How to Beat Your Competition in Business (2024)

Healthy competition separates great companies from those that are just average.

Of course, you want to be one of the great companies… but it’s challenging to stand out from your competitors and win new customers. Depending on your industry, you may be faced with hundreds, if not thousands, of other businesses competing for market share.

To beat your competition, you must develop and implement strategies that give you a leg up on your competitors.

Here are some actionable tips and strategies regarding how to handle competition in business, and how to use that competition to improve your company.

Know Your Customers

To truly connect with your customers, you have to know your audience. That starts with customer research.

Fortunately, your existing customers can help. Reach out to your customers through social media and email. Ask them to complete brief surveys or participate in market research panels for incentives like gift cards or other rewards for their time. Poll your customers on social media to gauge their reaction to new products and services or to get details about their pain points or other challenges.

Many brands perform detailed customer research behind the scenes that the public never sees. They leverage that research with well-defined marketing messages connecting with their target audience.

Solve Problems

As you learn about your customers’ challenges and pain points, look for ways that you can solve their problems. When your products or services help customers, it is easier to make a sale and encourage brand loyalty.

Netflix is one example of a company capitalizing on its ability to solve a problem. When Netflix was founded in 1997, the company solved several consumer problems, including eliminating the need to go to a video store and avoiding late video return fees.

Analyze Your Competition

You can’t beat your competition if you’re unaware of what they’re doing. Start with a detailed analysis of your competitors. Conduct research and create a spreadsheet of each competitor’s tagline, service or product offerings, unique qualities, target audience, location, marketing campaigns and strategies, etc.

If you have a variety of competitors, focus on the top five. This will help you hone in on the businesses seen as direct competitors. For example, Nike doesn’t need to research every sneaker or sportswear manufacturer competing with them. Instead, they focus on companies that take away some of the key market share, such as brands like Adidas, New Balance, Reebok and Under Armour.

Determine Your Unique Selling Proposition (USP)

Once you’ve analyzed your competition, identify what sets your business apart from those competitors. Your unique selling proposition (USP) is a clearly defined benefit that - in the minds of your target market - makes you better than those other brands.

Take the clothing company Patagonia for example. Their USP is “We’re in Business to Save Our Home Planet.” Their USP isn’t about a product or service; it’s their reason for existing as a company. Patagonia doesn’t just consider itself a clothing company. Instead, they view themselves as a lifestyle brand dedicated to making a difference in the world. Their USP is targeted to a particular type of individual rather than everyone. And that is what separates a good USP from a great one.

Refine Your Messaging

With your USP defined, it’s essential to make sure that all of your messaging reflects and supports that USP. You may need to update everything from your tagline and your logo to your style guide and marketing approach.

Let’s use international brands such as McDonald’s and Apple as examples. Their branding is consistent across every platform, and the messaging you see on their social media pages is also present on their website, their product packaging and in every other interaction you have with the brands.

Consider New Markets

Moving into a new market can open up a world of new opportunities and provide the chance to reach a new audience. By focusing on multiple markets, you may be able to grow your business into a more extensive operation. Consider focusing on a different customer demographic or even moving into a new industry that could also benefit from your product or service.

Red Bull is an excellent example of this. They may have originated as an energy drink brand, but the brand quickly moved into the media world. By producing sports and lifestyle content, Red Bull’s media branch supports the energy drink branch, reaching new audiences and building brand awareness.

Focus on Customer Relationships

Building meaningful customer relationships is key to competing with other businesses. When you take the time to engage with your customers and provide a positive experience during every interaction with your business, you can build customers' trust in your brand. Customer relationships are the foundation of customer loyalty, and a good relationship can keep your customers from buying from your competitors.

Zappos demonstrates this dedication to the customer relationship through its excellent customer service. The company has earned a reputation for putting extra effort into ensuring a positive customer experience and has built a loyal customer base in the process.

Ask for Feedback

Continually ask your customers for feedback. If you follow their advice on how to improve, it helps you stay ahead of the competition. Customer surveys and social media polls are excellent ways to monitor how well your business is doing and what changes you should implement to stay competitive.

Amazon has learned from and listened to its customers. The retail giant gradually rolled out Amazon Prime, one-day shipping, and even brick-and-mortar storefronts based on the feedback it has received from customers.

Continue to Innovate

Once you experience success, it’s very easy to become stagnant. But that mindset will likely restrict your business growth or even threaten your future success. Instead, focus on what motivated you to start your business, and set annual and long-term goals to ensure you continue to move forward.

Let’s use Apple as an example because they are one of the world leaders in innovation. The business started with a single computer but has grown to encompass must-have items like the iPhone, iPad, and their corresponding technology. It’s a prime example of what your business can achieve if you never settle and continue to innovate.

Share Your Expertise

One of the best ways to establish your business within your industry is to share your expertise through content marketing, speaking, and mentoring. This type of leadership not only makes you the go-to authority, but also builds trust in your products or services.

Industry leaders who share their expertise are also well-positioned to inspire employees and guide businesses through periods of growth and change.

Takeaway

Your business is bound to face competition from other businesses, but that competition can drive your business to evolve, innovate, and improve. You can compete with other businesses in many ways, from becoming the go-to authority in your industry to genuinely getting to know your customers. If you have questions or want to learn more about becoming a member, you can contact the Business Journals Leadership Trust today.