Competition Inspires Innovation
The need to excel past your competition gets the think tanks going. It gets the cogs of your brand spinning and inspires great minds to come up with new and innovative ideas to produce a better product or service. Companies can become lazy over time if they have a loyal consumer base and they have no direct competition. There’s never a need for innovation if your consumers are purchasing your product and you have no competition trying to show you up.
Consumers Love Having Competition
Your customers love having a direct competition to your product or service. Even the long term loyal customers like direct competition because it gives them reassurance that if their current company fails them they can make the switch. Consumers are more likely to buy from companies that have a competing company in competition with them. It also gives people the illusion that a product or service is worth more than it really is. When you’ve got competing companies like AT&T and Verizon or Budweiser and Bud Light, people eat those products up. However, ask yourself, would any of those companies be a fraction as successful without their direct competition to battle with? That’s how they got their start in the first place.
Having Competition Will Identify Your Weakness As A Business
One thing that your competition loves to do is take inspiration from you. I don’t want to call it “stealing” because I feel taking inspiration is a more appropriate usage. If your competition finds a flaw in the way you run things or your business, they’re more than likely going to find that flaw and use as it one of their main marketable selling points. As an ever evolving business, you should always be looking to polish out your flaws and flaunt your strengths. Most of the time, a business never knows what their weakness is until their competition points it out for them.
Competition Kills Complacency And Laziness
Let’s face it, when a company eats up and buys their competition, they become complacent and lazy over time. The innovation, creativity and what made them such a great company in the first place slowly starts to dwindle. Why is this? Over time, when you have no direct competitor taking a chunk of your profits, it’s hard to make room for innovation when you simply don’t have to. Why change the brand or the face of the company when it’s milking money just how it is, right? This is usually how a company likes to operate until that competition steps in and offers what your company has been slacking on.
Competition Will Bring Your Company Back To Its Roots
Over time, you might find that a business strays away from their core market or demographic. The main core demographic that made them successful in the first place. Having a competitor come in and try to take a chunk of that will wake the company up and force them to target their core audience again. It’s not something that’s even done intentionally a lot of the time and most companies don’t even know they’re doing it until it’s pointed out to them.
Having competition not only re-innovates the company and inspires brilliant minds to re-shape how consumers see a company but it also gives consumers the power of choice.