Looking At The Market Competition
The absence of any meaningful market competition might not always seem to be good for your business. The successful marketer will always focus attention on the strengths as well as weaknesses of his competitors. It is the overall marketing approach and the uniqueness of product or service that will attract new customers and build global market competition.
For example, visualize a cluster of small specialty retail stores within a huge shopping mall. Although dwarfed in their location, together, they reinforce themselves by offering a great one-stop shopping experience to their customers. The global market competition is great for drawing potential customers and growing their base.
A market competition analysis helps one can easily follow the laws of supply and demand in a competitive market. Competition in market promotes new ways to attract customers such as developing new products, lowering prices, improving quality and offering quality services. It is more or less like a competitive team sport, where, more the number of teams, the harder and smarter all the teams have to o play show the best games and please the audience as well!
The market competition encourages healthy change and keeps business exciting. As the market is continually changing, entrepreneurs are always taking risks, trying out new strategies, products and plans. However, just like there are rules and regulations for the sports team, there are regulatory agencies to keep business practices in check and promote only healthy market competition. One of the major roles of any government in business is to help stop any development of monopolies. A monopoly develops when one company or a group of companies gains complete controls on a product and its supply as well. There are various causes of monopolies and when a company is able to find monopoly, it may drive its competitors out of business consequently and even prevent new companies from entering the market.
On the other hand, any government regulations that prevent entrepreneurs from entering the market, will also prevent global market competition place, thus making it less competitive. And less competition in market will unavoidably leads to higher prices, lower quality as well as fewer new products and services. Hence the market competition analysis is healthy for any business.