Sustaining Your Business Amid Rivalry! According to the Harvard Business School, businesses should know their competition to prepare their own strategies. Since competition serves as a hindrance to a business’ prosperity, competition strategies are instrumental in helping companies to gain a competitive advantage. An article by Dr. Richard Oliver in the 2005 issue of “Journal of Business Strategy” explains that business strategies help companies to achieve their organisational goals. Products of better quality, design and price, among other things, will keep the business ahead of competitors. In order to arrive at these qualities, experts say there are many other steps and factors business owners need to consider. Some of them are discussed below. Know your niche Beating your business competition is essential if you are going to survive in the do-or-die Nigerian economy. The first step in beating your business competition is knowing your niche. If you are a small business, you can’t go after everyone, but you can completely dominate the business of a particular niche. Be fantastic The second step in beating your business competition is being absolutely fantastic at what you do. Be better than they are – work longer hours, have better customer service, etc. Nothing destroys competition more than excellence at your business craft. Offer discounts The third step in beating your business competition is offering discounts to your customers. Customers will be very loyal – and give you referrals – for offering them discounts. Do not badmouth The fourth step in beating your business competition is never badmouthing your competitors. Experts say if your competitors badmouth you every chance they get, never badmouth them. Slander is unprofessional and trashy. Avoid it in the business world; avoid it in your personal life as well. Define what people want from you The fifth step in beating your business competition is honing the vision of your business. You need to clearly define what people will and will not expect from you – you can’t be everything to everyone. Customers will appreciate your close-knit vision. Out-market your competitors The sixth step in beating your business competition is out-marketing them. Make your marketing stand out from that of your competition. Carry out research In order for entrepreneurs to keep their business competitive, it is important that they have proper understanding and knowledge of their business, the industry in which they operate, and other industries as well. According to experts, research and further studies are the best way through which entrepreneurs can get good understanding of the industry. They explain that by having a good knowledge about the industry and carrying out researches, business owners will be in a better position to notice changes or trends in the industry and find truly new ideas. They add that by paying attention to trends in other sectors, as well, entrepreneurs may be able to adapt ideas from other businesses to theirs, thereby giving it an edge. This, they stress, is better than imitating competitors. Through researches, you can also find out more about your competitors and their unique selling points, which will aid you in your bid to stay ahead or to stand out. Understand your customers For you to keep your business competitive or to give your products or services an edge over others, it is very important that you understand your customers and their expectations – needs, wants and even challenges. For this to happen, there is the need for more interaction with them. One way in which you can freely relate with your customers is by being actively involved in the communities where they live via participation in local activities or programmes. By interacting with customers frequently, experts say not only will they provide you with feedback on your products; they will also keep you informed of new trends – sometimes giving you ideas on how to improve your products or services. Experts say without such an understanding, new innovations instead of making your product ‘irresistible’ or the preferred choice may end up putting customers off. When you know your customers, you are more likely to get it right in terms of the quality, appearance and cost of your product. Define and keep your goals in view While it is advised that you take note of market trends and adapt your business accordingly so as to stay ahead of the competition, experts say it is important that you keep the vision that you have for your business in focus at all times. That way, they explain, you won’t make the mistake of adopting a trend that is not in line with your goals, which your customers have come to appreciate and prefer over time. By keeping your vision in focus, they say you will be able to adopt trend, technology and ideas, which will go to strengthen it and speed up your chances of achieving your goals; rather than adopting ideas or spending money on technology which in reality add no value to your business. Apart from the likely effect that adopting the wrong strategy or technology may have on your customers, it could also amount to wastage of funds. Experts say when entrepreneurs merge their goals and aspiration to their businesses, they stand a better chance of enjoying what they do and put in their best or doing all it takes to keep the businesses running smoothly. Once that is the case, they explain, the business owner will have less challenges keeping his business ahead of the competition. Look to the future How prepared is your business for the future? Can it withstand the challenges that are ahead? Can it take advantage of the opportunities that time will bring? Experts say not many entrepreneurs can answer these questions. They argue that many have not even thought about them. Such entrepreneurs are unlikely to keep their companies ahead of their competitors. Even if they are ahead now, they are unlikely to maintain that status; because they are just not prepared for the future. To be prepared for the future is to plan ahead. According to experts, such planning is critical to the long-term growth and success of businesses. Adopt ICT From automated accounting and human resource systems to interactive websites, more and more businesses are adopting information and communication technology to the running of their businesses. Without adopting technology to your business, experts say you don’t stand a chance of beating competition. By utilising technology, experts say owners of small enterprises can give their business an edge. For instance, a small business can make its service available across the country via a website. This is in contrast to what was obtainable in the past when a business had to have offices across the country for its services to be accessible to everyone. While bigger companies that have established offices all over are battling to maintain those offices and the many workers that were employed to run them, your business – with just a few workers – is providing a similar service at an affordable and probably faster way, especially if you offer advisory services. Are you taking advantage of the social media – Facebook, Twitter and LinkedIn? Do you have a website? What gadgets are you using at work? Are you taking advantage of the digital revolution? What about mobile devises? Ensure effective financial management Virtually every day, there are calls for the Central Bank of Nigeria to intensify efforts to ensure that banks’ interest rates in the country are reduced. Entrepreneurs have continually lamented the difficulty they face in getting funding to grow their businesses or to diversify their businesses. Experts say it is, therefore, important for companies to be prudent in managing their finances. Doing so will ensure that your company has some form of saving or ‘capital,’ which will enable it to take advantage of opportunities in the industry and easily adapt to changes in the industry. (ADEMOLA ALAWIYE) *And dont be too desperate within the competition that you will overlook the need to know the truth about the people you are dealing with in your business. Always verify the truth behind the claims.
Posted on: Mon, 30 Jun 2014 08:36:06 +0000
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