Competition is embedded like a chip inside us right from childhood. We have been compared with our peers for almost everything and have been pressurized to perform better, usually coupled with an incentive or reward.
As mentioned in the previous post, a detailed research is a pre-requisite before starting any business. One important aspect of this research is to STUDY COMPETITION. Drawing inspiration from competition and adding value has been prevalent for centuries. Many entrepreneurs build upon an existing idea and tweak the product or service offering either altering the people, process and technology.
Despite the business concept being similar, it is important to have a clear differentiation between your offering and that of your competition. This making competition research imperative.
Jugaad and Tukka are our crude versions of design thinking and innovation. Indian entrepreneurs whether formally trained, self-taught or professionally qualified have always depended on a few basic factors to cut competition.
These tactics circle around OFFERING:
- More value at existing cost
- Better quality by adding features
At the same time, they work on increasing their profit margins by reducing operating costs & finding loopholes in tax and legal framework.
However, times have changed. Today, the competitive scenario offers more choices & information to the customer to make their decision to buy. Today’s customer is an INFORMED customer, thanks to the plethora of information available to them.
FIVE things to consider if you want to stay Competitive:
Today, customers arrives at a buying decision based on COST, QUALITY & DELIVERY. However, an INDIAN CUSTOMER consider two more parameters in their decision making process i.e. After sales service and resale value.
Being a first-mover will offer a temporary edge. If no one else if offering what you have to offer, then you have the first mover advantage to capitalise but sooner or later, competition will catch up. In such a scenario, how are you ensuring that your next version will still be ahead of competition and you will have an edge above them.
So, to conclude, an entrepreneur has benchmark his/her product or service offering vis-à-vis competition on the above mentioned parameters and the following questions need to be answered:
- Who else is offering the same / similar product or service ?
- How is our offering benchmark on Cost, Quality & Delivery vis-à-vis competition ?
- In case, no one else is offering it, How fast can competition catch us ?
This is the second post in the ten part series on 10 Cs of Entrepreneurship. #StayTuned for the rest.
Do let me know what you think of the above post? Are you planning to embark on the entrepreneurial journey? Let me know in the comment section? I am happy to answer any queries as well.
Disclaimer: This series is an original piece of writing. All copyrights remain with the author, any content re-purpose, copying or lifting is not allowed. The author is an award-winning Sports Person, Business Coach & Digital Maverick. He has written this post based out of his own personal experiences while handling large brands. Incase you need to discuss business, please email: email@example.com.