As a developing nation and a young country, I had decided to take this topic as a lot and lot of new businesses and startups are emerging in the Indian economy, and there is always a factor of competition and monopoly
So, Is it good to have competition or there is some game that is not shown yet
Competition and Factors Affecting It
There is no such thing as competition is good or bad, it’s all about if your business is getting benefited from it or not. A very common example is of opening a restaurant, there are many factors that play a major role in this, geographic location, type of restaurant, type of people living there and many more. Maybe some internal factors too, like the communication skills of staff, prices vs quality of food provided, waiting time and much more, but there is one thing i.e., common in all the businesses that they don’t want competition around or we can say tries to eliminate it.
A Famous Example and A Common Mistake
In restaurant business the same rule applies, people who open a restaurant on a busy road where there are restaurants already, they have to face more competition and then more struggle, exceptions can be a franchise – as the brand name is already there. A better decision is try to open where there is zero competition or maybe try to have some uniqueness, now from uniqueness I don’t mean opening a hard-core non-veg restrudent in front of temple or opening a fast food shop in front of gym that’s bullshit, what I meant is you can observe where there is room for a particular niche, for example people want japanese food but there is no japanese restaurant near, then there is a fair chance you came across making a good profit and ROI.
Do You Want to Split the Profit
Don’t try to copy others, you will only split the profits in that business. When flipkart is already in India and amazon came up it just increased the competition between them and split the profits, same goes with Ola and Uber, and same with streaming services, Netflix, Prime, Sling TV, Acorn TV and many more. Whenever you enter a business where you don’t have any uniqueness, you only make it harder for other businesses to stay,
but there is one advantage of this, the customers have the option to choose and that’s a very good thing as it removes the monopoly and also quality improves continuously. A very good example is of delivery services or can say logistic companies, the 3 main giants are DHL, FedEx, and UPS but more and more companies are getting in this niche with advancements to decrease the transportation price and time, again it’s good for customers but definitely not for companies.
Yippee I got an iPhone
There is a company I like to talk about, Apple. We all know it, mostly for their iPhones and Mac OS. Where other companies try to compete with other phones in the market, mainly in terms of specification and prices, Apple just removes the head-phone jack and fingerprint, and that too in their flagship phones. It does not represent arrogance or monopoly, but it shows the ability to take a risky decision to adapt the new technology and discard the previous one if there is replacement for that.
Conclusion
At the last I will say you don’t have to fear competition if you are having some sort of uniqueness or may be a completely new product then you are already way above the competition, but if you don’t have that then your business, execution skills and smart decisions come in. Most of the businesses are not very unique; it’s all about the execution and taking risks in making unconventional decisions.