For a small business, the competition does not have to be a death knell. In fact, it is one of the major causes why a small business survives in the first place. ... A free market that is competitive benefits consumers- and, society and preserves personal freedoms. If there is only one seller in the market, it may charge higher prices without fearing a loss of sales to a competitor. Mike Michalowicz. Innovation and productivity in business results in overall economic growth: regionally, nationally and internationally. You could charge what you want without having to worry about the quality or choice you provide as you would be the only option available. Thus innovative thinking does not become a necessity which makes you inactive in thinking. Not necessarily, and I would like to argue that creating value for your competitors can be of benefit to your business and your other associated stakeholders. Competitive analysis should be viewed as an ongoing process whereby your company continues to understand the strengths, weaknesses, opportunities and threats in relation to your competition. (EdD Candidate - University of Cambridge). Products & Services The features and quality of products and services. As individual performances increase, so do those of the … As you can see in the above illustration, consumers receive various benefits from competition, for example, between cell phone carriers in terms of quality improvement, such as light in weight and smaller in size, performance improvement in electronic mail and cameras and service improvement, and price … Boosts innovation:Competition keeps the business on the toes and makes it imperative for it to innovate and improve. This … In a competitive market prices will be kept low, choice will be high and quality will be improved. I AM HUMAN. You never wish to go down and you become a real hard working at the same time smart individual though it might be to stand out from the competition. Quality of service is a key to customer satisfaction. This is due to the endless need of … You must identify your key stakeholders and aim to create value for each of them in a simultaneous and mutually-beneficial way. For example, if you run a business in a highly competitive, innovative, productive business sector in the UK it will be attractive for customers, staff, investors and communities not only in the UK but also globally. Benefits of Knowing Your Competitors’ Target Audience It’s important to know your own target audience so that you can stay attuned to their needs and adjust your products and services accordingly. This will lead to more customer satisfaction which of course benefits you in long term. Innovation is crucial to the progress of any business. When you consider the secondary benefits of a competitive market and the associated economic growth, supporting a non-competitive market significantly limits your business’ potential for growth. People would want to work for, invest in, buy from and support your business all over the world. Suppose, yours is the only business in a particular industry and of course you have complete control of the market. The pursuit of innovation and productivity often results in the collaboration of ideas and work with other stakeholders. Working efficiently will allow a business to keep prices low and maximise their available resources. In short, you get better ideas that you can make use of. You need to drive innovation and productivity in your sector in order to become world class at what you do. This is a fairly straight forward point to make but it is important that I make this clear before moving on. It brings about new ideas and sees them getting effectively tested in a relatively short amount of time. If things were going well for any business, it probably would take the businesses longer to brainstorm and implement new ideas. Author, Profit First. Competition is one of the fundamental ingredients for economic growth. Business competition is a contest or rivalry between firms to win revenue. If you create value for your competitors it will make your business sector more competitive overall. The more the competition, the more the awareness of the product. 28 June, 2014 by Jonathan Sandling Leave a Comment. Following these 10 strategies to handle competition in your business will help you develop a better idea of what your customer needs. Better quality: Competition also encourages businesses to improve the quality of goods and services they sell – to attract more customers and expand market share. 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