Overcoming Competition in the Market

How to overcome competition and increase market share

Competition Can Be Healthy

When there are no competitors in a market, there is rarely innovation. Why would there be a need for new or improved products or services when what is there is all there is?

Having some business competition, while good, can be fierce. Some industries move very fast while others move slower. An abundance of competition can make it both harder and more expensive to get new customers. This is especially true today where brand loyalty is harder to create and the internet has made it easier for people to shop around.

Even if your market is fully saturated with lots of competitors, you can still be highly profitable. But you must first start with strategy…

Knowing Your Customer

Humans are relational. Most every salesperson in the world has at least once heard and likely many times said, “they have to know you, like you, and trust you before they will buy from you.” This is nothing more than defining what a good relationship should look like. It’s very hard to build know, like, or trust if there is no relationship.

But what does it mean to “know” your customer?

When you are competing with other businesses for new customers (and retaining old ones), you must first start with knowing who they are. That means you need to be in touch with their fears and frustrations. You must understand your customers’ wants and desires. You need to understand the key factors in their buying decision.

With that, you must be keenly aware of how what you offer takes them from where they are to where they want to be. This is where, often, businesses get it wrong.

For example, if a person has a broken air conditioner in the middle of summer, they don’t want their air conditioner to be fixed. They want to be cool. The repaired air conditioner is simply the tool that gets them what they want. Understanding this difference in mindset will put you ahead of 90% of businesses today.

Knowing Your Competition

Often, one of the leading factors in the buying process is the differentiation between companies. How are you different from your competitors?

Do a bit of research to find out who your competitors are. You may already know some of them, but there are probably more. What products or services are they offering? What are their strengths and weaknesses?

Your goal is not to copy your competitors. Your goal is to find out what they are good at that you can do better. As well, you should find out what they are not doing that your market wants. That’s innovation and differentiation!