WHY Is Competition Important In Business
Competitors Are Good Teachers
WHY, is a question that if keenly and informatively addressed gives emphasis on the purpose or reason for the existence of a business. Competition is the rivalry between businesses to increase sales and acquire more customers by regularly adjusting to market needs and demands. The more the consumers, the higher the market share; the more the sales the higher the chances of making more profit. It is, therefore, of great importance to stay ahead of your competitors.
How does the competition really help businesses to grow?
Brings About Innovation
Competition makes people innovative. Innovation is crucial to the progress of any business. It brings about new ideas and sees them getting effectively tested in a relatively short amount of time. If things were going well for any business, it probably would take the businesses longer to brainstorm and implement new ideas. Competition reduces the length at which the ideas are generated and put to use. This is due to the endless need of staying ahead of others which in turn forces people to act fast.
Engineers Optimum Decision Making
With challenges so high, most businesses are left without a choice other than to make optimum decisions. This is essential for the business to thrive in the market. It involves analyzing the competitors, market needs, trends etc and using the generated reports to make optimal decisions that work for both the business and service/product consumers.
Leads to Proper Utilization of Available Resources
To achieve a reliable financial management, one must design a strategy that ensures proper utilization of available resources. We all know that resources are scarce and, therefore, should be utilized properly. Proper utilization of resources covers a wide area e.g. modifying the work structure of your workforce, recycling waste materials, engineering services to make them repeatable etc. This brings about lifelong learning to try to analyze market demands and adjust to them.
Learning to stay ahead of your competition will help you develop the wings that will help you fly effortlessly.
P.S: Tunapanda Institute provides lots of services such as analyzing market needs and product/service consumption behavior, developing strategic business plans, field research work and more. To hire us for these kinds of work, please contact our sales team via info@tunapanda.org or gitonga@tunapanda.org.
