Business rivalry turns HOSTILE when competitively similar companies decide to enter full-fledged price competition (a.k.a. PRICE WARS).
Here’s how it occurs, what it does, and how to avoid it:
HOW IT OCCURS AND WHAT IT DOES:
Increasing market shares is a way of gaining the competitive edge. It can be achieved by dropping prices. When two Business Giants compete through this strategy, they enter what is known as ‘price wars.’
The fierce rivalry based on price competence turns profits from industry over to consumers. The consumers enjoy the best offers from all sides. While employees suffocate and managers burn all available resources!
HOW TO DEAL WITH IT:
This competitive strategy is nothing but self-destructive. In its fulfilled form, it ruins businesses, markets and even whole industries.
Entrepreneurs and Small Business Owners should devise strategies of market competence on dimensions other than price.
Few dimensions exist that allow Entrepreneurs and Small Businesses to create a healthy competitive arena for multiple players without handing over all the profit to the Consumer.
PRODUCT FEATURES
Your competitor may offer cheaper products, but you can focus on developing new features that help you distinguish your product as SUPERIOR!
Bigger companies need R&D Teams.
BRAND IMAGE
What is you stand for? What does your product mean?
Forget about Price, work on your brand IDENTITY!
Safe investment is content marketing. Always be Digitally Present. Always Post, Share, Discuss, Write and Record Online.
Create Content and be Creative about it. You will outpace your Competitor by your SUPERIOR PRESENCE!
SUPPORT SERVICES
You may EXPAND and offer Services with your Product. It is always easier for you to offer additional Services than to your Competitor because you have First-Had Data!
Listen to your customers need and INTEGRATE FORWARD!
DELIVERY TIME
Go LEAN! Develop PERFORMANCE STRATEGIES!
Figure out your BOTTLENECKS and tackle them one by one!
Start with your Timing to Market. Can you do it FASTER? Can you make it BEFORE Your Competitor?
Focus on Your Timing!
Market Competence Outperforms Price Competence any time of the day!
FromBuzzToScience 