3 reasons why having competition is good for business

You’ve just launched your business, and it’s doing well. But months later, similar businesses opened nearby. Should this scare you to keep doing business?

While having little to no competition seems to be a better time to start, having more competitors is actually great for business.

Take Apple for example.

Before Apple joined the mobile phone market, there are already plenty of mobile phone companies in the world. And in 2006, almost a billion units of mobile phones are sold globally.

And believe it or not, Apple’s target for selling iPhones and gaining market share in the first full year is just 1% market share!

But keep in mind that 1% of a billion is already 10 million units of mobile phones. And that’s a lot of phones already with just a tiny slice of the pie.

Apple weren’t afraid of the competition. In fact, they embraced it.

Here’s the full presentation of the iPhone 1 by Steve Jobs back in 2007.

And to date, Apple is leading the mobile phone market, with a market share of 27.63%. And the number of mobile phones is expected to sell at 1.35 billion units globally.

Here are 3 reasons why having competition is good for business:

1. There’s a strong demand for your products or services

Sometimes having a unique business idea won’t necessarily mean that it will sell a lot. But if you take this route, prepare to educate your target customers on how to use your products or services because It may take some time for them to accept it.

So joining a market that is healthy and already has a lot of customers may be the best choice.

And the only challenge now is how you get market share.

So, how do you get a big slice of the pie?

Offer only the best products and provide the best customer support possible. And this will bring more loyal customers for you.

Plus, improving your digital marketing strategies may help you get more customers online.

2. It incentivize businesses to innovate

Having competition motivates us to improve our products or services.

Can you imagine if Apple didn’t introduce the iPhone to us? We probably still be using keypads from Nokia right now.

3. It benefits everyone

Even though you and I do business, entrepreneurs are also consumers.

We use a lot of products or services from different brands. And because of competition, consumers enjoy the benefits of having low prices, great customer service, and innovative products.

Final thoughts

Don’t fear your competition. Embrace it. It is an opportunity for your business to grow and thrive.

I hoped that this article helped you start your own business without fearing the competition.

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Featured image credit: Gratisography