The Olympic Games are in full swing, and they've got us thinking about competition.
Although it doesn't always feel like it, competition is actually good for business. Just like the kid who always beat you at school, a bit of healthy competition actually drives you to work harder and do better.
And just like school, it pays to keep an eye on what they are up to - keep your friends close and your enemies closer. Know who your competitors are, what they do well and what they do poorly will help your business grow and thrive.
Here's five reasons why a bit of healthy competition is good for your business:
Customer service will come to the fore
The hotter the competition, the harder you'll have to work to keep your customers happy. A small loyal customer base can be more valuable than a large unreliable customer base.
Competition drives innovation
It takes innovation to win new customers. You won't get ahead by doing the same thing as all your competitors. You'll need to think outside the box to set your business apart from your competitors.
It's no time to rest
With competition snapping at your heels, you can't afford to be complacent. You'll need to think of new ways to be faster, cheaper and smarter, to stay ahead of the game.
Collaborate to be great
Competitors are not your enemies; in fact, they can be your allies. It takes money to develop new products and penetrate new markets, and competitive collaboration can fill that gap. Whether it's a strategic alliance, a joint venture, an outsourcing agreement, product licensing or cooperative research, both parties can benefit from sharing ideas and/or resources.
Learn and grow
Don't dismiss your competitors too easily - you can learn a lot from them even if you're the one out in front. Scrutinise what they are do well and what don't do well. You'll learn more about the market, your customers and your own business.
If you were alone on an island, beyond survival, what would drive you to grow, change or evolve? No business can survive doing the same thing in the same way forever – so be grateful for your competitors, they will propel you from good to great.
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