Things To Do If the Market Is Too Competitive
What do you do when the market becomes too competitive? So many entrepreneurs are faced with this question every now and then. In today’s extremely competitive world, marketing could prove to be very difficult, and pose a hard nut to crack.
There are some businesses with huge established brands that makes it difficult for small startups to survive. Instead of looking for a low competition business to start, it may be advisable to look into how your venture can survive the stiff competition out there.
What If the Market Is Too Competitive? Today, it is much more difficult to stand out amongst competitors in the industry; especially in an industry that is saturated, and where the competition is so stiff.
This article clearly draws attention to a number of things you can do, as an entrepreneur, when the market becomes too competitive.
Some markets are not going to be less competitive no matter how long you are determined to wait. Instead of shying away from the fact, you should brace yourself for the task ahead. Good news is you can actually beat your competitors to their game by carefully studying some trends in the market.
In this post today, I’ll be sharing with you certain strategies to outshine most of these competitions. I understand that not every investor likes competition. But the basic truth is you should start approaching issues as they are, instead of how you wish they had been.
Let’s have a look at some practical steps you can take if your find yourself in a very competitive market.
Maximize Neglected Marketing Strategies
DON’T MISS: Top Marketing Ideas To Double Your Sales
One of the things to do is to dig out advertising methods that your competition is not making use of. Most businesses copy advertising models. There is a general belief that since they are in the same line of investment what works for Company A will also work for them. While looking for alternate means of promotion to give a unique boost to your sales, try to validate them as some ideas might have been experimented and proven to fail by your other competitors.
ALSO READ: 5 Viral Marketing Ideas That Still Work
Teaming up with other businesses in your market widens your experience and exposure. As long as you are in partnership with a brand you can gain from, taking time to study how they are doing what they do and areas that they have not touched, your investment will surely be a step ahead of others. A good partnership is sometimes the only available mallet to break through a really competitive market.
READ: 3 Secrets Why Many Entrepreneurs in Africa Fail
Prioritize Customers Satisfaction
As the sales roll in, many businesses tends to slack off in their approach when servicing their clients. Outsourcing some of your clients’ needs to more reliable organizations and units is a good way to take the pressure off you. Your competition start diminishing the moment your business begins treating customers better than its competitors.
- Study Your Competition
For you to be able to penetrate the market when the market becomes too competitive, you need to study your competitors and know what exactly they are doing in contrasts and in comparison with what you are doing. Know what they are doing right and improve upon it; know what they are doing wrong and exploit it.
Gather as much information about them by knowing who they are; what products they offer; what sets them apart in the industry (i.e. their unique selling point); and their reputation. Most important is that you should capitalize on their weaknesses.
- Always Keep Up-to-Date with Industry Trends
Without always keeping abreast with the trends in the industry, your business marketing strategies may soon go obsolete and outdated. When you do not cultivate the habit of always keeping abreast with the industry latest changes and trends, you will find out that your competitors will sooner than you think push you to the back seat in the industry.
Always research on the latest information regarding the industry, and make forecasts, say 6 months to a year, into the future. You should always keep abreast with the latest trends by subscribing to industry newsletters, news tickers/ trackers, and several other subscriptions.
- Keep Customers Satisfaction a Top Priority
Always make sure you treat your customers well so that you can establish a long-lasting customer base. It costs much more to outsource for new customers than it costs to maintain the customer base you have established.
Ensure you know your customers well on a one on one basis, and train your employees to always cultivate great customer relationship, and to always deliver great customer services. The reason is because the success of your business largely depends upon the number of return or repeat purchases you are able to make from your esteemed customers.
- Do not Cut-back on Prices
When the market becomes too competitive, the easiest thing to do would be to cut back on price and offer your products and services at reduced costs. You should never do this. This is because no matter how cheap you offer your products, you will still be able to find a business in the industry that will be more than willing to even offer the same products and services at a much lower price; so how then do you stand out in the crowd?
The moment you reduce your prices, you will find out that customers will come in, yet you will still lose as much money. Instead, you should brainstorm on smarter ways you can stand out in the competitive market, like improving service quality.
- Identify and Fill a Void
Sometimes, to be able to stand out in a competitive market, you do not necessarily need to be so innovative and revolutionary. Although being innovative is very good for the market as a whole, but you do not necessarily need to be very innovative to really succeed in business.
All you need do is to take a critical look at your target industry and look out for a void, a niche that had not been explored that much, and take advantage of it. Figure out the best possible way of adapting your business in line with that void.
- Be Unique
For you to really be able to stand out in a competitive market, you have to be unique. You cannot stand out if there is nothing that differentiates you from the rest of the competition. You need to identify what aspects of business will set you apart from the rest of your competitors. This is what is called your “it factor”.
Your focus should be on identifying that thing that will set you apart from the other competitors in the industry, which customers will be able to see as better than what the others have to offer. It could be the quality products that you offer, or maybe it is the special customer services you render. Either way, you must make sure to make it is a distinguishable factor, and you should be known for it.
- Know Your Competitive Advantage
For you to be able to beat the competition in a market that is too competitive, you need to define your competitive advantage. You cannot compete when you have not been able to figure out a plan on how to win in the competition.
Your competitive advantage could be quality customer services, or quality products, or just cheap price; or it could be a combination of quality customer services and either quality products or cheap price.
- Improve on Marketing Strategies and Effective Networking
Improve on your marketing strategies if you have not been putting too much effort into it. Put in effort to promote and advertize your business.
Sometimes to break the strong rock of a competitive market, you need to be in partnership with a stronger and reputable company that you can learn and gain from. Take out time to study how they are doing what they are doing.
- Create, Execute and Track Business Plan and Marketing Plan
This is one of the basics when it comes to making your business stand out from the competition. In actual fact, this is where every entrepreneur should start; creating a business plan that fully caters for the marketing strategies of your business, and how the marketing strategies are going to be fully executed.
It should not stop there, when it comes to beating the competition in the market, you must be able to willingly track the plans you have set out, and modify where necessary from time to time. You must really take this one seriously so that all the efforts you have put in to write and execute your marketing plan will not seem a little wasted.
You will discover that most times competitions appear bigger than they actually are. If you are ready to go the extra mile doing things that your competitor does not even think exists, you are already ahead of the pack.