This post originally appeared on our blog, Globial Talks Business
Today's post comes courtesy of direct marketing expert and entrepreneurship contributor Tim
In 2008, global management consulting company McKinsey & Company conducted and released the results of a study about companies’ responses to competitors’ threats. Based on its poll of managers, the consulting firm revealed that most of the respondents prefer a less active approach. Businesses that know and understand their competition get the advantage.According to management theory, companies that face serious threats from competition or other businesses must extensively analyze and act to retaliate or fight back. Companies can effectively respond to competition through the following measures.
1. Offering a better product
Developing and offering better products and services compared to competition is logically the best and easiest way to effectively respond to intensifying rivalry. The market is almost always responsive to products that are more like improvements of old products.
2. Creating a marketing advantage
As usual, great marketing is key to success. Chances are that your competitors are focused on sales. You can do better by investing and focusing on marketing. Building your brand, researching the market, and creating a buzz will prove to be an effective response to competition.
3. Prioritizing quality
If your rivals are offering cheaper and mass-produced goods, you can focus on quality. Be confident because if you make sure your product is of the highest quality, no matter how aggressive and cheap the competing products are, you goods will always have the advantage. The market has more room for high-quality products instead of cheap ones. Aim for long-term edge.
4. Targeting a niche market
Your product can never possibly and effectively cover everyone. It is a principle in marketing to conquer only a part of the market. Target that niche where you can actually excel in. Remember that by concentrating on that portion of the market, you can get to know your customers more. Take care of your niche market and leave the rest to your competitors.
5. Adapting to new trends
Adapt or die. That can be a good business principle, which can help you overcome and beat the competition. The times are changing. Make sure your business changes for the better. If you stop innovating, your business will certainly lag behind. Trudge along and cease to do the same thing over a long period of time. Nothing is permanent in this world, you know. It is important to keep on reinventing your business to cater to consumers’ ever-changing wants and needs.
6. Improving customer service
Many brands and companies fail because of their failure to provide ideal and reliable customer service. If you can make sure your customers will always have good experiences when dealing with your personnel, you can expect to build customer loyalty and higher patronage. Make your consumers feel important and they will surely translate that importance into higher sales, which in turn can provide you greater revenues and profits.
About the Author
Tim has been blogging about business growth and entrepreneurship for over 4 years. When he is not writing, Tim specialises in promotional merchandise and direct marketing strategies.