In today’s competitive market, it may seem that to build something truly original and be the first to market is the only way to succeed. But without people who have gone before, you have no path to follow. We can learn a lot from competitors – what has worked well and hasn’t worked well for them can help set good standards for the best ways of doing things. If we are not the first, we don’t have the difficult job of explaining why the new solution matters and why it is better than the current one. Think about the struggles of Dyson.
Even if you are the first, eventually others will catch up. Think of Uber. They created an original concept that disrupted the taxi industry. But they were soon followed by competitors with their own versions of the same concept. The answer is to identify a problem that is not being solved in the most effective way and do it better than the competition.
Competition is beneficial to your customers. They have more options so they can choose the product or service that best meets their needs. It also means you have the opportunity to serve the right people who really appreciate what you do rather than trying to serve everyone.
The more people who do what you do, the lower the price will be. If there are lots of people offering the same thing, pressure to lower the prices will increase. Think about the supermarkets. They are always competing against each other. This is good for a customer but can make it challenging for a business. The answer is not to be so price focused. Rather, offer something unique that sets you apart in the sea of competition. In this way, competition challenges businesses to continue innovating and do something different.
In conclusion, competition is neither good nor bad. It needs to be understood, and you need to ask the right questions and use the information in the right way. So, what questions should you ask?
Are you solving an important problem more effectively or efficiently than the competition?
Are you solving an important problem but in a different way that adds more value to a specific group of people?
Is there a big enough market for what you are doing?