What Is Your Strategy Against Competitors?

Cherry B
Oct 3, 2016
2 min read

In this crowded market place, competitors are abound. With everyone vying for market position and a piece of the pie, what real strategy do you have against your competition?

In this post, we would like to look at the different ways that companies deal with competitions, which some may sound familiar to you.

REMAIN STATUS QUO

Remaining status quo. This group chooses to ignore competition. They prefer continuously hunting for new accounts. Volume or rather, over spills of accounts will make up for any lost business to competitors.

While this does not mean they ignore the competitors, to them market share is number one priority.

Pros : Having major market share is great, but proceed with caution.

Cons : Acquiring new accounts is a good thing, but it is also a lot more costly with hard work. Customer retention and satisfaction will also likely be low in ratings.

TIT FOR TAT

How often have you seen this - Company A branded a promotion this week. The following week, Company B countered with something of their own. From a sales individual, sales person A gives an amount of discount. Sales person B then comes in with a higher discount and even freebies. In both these examples, the cycle goes on and one until one raises a white flag. The final winner is the customer. Both competitors lose.

Pros : The only good thing you get out of this is - customers see you as the discount house. You are "financially more capable". What good is great revenue with little or no profits?

Cons : In the long term, the model is not sustainable as a business. It takes a lot more sales to achieve the same profit expectations.

FBI - FRONTLINE BUSINESS INTELLIGENCE

This group focuses intently on the competition. They spend loads of dollars finding out what their competitors do. Their products, strategies, customers etc... They then counter the actions with their very own reactions, just like the "Tit for Tat" group of companies.

Pros : Knowing the competitors is an absolute great thing. As the saying goes, if you do not have competition, you have got a problem. As Confucius also mentioned, knowing the competitors allow you to win.

Cons : Being too focus on competition all the time, can have reverse effects. It could reserve in lost of own identity.

THE DIFFERENTIATORS

As the name indicates, this group focuses on driving their unique identity and differentiation. While they are constantly aware of their competitors, their main drive is to increase the gap between them and the competition, separating themselves from the rest of the pack.

Pros : You will never know where you are heading to when you keep looking back. So it all makes logical sense to drive differentiation. Customers see you uniquely and often, price is less an objection.

Cons : We could not think of any actually. Can you?

"You will never know where you are heading to when you keep looking back."