If you’re a business owner, you might think that competition is another hurdle waiting to trip you up. In reality, competition is crucial for both companies and customers. The infographic below highlights some of the most significant advantages of operating within a competitive industry.
One of the most critical benefits of competition is innovation. Without rivals to push you and challenge you, there’s no real reason to try and improve products and develop new services or inventions.
Competition drives innovation, and it has played an integral part in the expansion and growth of individual brands, as well as marketplaces in general.
Competition also provides credibility. Customers can benefit from buying from companies that are competing against rivals because it encourages firms to set a high standard. Companies can impress clients by displaying honesty and transparency and by showcasing knowledge and insight.
In addition, competition keeps complacency at bay. This can be seen by analyzing and exploring the real-life examples outlined in the infographic. FitBit, for example, is now the number 1 seller of wearable technology, despite the fact that Nike has been around for decades.
By challenging existing, established brands, new businesses keep high-profile companies on their toes.
Finally, and most importantly for consumers, competition encourages high standards of customer service. Companies work hard to ensure that customers feel valued and they try and outperform their rivals to secure future business. Service is particularly important in this day and age, as reviews and ratings are widely available and easily accessible.
Competition can be perceived as an obstacle, but this infographic explains why it’s crucial for modern-day businesses and consumers.
Infographic Created By University of Alabama Birmingham