the success of their efforts and develop new methods of achieving their objectives. This may help organizations seek continued business development and could contribute to their long-term success.

CONCLUSION

Promoting healthy business competition may help you stimulate the growth and development of your organization, increase the health of the market and promote the success of your products and services. You should consider some tips to promote healthy business competition i.e. understand your competition, make positive connections, demonstrate your uniqueness.

Sonali Subudhi  

        - TechNeutron