Competition: How to Analyze and Face it in the Changing Market

A customer who bought your product (or service) why should he repeat this experience?

He might change his mind because something changes and you are put out of business.

Be on your guard, as the client is continually approached by new proposals and when they are better than yours, you can rest assured that he does not even greet you.

We don't want to scare you but to warn you.

Everything flows, Panta rei. Watch out for market changes. Or you are doomed!

Market evolution: everything changes very quickly and if we are not careful, it's trouble!

As just mentioned, we do not want to intimidate you but open your eyes with an example that you undoubtedly have in mind.

Do you know, or better, do you remember BlockBuster?

He was born in 1985 in Dallas (Texas, USA) with the first store.

It grew at an incredible rate until it opened a store every 24 hours and reached 700 stores in 1989. In 2004 it exceeded 5.9 billion dollars with 9,000 stores and 84,000 employees.

The market changes, everything was changing and they didn't notice.

Here comes cable TV, satellite TV, video on demand that reduces revenue margins. The proposals of the competitors increase and in a few years reduce the competitiveness of the colossus.

We are in 2010, a terrible crisis slaps BlockBuster and the losses are unsustainable. The video rental company was sold in 2011 to a television company and at the end of 2013, despite the efforts, it closed the last 300 stores. From the stars to the stables in less than nine years.

To take away the turnover, in addition to the on demand TV, iTunes and Netflix are also included.

Today Netflix invoices over 8.8 billion dollars. In 2000 the CEO of Netflix met the CEO of BlockBuster to sell the company for 50 million dollars but the administrator of BlockBuster decided that it was a niche too small to be taken into consideration. A serious strategy error of the giant with little foresight in collaborations.

Today Netflix itself sees new competitors sprout and is already working on its business plan of the future. Tomorrow we will see!

This is when we notice the competitors we have around us too late.

In the changing market there are so many important factors, quality is the first of these

The evolution of the market is not just about competition but also factors such as quality, selling price, accessory services, without forgetting the attention and dedication to the customer.

The quality required can suddenly change for exogenous reasons. New standards arrive or regulations change. This can transform a warehouse into inventories of obsolete and unsellable products, eliminating their value.

Do you remember the TV market? For decades we have looked at immutable cathode screens except for the transition from black and white to color. These by now ancient family totems have evolved: from the cathode tube to the rear projection, then the plasma technology that anticipated the LED one up to the OLED one. This applies to receiver technology.

Data transmission has also played its part: there was a shift from analogue to digital and satellite. The technology in the transmission data changed: Terrestrial Digital (DTT), Internet TV (IPTV), in 2020 there will be the transition to the new DVB T2 Digital Terrestrial that will replace the old.

The sale of the same devices, if previously carried out in local stores and then in shopping centers, is now widely sold through virtual sales channels.

Satisfy the client or he will find those who satisfy him, in the price and in the service

The customer has changed completely. If you have a TV store and don't display the latest technology you are working on a perfect spot for competitors (virtual or not).

To satisfy the customer is always more complicated.

This applies to all sectors, not just TVs.

Either satisfy the customer or rest assured that he will find the one who satisfies him, starting from the price.

Examine yourself to see if you are in this situation. The price means a lot: if you have a generally low price compared to the competition you will be remembered for this.

If you have positioned yourself in the market as low cost suppliers it is almost impossible to change.

If you offer a high price, this requires service, attention and dedication to the customer.

Are you able to do this? Do you dedicate enough time to each customer?

The customer always wants the best. Rest assured that even if you are a customer of yours today, it is not necessarily tomorrow.

Attention and dedication to the customer for his satisfaction

In the past it was complicated by the consumer to know the market proposals for both products and services.

There was no widespread information.

The information asymmetry helped the suppliers, moreover the same were few and tied to the territorial area.

Today the suppliers are numerous and easily reachable thanks to the digital devices we use (PDAs, tablets, PCs, etc).

For some years now, thanks to the web, everything is much simpler and faster.

The information is widespread, even too much.

After eliminating the so-called Fake info, you can concentrate on a world of opportunities.

Your customer always does that and don't expect him to tell you.

If you don't dare to analyze all this, Nughe will take care of it.

We highlight strengths and weaknesses, strengths and weaknesses and also unprofessional approaches and we will help you in the development of your activities.




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