One of the biggest challenges any new business owner will face
is dealing with the threat of new competitors who want to get a
piece of your market. This is something that you cannot get away
from when in business so forming a powerful strategy even before
you start up is very important in order for your business to be
successful in the long term.
Additionally it is not only very important to know and
understand your direct competition but you also need to now
about indirect competitors in your market. Using the internet to
spy on your competition is a very powerful marketing strategy.
Nearly all the goods that are available on the market have
substitutes and compliments.
An example is if someone wanted to purchase some powered
detergent if she or he could not find any in the supermarket
they can then probably decide to buy liquid detergent instead.
This is also true for any type of industry because customers
will always be able to find substitutes for services and
products that they can't find. We also need to consider having a
very effective distribution system that will allow you to reach
targeted customers where they are located; this will greatly
increase your money earning potential.
It is also a very good idea to always check out the features of
your competitor's products, the quality and price range that
they offer.
Being aware of the weaknesses and strength of you competition
and comparing it with your own will give you the opportunity to
put in place strategies that will allow you to effectively
compete in your marketplace. You would want to concentrate on
your good points and try to take advantage of your competitor's
weak points. Remember your competition would be doing the same
to you, they would try to point out your weak points to your
customers to try to improve there market share.
In addition to your present competition, you should also
consider future competition because it is very possible that new
competitors will try to enter your market in a couple of years.
You can visit blogs, forums and chatrooms that are related to
your particular market to keep up with new trends, technologies
and potential threats to your business. Having a very strong
strategy and a loyal customer base will enable your online home
business to survive all these potential challenges. Most new
businesses put there emphasis on a low price range and this
could either be a good or a bad for your business.
An example of this is that it can be great if the product that
new competition is offering has a lower price but if it is of a
poor quality this will establish your product as a superior good
or product.
But, if they are offering better good and services at a much
lower price, then you might need to get involved in a price war.
Never forget that your strategy should always depend on the
particular situation and perception of your market. If you would
like to know more on this topic check out the link below for "Dotcomology" the art of making money with your home business.
Anderson Josiah: Andy The Home Biz Wiz recommends for
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