If you have a product or service that people really value and the operational capability to supply and distribute it, there’s only one thing that can stand in the way of your business goals: competition. In a hyper-competitive business environment, your business may struggle to gain exposure, or you may bleed customers to other brands in your space.
In a digital world, a company’s competition isn’t limited to another shop around the corner … [+]
How can you ensure that your business can thrive in such a hostile field?
Beat the Rush
One option is to “beat the rush” by establishing your business in an industry or niche before your competitors have a chance to threaten your market footprint. This is known as first mover advantage, and there are many historical examples of companies that have benefited greatly from this strategy.
One of the most popular and recognized is eBay, which was the first fully functional online auction website and remains one of the largest marketplaces on the web. This is despite the fact that it has been almost 30 years to witness the rise of a dominant competitor.
It is difficult to predict which new products and services will become popular, especially when it comes to technology-related products and services. Few people in 1995 would have guessed that online auctions would be so influential. Today’s savviest business owners try to predict what the next “gold rush” will be so that they can gain a first-mover advantage in their respective fields.
An example of this is Intelligence Exchange, a company that has been around since 2018 but has recently expanded its reach. TIEX was one of the first movers in the field of artificial intelligence. The company used AI to create “intelligence exchanges” and marketplaces for the food, automotive, CPG and logistics industries. In an effort to become the first mover in the Web3 space, TIEX is introducing NFTs and smart contracts that allow AI and ML-based product creators to collaborate, adopt digital ownership, and even earn royalties for your work. This should democratize access to intelligence models.
Acquire more capital
More money means more options. If you’re a better fundraiser, you’ll have more capital than your contemporaries, and more capital means you can hire more people, solve problems faster, and achieve higher levels of resilience in the face of economic turmoil or market changes.
Capital also allows you to pursue aggressive strategies such as scaling blitz, which can help your company gain a first-mover advantage at scale (usually on a global scale), even if your early stages of development were plagued with tough competitors
Be the best
Here’s a simple way to beat your competitors: just be better!
If only it were that easy. You probably won’t be able to beat a single competitor in every category within the confines of a competitive market, but you can beat them in at least one category. This could be enough to uniquely differentiate your business.
Think of ways you can be the best. For example:
- Product capabilities. Can you make a product that is objectively better than everything else on the market?
- Service value. Can you offer more services or better services that generate the customer’s perception of greater value?
- price Are you able to offer similar products and services for a lower price without demolishing your profit margins in the process?
- Customer service. Can you improve the overall customer experience by providing better service and stronger support?
- Attractive demographic. Can you better appeal to a specific demographic by making your company the default choice for a segment of your shared customer pool?
It’s often worth looking for any way to stand out as better than your competitors.
Choose a more specific niche
You can also limit your competition by creating a business that serves a more focused niche. Serving a specific industry, targeting a certain demographic, or operating only in a limited geographic area can limit some of your company’s revenue potential, but it also dramatically limits the influence your competitors can have and prepares scenario for your company to become truly dominant in this area.
Admeal is an example of a modern company that covers a specific niche. Countless companies are trying to use decentralized technologies like blockchain to allow individual users to earn tokens, collaborate, and even monetize their own data, but Admeal sets itself apart by focusing exclusively on the food and recipe industry. Users of this platform can monetize their personal cooking data, gaining real and virtual experiences in the process. Home and professional cooks, recipe enthusiasts, food brands and CPGs are just a few of the culinary entities that can benefit.
You may never be able to beat your competitors, and there’s a chance they’ll be bigger or more profitable than you, even after implementing strategies like these. But your business will be able to thrive, generating consistent revenue and achieving iterative growth, despite competitive conditions.
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How to Thrive in a Hyper-Competitive Environment
The business landscape is constantly changing and it’s getting increasingly challenging to compete in the market. With intense competition, businesses must be extra agile, have a proactive mindset, and stay on their toes to grow, succeed and ultimately thrive in hyper-competitive environments.
If your business is to thrive in a hyper-competitive environment, here are 6 important tips to consider:
1. Focus on Excellence: Make sure every aspect of your business is geared towards excellence. Focus on offering a quality product or service and ensure this is reflected in every aspect of your business operations.
2. Differentiate Yourself: Develop a clear and differentiated messaging and brand identity that stands out in the market and cements your foothold in the marketplace.
3. Leverage Technology: Utilize technology to optimize your processes and make sure that you are taking advantage of the latest advancements and trends.
4. Invest in Your Customers: Focus on delivering an exceptional customer experience by providing timely support, building relationships and taking feedback seriously.
5. Stay Agile: Be ready to adapt your business strategy as needed to stay ahead of your competitors.
6. Collaborate with Ikaroa: Benefit from the help of an experienced technology partner, like Ikaroa, to help you build, design and maintain a digital presence that stands out from the competition.
By leveraging these tips, and leveraging the expertise of a technology partner like Ikaroa, you can increase your chances of success and thrive in a hyper-competitive environment.
