“I have been up against tough competition all my life. I wouldn’t know how to get along without it.” Walt Disney
Competition is often viewed negatively in life. In business, it is positioned as something to be wary of. To fear, even. No matter which industry we operate within, when a competitor emerges our first reaction can be suspicion, quickly followed by anger, panic, or paranoia. Is it a case of copycatting? Another company with the same idea, dreaming up a similar offering, for the same audience. The audacity! It’s easy to become swept up in negative emotions around competition. Yet, after over 35 years in business and having traded against various competitors throughout the years, I would argue that there are positive impacts of competition in business. In fact, I would go as far as to argue that the benefits of competition far outweigh the negatives.
In the following blog, I will set out my argument as to why I feel competition in business can be a galvanising force, covering how competition is a catalyst for growth, innovation and overall improvement.
Read on for my thoughts on the following topics:
- There are no new ideas
- The benefits of competition
- The wider effects of competition on business
- How a competitive market has benefitted me
- Conclusion
- Want to get ahead of the competition?
THERE ARE NO NEW IDEAS
When creativity is your currency as it is in the events industry, ideas are invaluable. It’s important, however, to remember that brand-new ideas very rarely come around.
Even the most innovative and novel ideas, brimming with imagination and ingenuity, have likely transitioned from an original, and more often than not have been done already, in some shape or form.
Realising that ideas are not completely exclusive is freeing in many ways.
You can accept that there will always be somebody doing something similar. Being outward-focused and wary of imitation stifles imagination. Focus more on building your brand and signature style. Be less hung up on being unrealistically original and be more focused on being authentic. Create your brand’s hallmark vibe. Deliver your individual interpretation of an idea or concept, making it fresh, and current. One event planner’s view of a circus themed party is very different to another’s. So keep focussed on what you do best.
Once you have your brand, identity, and confidence in place, creativity flows. And competition, as we’ll see, can only serve to amplify this further.
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THE BENEFITS OF COMPETITION
So, what are the positive impacts of competition in business? Here are just a few ways that I think competition can improve a business.
- Competition drives innovation – Competition pushes businesses to innovate. When companies vie for the top spot, they are compelled to develop new products or services to differentiate them from competitors. The upshot? More choice and quality for consumers.
- Competition enhances quality – In a competitive market, upholding high quality is essential for survival. Products and services must always meet or exceed customer expectations. For the business, this builds brand loyalty and reputation. For consumers – they can be satisfied they are getting the best value for their money.
- Competition encourages efficiency – Competition pushes companies to streamline and improve efficiency. To stay ahead, we must all find ways to reduce costs and eliminate waste without ever cutting corners.
In the current economic backdrop, I would also hope that competition will eventually have a calming effect on inflation, driving down prices as supermarkets and shops vie for consumers’ loyalty. We’ll see on that one.
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THE WIDER EFFECTS OF COMPETITION ON BUSINESS
Ok, I am not a global economist but I do understand business, so we’ll keep to the main points here. It is not just the individual business that grows through competition. A competitive business environment contributes to overall economic growth. Companies constantly innovating, finding a new USP, challenging themselves to deliver in a better or more profitable way is what fuels growth. It creates new jobs, develops a more extensive supply chain, encourages new business start-ups – ultimately enhancing prosperity and the overall standard of living. For consumers, competition can help to regulate pricing. As I touched on above, fair pricing is essential to attract and retain customers in any sector. So there are larger benefits to a competitive marketplace and a booming, competitive economy should be good news for anyone in business.
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HOW A COMPETITIVE MARKET HAS BENEFITTED ME
When I began my event planning journey the events industry was in its infancy. I never had designs on building a party planning empire. Circumstances dictated that I needed to forge a career as a single mum of two daughters. The stars aligned, I spotted an opportunity, and I took it.
If there were others creating amazing corporate events in Manchester at that time, I wasn’t aware of them. Most event businesses were London-based. This was prior to the rise of social media of course. We got our news from the newspapers. We networked in person. Imagine!
As my business grew and competitors emerged, I was compelled to make my business bigger, better, and more extraordinary. The events followed suit. To find a competitive edge, I had to discover my niche and I found it in luxury corporate events where I could bring the most fantastical ideas to life!
To this day, one of the positive impacts of competition in business is that it drives me to find and crucially, to communicate, what makes my business unique. Like any sensible businessperson, I keep a watchful eye on my competitor set, but it doesn’t dictate my strategy. There are new events companies opening regularly and rather than let this stifle our business, or allow paranoia to set in, I’m thankful that our industry is thriving in this way. I have carved out my own path through the industry rather than try to follow others, and continue to do so.
To set myself apart, I draw on my extensive experience, underpinned by the talented (dare I say, young) individuals who make up my amazing team. At TLC we have the perfect balance of experience, ingenuity, youth, expertise and enthusiasm. Our attention to detail is famed, and for good reason. Every element of an event interrogated to see how we can elevate it. That’s what we stand for – always going on step beyond what is possible. We understand and we live our brand. We hustle. We are a huge success, and a large part of that is down to our competition.
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CONCLUSION
In conclusion, one of the positive impacts of competition in business is that it encourages progress and improvement. It challenges companies, including my own, to innovate, enhance quality and to strive to satisfy customers.
Embracing competition as a positive force can lead to a thriving and dynamic landscape where everyone stands to gain.
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WANT TO GET AHEAD OF THE COMPETITION?
This article has some great tips on how to do just that, no matter what type of industry you operate in Competition in Business
Overcome by the sheer amount of competition when it comes to books about business?
Head to Goodreads for reader ratings and recommendations: https://www.goodreads.com/shelf/show/business-competition
There are of course rules and laws around competition in business, find out more at the Competition and Markets Authority