5 Strategies To Turn Competitors’ Advantages Into Your Strength In Business
Having a good understanding of your competitor greatly reduces the risks involved, time spent in understanding the dynamics of the market, the expenditure or expenses on trying to understand customer behaviour and also the amount of resources committed in conducting research on the available competition within the industry you are taking part in.
For any business concern, whenever there is stiff competition, there is a lesser likelihood for success, especially among new businesses or less established ones. Because the strong competitors typically have more resources at their disposal, it becomes almost impossible for a small business to survive within the same industry. However, in order to survive, there are strategies that can be adopted.
One is to align your business enterprise to draw strength from the larger competition, instead of competing with it. Another is to look for less competitive segments of the business where the chances of success are greater and more stable. This article focuses on how to use your competitor’s strength against them, leading to a situation where your business benefits immensely.
Who Are Your Competitors?
Your competitors are usually other business that offer similar services or produce products that can be interchanged or substituted with yours. This is especially true in the eyes of the consumer. The consumer choices determine to a large extent who your competitor will be.
Ways of Using Your Competitors Strength Against Them
There are several ways of benefitting from your competitors strengths. These include the following;
Forming Alliances with Other Disadvantaged Businesses
This is a strategy that has proven to be quite effective. Drawing strength through the formation of a common front by working as a unit increases the likelihood of success. Because your competitor is known to possess a vast amount of resources at their disposal, it is only wise to cooperate and streamline the activities of these disadvantaged businesses to enable them easily raise the much needed resources to compete favourably in the industry.
Checking the Models of Strengths and Weaknesses of the Competitor
Because a strong competitor is believed to have put in place strong strategies and innovations that has resulted in its growth, such strategies used by the competitor can be emulated through a system of replication and adoption. However, these strategies are not fool proof, as there are areas of weakness or areas that need improvement.
In such circumstances, it is only wise that you take advantage of this weakness through a fine-tuning process to ensure that such weaknesses are corrected. Doing this, your business stands a better chance of developing the required muscle to face its competition.
The Importance of Location; Pick Out the Positive Aspect of Your Location and Promote It
Location is very important to any business venture. The big competitors usually have the financial muscle/resources to select the best locations for their businesses. However, there is still hope for the small business. Check out for the positive aspects of your business location and promote it. Because the client is makes the final judgement, let them see why it is more advantageous to come over/visit your business location. This is a subtle way using your competitor’s strength against them.
The big competitors usually have the premium spaces in areas with high traffic, especially for businesses that depend on high traffic to thrive. You can out-manoeuvre your competition by offering attractive discounts or cheaper services to attract the consumer/customer.
Having a Strong Online Visibility
This vital area of advertisement and publicity has been neglected especially by small businesses. Without an online presence, it is almost impossible to compete favourably with more established competition that all have interesting and engaging websites. If the resource to build one is the problem, never hesitate to take advantage of micro sites that offer online presence at highly reduced rates.
Take advantage of employees, relatives or associates with knowledge on website design. Using this option is likely to yield many benefits because you can get quality work done, while paying little for nothing. An online presence is very important. Also ensure that the website has modified pages for browsing with mobile phones, and has easy to use interface.
Having an Effective Customer Care Unit
Because of how important customers are to any business venture, they should never be taken for granted. Most competitors understand this and have concentrated their services to revolve round the customer. To use this strength against your competitor, study your competitor’s customer care services, and look for ways of improving these services.
A client who is treated well is most likely to tell his/her friends about the quality of services enjoyed, and they in turn, together with the client will always want to return to enjoy the treatment.
Creating the right avenue for client loyalty is among the most important strategies of using your competitor’s strength against them.
This is a sure way of using your competitor’s strength against them. There are cheap, yet effective ways of carrying out publicity that ensures that your business gets maximum exposure even when operating on a tight budget. Using social media platforms to showcase your services is an effective way of reaching your target market, which is rewarding at the end.
With special focus on the ways of using your competitors’ strengths against them, the strategies given, if well implemented are certain to offer solutions on ways of effectively competing with your competition.
If you sit down to analyze well, you will find out that most of the businesses competing against yours have more finances, more human resources, more marketing strategies and more ‘everything’ than you do.
So you ask yourself, how do I beat them? Simple! Turn their biggest advantages into your strength. The first thing to do is to figure out what their biggest strength is.
Here are some practical strategies to use your giant competitors’ strength against them:
==> Add Value: Pick a basic product and give it a special appeal. You can advertise it as a status product or make it special by adding more value to it.
==> Commonize: If a product has always been associated with class, you can downgrade on it by reducing its concept thereby making it available for the common people.
==> Consolidate: Look for products or services that go together but people pay for each one separately. Turn them into one and offer them in a bundle. Convenience will make customers patronize you more.
==> Dissociate: This is the opposite of the third point. Get services or products that people buy in bundles and break them down into smaller units. You will discover that most people don’t need all the components. They will come to you because it is cheaper to just get the particular product they need from you instead of paying for whole bundle.
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==> Relocate: Many giant businesses are well grounded in certain areas. Why compete with them in that region? You have a big advantage if you relocate and sell their version of product or service in areas where they are not.
If you have beaten your competitors with some strategies, do share with us.