Dealing with competitors is important but don’t lose sight of who’s most important – customers. Be alert and watch for weaknesses (yours and those of your competitors) but goals, rather than competitors, should be the main driving force of your business activities.
Let’s look at these lists of do’s and don’ts.
Don’ts:
- Panic
- Get into a price war i.e. reduce price
- Slack on Customer Service
- Kick Off a Large Marketing Campaign
- Badmouth the New Competitor
- Study the Strengths and Weaknesses of the New Competitor
- Improve Your Quality and Customer Service
- Monitor Your Business Closely
- Ensure Key Employees are Happy
- Ask Customers About the New Business
It’s very likely that many customers will want to at least check out the new business once. You want to continue to put your best foot forward, but don’t blindly overreact when people look at the new entrant.
Do’s:
Treat the new competitor like (it might seem obvious) a competitor. Find out what they do well and what they don’t do well, and how their business is likely to impact yours. Find out what people think about the new business, and keep a close eye on your sales numbers and other major metrics and above all, operate at your best, to give the best impression for both customers and employees.
Source: Handling Competition: Dos and Don’ts by Rick Gossett
