Business owners face tough competition, no matter what industry they try to conquer. While competition may seem like an obstacle, there are several advantages to facing off with rival firms. This fascinating info-graphic explores the benefits of competition for companies and customers.
Advantages of a Competitive Marketplace
There are four main advantages of a competitive marketplace. The first is encouraging innovation and creative thinking. Without competition, businesses wouldn’t feel the need to try and improve their products and think about new ways of operating. Modern-day companies collect and analyze data and adapt business strategies to innovate continuously.
The second advantage is enhanced credibility. Competition sets a standard that businesses must meet or exceed to impress customers, and it promotes honesty and transparency.
Another key benefit is preventing complacency. If a company is selling thousands of products every week or they’re dominating their industry year on year, there’s a risk the owners may start to rest on their laurels. Competition eliminates the risk of getting too comfortable within the marketplace. Instead of becoming complacent, competitive firms continue to innovate and push the boundaries in a bid to impress customers and keep hold of existing clients.
With reviews and ratings more important than ever before, the final benefit outlined in the infographic is improved customer service. Businesses today know that it’s not enough to provide a product or a service. The consumer will also judge the level of customer service they receive.
Real-life examples of competition show just how important it is for companies to have rivals pushing them. Take a look at the statistics related to FitBit vs. Nike, Microsoft versus Apple and Pepsi against Coke. It’s clear to see that competition is healthy.
Infographic Design By University of Alabama Birmingham