1. The document discusses various strategies for coping with business competition, which is an inevitable part of operating any business. It defines direct and indirect competition and explains how competitors can be classified. 2. Key recommendations for coping with competition include knowing your competitors and customers, differentiating your business to stand out, improving marketing, updating your image, focusing on customer retention, targeting new markets, expanding product/service offerings, investing in employees, and planning for future growth. 3. Overall the document stresses the importance of balancing respect for rivals with a focus on outperforming them through superior execution of the strategies discussed.

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MODULE 11: HOW TO COPE WITH BUSINESS
COMPETITION
By
Hon. (Mrs.) Mary Iyasere

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INTRODUCTION
Business competition is defined as rivalry in which every seller tries to get what
other sellers are seeking at the same time: sales, profit, and market share, by
offering the best practicable combination of price, quality and service. Where the
market information flows freely, competition plays a regulatory function in
balancing demand and supply. (Business Dictionary.Com)
Competition is one of the most important parts of living and working in this world.
It exists and you have to deal with it, whether you like it or not. Some people like
to compete because they believe competition helps them improve and progress,
whereas, many other don’t like to compete because they cannot tolerate
competitors. The second group will have a lot of problems in life and business.
Why? Because as l said, whether you like it or not competition exists and you have
to deal with it.
Competition in a business context is either direct or indirect for any start-up or
established company. Even if you have a product or business service that is
completely niche or unique, it is impossible not to face some competition.
A direct competition is more serious for start-up than an indirect competition.
Direct competition comes from business producing or selling products or services
comparable to another in the same market. Indirect competition on the other
hand, happens when businesses compete for the same level of the profit margin,
but they may be in different sectors of the same market. A cinema for example will
face direct competitions from other cinema; however they will face indirect
competition from other leisure providers.
COPING WITH THE BUSINESS COMPETITION
Having acknowledged the fact that competition is part of life and business, how do
we then therefore cope and survive in a highly competitive environment. Below
are some of the useful strategies on how to cope with competition.

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1. KNOW THE COMPETITORS
Find out who your competitors are, what they are offering and what their
unique selling point (USP) is. This will identify the areas you need to
compete in, as well as giving you a platform for differentiating yourself.
2. KNOW YOUR CUSTOMERS:
Customer expectations can change dramatically when economic
conditions are unstable. Find out what matters to your customers now –
is it lower price, more flexible service, the latest products? Revise your
sales and marketing strategies accordingly.
3. DIFFERENTIATE
It is essential to give your customer good reasons to come to you rather
than a rival. Your USP should tap into what customers want and it should
be clear and obvious-no-one should have to ask what makes you
different.
4. STEP UP YOUR MARKETING(THE3Ps -PRODUCT, PRICE & PUBLICITY)
Make more effort to tell people who you are, what you sell and why they
should buy from you. It doesn’t have to be expensive; marketing can
range from posters and leaflets. Advertising in local media will help.
5. UPDATE YOUR IMAGE
Simple steps such as painting front of your premises can make your
business look more modern and inviting. Also, business cards, stationary,
branded packaging, clothing and so on can be paid attention to. Does
your image reflect your USP?
LOOK AFTER YOUR EXISTING CUSTOMERS
 They will be your competitors’ target market. Provide better customer
service by being more responsive to their needs and expectation. If feasible,
consider offering low-cost extras such as improved credit terms, discounts or
loyalty schemes-remember, it is cheaper and easier to keep customers than
to find new ones.
 Upgrade Most of your customers to the client and Advocate grades

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7 TARGET NEW MARKET
Selling into a greater number of markets can increase your customers’
base and spread your risk.
8. EXPAND YOUR OFFER
What related products or services might your customers be
interested in? You might even consider diversifying into another area.
BE THE BEST EMPLOYER
o Take good care of your customer caretakers (your workers) by
training them and making them all marketers with the objective
of making customers satisfaction a culture of your company.
o Skilled, motivated staff is important for vibrant and growing business.
Provide an enabling environment for your staff to give their best at all
times – people are often more impressed by a good working
atmosphere and benefits such as flexible working environment and
structured career development. Be nice to them.
LOOK TO THE FUTURE
Businesses that plan for growth are more successful than those that are happy to
stay still. Keep up with developments in your sector, follow consumer trends,
invest in new technology and crucially, have a clear idea of where you want to be
in one, three and five years’ time.
We shall conclude this discussion with a quote from Richard Branson, the owner of
Virgin Atlantic Airlines. In his words in entrepreneur.comblog, he remarked that “if
you want to be successful in business, you need to welcome competition with open
arms – just don’t let them walk all over you. Strike the right balance between
respecting your rivals and focusing on how you can beat them and you will have a
winning formula”
References:
www.marketingdonut.co.uk
www.virgin.com