In every sphere of life, competition prevails for individuals. Even, at the tender age when a student goes to school, the student is being burdened to perform better and score high in academics. A similar approach applies to the business sphere, wherein the companies operate to ace others and earn more revenue than their competitors.
Stop Following Competitors Like Sheep
To allure customers, companies practice various business tactics and, in turn, heat up the competition in the market. In its reaction, the competitors reciprocate in the same manner by adopting a similar business strategy. This “be a sheep” attitude should be dropped by companies and instead, a new, unique approach should be adopted.
Perhaps, competition is growing tougher even in emerging businesses like retailing, travel and tourism, and automatic car wash. In such a scenario, an entrepreneur employs every idea to go ahead of the rivals but it does follies which brings outcome the other way round. The business owners should swot (study the market deeply) and form effective strategies with respect to a particular problem.
Despite various companies selling a single type of product, there is always a difference in every company’s operation. Thus, apart from attaining a unique entity in the business ecosystem, a company also gains strengths as well as flaws.
It is vital for a company to recognize areas where it has an upper hand and what its lows are. After examining this, a company should mull business strategies over and narrow down the best ones.
The run rate, as well as burn rate, of the company, is mainly influenced by the size of the customer base. If the customers are spiking then the run rate (financial results) will be positive and high. While in the opposite scenario where a business keeps losing customers, the burn rate (money loss) will be higher. Thus, it is vital to creating a balance between the run rate and burn rate by keeping one’s customer base wider.
For that, the entrepreneur should develop healthy bonds with the customers. To convert a consumer into loyal customers’ category, a company should approach prospective customers with email marketing, SMS marketing and online advertisements. In these marketing agents, a company can write about discounts, rewards and other offers that it gives out to the customers.
By following what one’s competitor does, one is voluntarily following the competitor like a sheep. A company should not follow this kind of tactic instead it should study its competitor’s model, ascertain areas where the competitor is performing well and then, search for loops in the competitor’s model.
Suppose, if a car wash company is attracting customers by reducing the rates, then its competitor should not adopt the same strategy and lessen its rates too. Instead, the competitor should look for price adjusting policy to entice customers so that neither it has to reduce prices nor offer additional benefits to customers, by incurring short-term losses.
Marketing is invariably an essential tool to promote one’s product and service. To follow a marketing strategy, a company should engage in each and every mode of marketing, from digital marketing to launching campaigns.
By focusing on one type of marketing, it would be difficult to target prospective customers and in turn, get revenue. Thus, it is essential that the company spends rigorously on marketing, searching the pros of every marketing agent.
Smooth and unrugged road don’t easily lead to great heights. Healthy competition is indeed needed to realize one’s potential.