Last week an incident happened with me, I was having lunch at a restaurant, and a guy sitting on the table next to me was having a chat with the restaurant owner and simultaneously having his lunch. The conversation was like this :
Guy: Aur sir apke restaurant ke samne apka competitor aa gaya hai.
Owner: kahe ka competition, who bhi koi competition hai, hum to khud hi chahte hain ki sala yahan do char restaurant aur khulen to kuch logon ko aana jaana badhega.
Now after hearing to this conversation, I was forced to think, because all this time in our MBA and our respective jobs we have been learning , how to kill the competition, we all want competition to be cleaned up from the market, but don’t u think that this will in turn can also affect our business in a negative way. What I want to say is like assume that there is only one player in a particular category, so the cost incurred to establish himself as a brand will be much more than the situation if the competitors have been present in the market, because the company not only have to market itself but also have to market its category.
Now many of you would say that if there is no competition why to do marketing, because consumer will ultimately buy our product, it might be the case in the basic needs of the people, but its not the same case in every category. Remember how Kellogg’s strived to make its mark in Indian market as there as no existence of the player which the served the market with same product.
In a simpler way, you are walking on Delhi streets, with 45 degrees and sun above your head, and you see a Pepsi banner or a glow sign board, at first sight of that Pepsi banner you do not get attracted toward the Pepsi, but instead you get attracted to the category, and then if you are a die hard coke brand loyal, you would go and ask for coke rather from the retailer. So, in a way your competitor not only market itself but also spread awareness about your brand because it spread awareness about the category to which it belongs.
And if we closely observe the statement given by the owner, which shows if competition is not present then the chances to achieve the pinnacle in case of sales number, will also be not possible, that is why we also find a lot of shops of same trade in a lose vicinity.
The next good thing about competition is that it increase the scope for you to improve, As in imagine bajaj scooters having no competition and maruti udhyog with no other player in indian market. competition forces you to work hard to survive in the market, but it in returns also helps the company to innovate and grow. The best example to quote would be telecom industry, with increase in competition, we are witnessing the most innovative services and solution offered by the companies.
So, what i believe is Competitors are very much required .................
