Hard as it may be to acknowledge, competition is good for business. Interestingly, it provides that extra nudge that pushes us beyond the realm of great into the realm of exceptional. Sadly, many do not understand the benefits of competition and consequently, never become the best at what they do. In this post, we review the subject of competition and uncover several reasons why competition is good for business. We hope this post gives you a new perspective towards your competitors and how they can help your business grow.
Contrary to popular belief, competition is not unhealthy, and rivalry can be a good thing, especially in business. By this, we mean that the process of competing helps one become better at what one does. Best of all, this happens regardless of whether you beat your competition. A great example of this was the legendary sports rivalry between Michael Jordan and Magic Johnson in NBA Basketball. It is said that their rivalry as sportsmen was particularly useful in helping them achieve amazing sports feats.
Before we proceed to the benefits of competition, here are some related posts we believe you’ll find useful:
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With that said, let’s look at the benefits of competition in the next section.
Four benefits of Competition
As stated earlier, competition is good for business. As a matter of fact, competition is an excellent tool for encouraging business growth. Its effects on a business are however determined by your perspective. So, in this section, we’ve listed some benefits of competition:
- Competition provides businesses with a goal to aim for. For example, as in the case of Michael Jordan and Magic Johnson, to be a better Basketball player;
- Competition connects one with others with similar interests. This becomes useful because one can learn from them and become better;
- Another benefit of competition is that it is a true test of the skills you claim to possess;
- Regardless of whether you beat your rivals right away, competition helps uncover weaknesses and mistakes. Consequently, in one’s bid to beat competitors, it makes you better than you were to begin.
Additionally, competition helps unveil areas of shortcomings in business. For example, if a company in the same business provides more services, those are areas you can expand into.
In the next section, we discuss seven reasons why competition is good for business.
Seven reasons Competition is good for Business
One of the theories we would like to pass across in this post is the fact that competition is good. However, it is only good if you have the right perspective and approach it with the right steps. Here are seven reasons competition is good for business:
- It makes Customer Service better: One of the benefits of competition is that it forces businesses to pay attention to their customers. Businesses that realize that there are other viable alternatives to their products tend to stand out through customer service. This is because the eventual difference between relatively similar products depends on how the customer feels about them. For example, which do you prefer, Coke or Pepsi? Interestingly, your answer probably has more to do with how either company makes you feel than their products.
- Competition identifies your Strengths and Weaknesses: Business analysis is very important. However, business analysis in comparison to other companies helps reveal areas of strength and areas that need improvement. By simply comparing your business to that of a competitor, you can quickly identify areas of improvement that can bring in more customers.
- Competition paves the way for Creative Thinking: In line with identifying strengths and weaknesses, competition paves the way for creative thinking. For example, by comparison, you could find and capitalize on areas of weakness of your competition. This could be particularly useful if they are things their customers complain about. So, competition helps generate new ideas and innovation, both of which are necessary for business growth.
- It helps identify Potential Threats: As we’ve seen, strategic thinking is needed to take advantage of competition. One of the reasons why competition is good for business is because it reveals weaknesses and threats. On the other hand, established businesses can compare themselves to upcoming companies and fix their problems. Instead of losing customers to new and emerging companies, they can innovate and adapt to the changing needs of their customers.
- It helps Businesses work Smarter: In a bid to keep their competitive advantage, businesses must find ways to cut cost, work smarter and become efficient. Competition forces businesses to become innovative and ultimately cut their product and service costs.
- Competition creates Room for Learning: Having competition helps one to learn. To beat your competition, businesses must invest in research and development programs that open the door for new opportunities. In today’s world, all international companies have research and development departments focused on creating new opportunities for the future.
- Competition promotes Development: Every company needs to invest in overall development. For example, let’s take brand development. Young companies need to market their brands aggressively. The need to promote one’s brand beyond others can be a springboard for marketing and advert ideas. If you think back for a minute, you’ll realize that some of your best memories of companies are from their creative adverts.
As the saying goes, necessity is the mother of invention. Sometimes, the sparks of creativity do not fly unless they are ignited by competition. This is why competition is good for business.
In your experience, have you found competition useful? Like Michael Jordan and Magic Johnson, what rivalries in school or business have pushed you to become better? Are you currently facing competition in your business? What is your perspective towards it? How do you intend to use this competition to become better? Feel free to leave us your thoughts and comments. As always, we would love to hear from you.
Today’s Funny Quote
As is our custom, we end this post with a funny quote. Today’s funny quote is by Charles M. Schulz, the American Cartoonist;
All you need is love. But a little chocolate now and then doesn’t hurt.
What are your thoughts on competition? Do you think the competition between Michael Jordan and Magic Jordan helped them become even better players? Leave us a thoughts and comments.
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Have a great week ahead and we will see you again later this week with more inspiring posts.
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