Many individuals view competition as a threat to their professional careers. However, competitiveness is healthy among enterprises and their employees as it stimulates growth, innovation and intelligence. By embracing competition as a necessary part of progress, companies are able to do the following:
1. Better understand consumer wants
Consumer behavior is the best indicator for how well a business is doing. Without competitors, how can an enterprise know if it’s actually fulfilling customer needs? If there’s only one grocery store in town, everyone visits it. When there are two or more, grocers learn about what residents truly need based on where they shop and what they spend.
Ben Yoskowitz, an investor and startup founder, told Inc. Magazine that for every great idea, there are probably 10,000 people working on developing it at any given time. If a particular market yields zero interest or investments, it means it’s probably not very lucrative and or worth the time and energy it would take to build a business there. Competition can tell business owners a lot about market potential and how profitable a particular sector can be.
When a corporation has to compete against other businesses for customers, it is forced to consider innovative solutions to common problems. Soloville, a resource for entrepreneurs, stated that if an enterprise is the only option available to consumers, they have no choice but to work with it. Pushing creativity to new heights isn’t necessary, so it doesn’t happen. If two or more businesses compete for the same consumers, suddenly there is a demand for creative thinking and improvement.
Most successful people recognize failure as a huge stepping stone on the path to victory. Resilience is defined by Psychology Today as one’s ability to bounce back to a healthy emotional and social state of being after a negative or painful event. This type of behavior prepares people for the next challenge or opportunity. It’s a hugely important quality in executives. Competition can be frustrating; being able to use problem-solving skills to bounce back will benefit business owners in almost any difficult situation.
Competition among enterprises encourages businesses to continually improve their goods and services. Again, the customer is the focal point. Satisfaction is difficult to measure without comparison and analysis. Corporations will work hard to out do their competition, producing high-quality items as a result.
When similar enterprises begin to emerge from within the same industry, it’s a strong indicator that the sector is in high demand. Competitors are good for businesses in that they push each other to not only promote the industry but produce goods and services that keep consumers interested.
One of the best ways to retain top talent is through professional development opportunities. Helping employees realize their true potential and grow their skills makes them feel like a valued part of the corporation. It’s when workers feel complacent and bored that they decide to leave an organization for one that will better use and develop their talents. Competition – both internal and external – helps motivate employees to challenge themselves and improve their output.
Observing competitors, even from a distance, can tell an executive a lot about strategies that work, and those that fail. Taking note of the ways in which a rival acts, approaches contracts and deals with customers can shed light on tactics that should and should not be implemented in certain situations.
Working with competitors may seem counter-intuitive at first, but it can prove to be an effective strategy for building up an industry, making breakthroughs in advancements or partnering on a new venture.
A business can’t know for certain how well its innovative ideas are doing if no one else is working on solving the same problem. When the market is saturated with competitors and a bold new approach succeeds, it’s validation that the hard work and creativity put forth has paid off.
Executives and corporations should embrace competition as a way to improve skills, boost sales and better serve the customer. Business coaches work with leaders to help them clearly see their competition as a way to improve business.