The Competition is not a Negative Factor to Start a Business on the Internet
February 5th, 2010
I believe that the more competition exists, the better. In fact, I have said in many opportunities: some of the things that I needed on the Internet is to have more competition. We can’t think that the competition is a negative factor to start a business on the internet.
Why? Because only in English, we are very few that we are dedicated to the theme of the Internet businesses, people have very little chance of choice. And if I have few competitors, at last I will have less strategic allies in which make promotions cross our different products or services.
The point that I want to reach is that the competition should not be a negative factor for thinking in starting a business on the Internet. In fact, when you are doing a prior analysis of market, trying to see if your product, its service or their enterprise, is going to have viability or not on the Internet, are that there is competition. In other words, that already exist other people that is providing solutions to the public goal to which you are running. And the best way to compete with these people or with its competition is to analyze exactly what the commercial proposition for them. Analyze exactly how they are selling, at what price they are selling, under what feature are selling and how are communicating with the target audience, do they have or have electronic newsletter? Do You Have tools that allow loyalty these potential customers? Or do not have?
Once you have collected all the intelligence of Marketing, and have succeeded in identifying what is its competence and what they are doing, is the ideal time for you between to differentiate themselves from them and to offer something better than what they are offering.
And not go to commit the mistake that many, and is differentiated only based on the price. In fact, some of my competitors believe that the best way to compete me is to compete with prices. I have a product that is on the subject X, they offer another product also on the same and the offer at half price, and believe that by selling at half price van to sell more, when this is a mistake. It is a mistake because if the quality of both products or the characteristics of both offers are not the same, obviously in latest I will end gaining myself. If my goal is to sell ten thousand dollars a month with a good product of $100, I know that I have to sell 100 products to win ten thousand dollars. While this person, would have to get 200 customers to make the same ten thousand dollars, or any figure of the we are talking about.
In a way that competition is not of prices, competition is of tenders, competition is in perceived value of your product, the difference is in the manner in which you packaged your product, in the manner in which you presents the information.
If this person is offering a digital book, you can offer the same -I am not saying that you copy their contents, or that steals the ideas to this person – but you generate a solution to the same problem in a different format. For example audio, for example videos, for example tele-seminars. For example, you can expand and give a better guarantee of satisfaction or return of the money. It is quite possible that its competitors, are not offering a warranty, you can provide a guarantee of 30, 60, 90 days, a year.
If the website of the other person is not very clear, it is not very easy to navigate, does not have a letter of sales hawker, you are responsible for differentiated in the manner in which is presenting the offer. Or, here is not a competition between products is not a competition among suppliers of solutions; it is a competition in achieving distinguished. But if you cannot differentiate, is not going to achieve positioned in the market. And if it cannot be positioning and is trying to sell cheap products, with good quality, regular or bad, because it is not going to get very far.
So, competition: healthy; many providers: healthy. Between more competitions, the more strategic alliances can do and more can make promotions crusades to dominate its market. The key is in the differentiation and positioning.
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