“If recognize|you recognize} the enemy and know yourself, you wish not concern the results of 100 battles.”
That quote comes from the Chinese military genius, Sun Tzu, UN agency lived two,000 years past.
People usually get terribly agitated regarding the competition. they will complain regarding unfair rating, selling techniques or maybe that their costs area unit too high which their quality is poor.
They are metagrobolized that folks still purchase from them.
Unfortunately, they’re not asking the right questions and are not looking at the situation from the client’s perspective.
Why the incumbent has ‘loyal’ customers
Because customers clearly still value them – even if they complain. It might be just down to the fact that this competitor has been in the market forever and is very big.
Familiarity confers reassurance and as such people will often tolerate substandard products and services and high prices.
Indeed, IBM used to boast that you never got fired for buying their computers. At least you’ll be saved from looking foolish in front of your colleagues as opposed to the other guy who bought from the new ‘kid on the block’ and got a bad deal.
Directly confronting such a competitor can be ruinously expensive. Most small businesses don’t have deep enough pockets to do that.
It’s often far more sensible to circle around them.
Take the example of the burger restaurant business. McDonald’s is the leader in this market and a very tough competitor. But the fact remains that they don’t serve the entire market. Attempting that would undermine their brand and market positioning.
But McDonald’s has considerably grown the market for burger meals. When markets grow and mature, they splinter at the margins. And that’s often where the best opportunities lie.
Not all burgers are Big Macs
Many dinners also want gourmet burgers, exotic meat burgers, healthy burgers, super-sized burgers even vegetarian ones. Those catering for those desires are homing in on a different kind of customer. They want something different to a Big Mac.
Most markets have such people.
Importantly, those catering to those different tastes for burgers are not competing head on with McDonald’s with its almost unlimited resources and low costs.
A reason to study the competition more closely is not just to find out why they’re successful or to beat them – but to discover the niches they won’t and often can’t satisfy.
That might mean a different product or service, but it definitely requires an alternative market positioning and unique selling proposition. It’s to be known for something different to the 800-pound gorilla in your market, but that is still valued by enough people to create a viable business.
To attract more people consider making your offer as low-risk as possible and even make your buyers look clever in front of their colleagues, friends and even rivals.
And to finish off here’s another pertinent reminder from Sun Tzu: “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek win.”