Have you ever thought that your business will run smoothly without any competitors out there? For most people, the competition is often viewed as something not too pleasant, even a scourge. However, for the true entrepreneur, competition is not the “ghost” that scary shadowing his every move. Business competition can actually be used as a driving factor of business progress.
For those of you who are still hesitant to make the competition as part of the inherent dynamics of the business, then you should read the 3 reasons to embrace the importance of following the competition.
Competition depress prices while maintaining quality
Economic law would work well in a healthy market competition and passionate atmosphere. With the creation of a conducive environment, every company that exists in the market will try to attract customers by performing a variety of ways such as improving the quality of products / services offered, keeping prices to remain stable, as well as developing new product / service that better accommodate the needs of consumers.
Regulations set by the government (which is overly restrictive market mechanism) or other things that discourage entrepreneurs to jump into the market will only make the market less competitive. If competition decreases both in quality and quantity, it is certain that the price will rise and tend to be uncontrolled, the quality is declining, and will only appear the product / service in smaller amounts.
Monopoly, which is the polar opposite of healthy competition, will make a less attractive market to enter because of the provider / supplier will not get any compensation if they can lower the price or increase the quality to attract more consumers. And consumers are also in a difficult position because it has no other choice.
Competition encourages change and creativity
Every entrepreneur trying to meet the needs of consumers while depressing the price that is relatively lower than its competitors. In addition, they also have to maintain efficiency when competing.
As we know, the market mechanism is usually preceded by the appearance of a business that serves customers in the scope of a particular market. Business first appeared and success can reap much profit then the competition begins when other businesses come in and target markets and consumers alike. This competition has led to an ever-changing business people so that they can survive and have a place in the middle of the market.
Competition keep the business remain dynamic
Thanks to competition, entrepreneurship has always been a topic that will not be drab to be discussed and practiced. The market is necessarily always changes. Competition is always there everywhere. Instead of scary for us, the element of risk and uncertainty in entrepreneurship is an attraction that makes entrepreneurship exciting from time to time.
Simply put, entrepreneurship can be defined as a process of continuous discovery. Every time we make a choice of business, we will get a quick response from consumers. The logical consequence is twofold: the demand for the products / services we rise or fall. When demand falls, the market seems to give a hint that we should start thinking about a different product or service. When demand rises, prices will begin to decline.
Do not be afraid to fail or loss. It is a natural mechanism that carried the market to tell you that teus improve or move to a new business in the field.