(Abstract) 100 Great Business philosophy: Philosophy 19: Self-Competition

Idea 19 self-Competition

Rather than letting other companies share your market, it is better to introduce new products to compete with your existing products. It sounds like suicide, but if it is handled smartly, it can put you at the forefront and lead in the competition.

Concept

When the market for a product or service is limited, any new competitor may compete for the market. The possible solution to this situation is self-competition-developing new products to compete with existing products. From Starbucks coffee chains to chip maker intel, this strategy is widely used by many companies.

It is widely known that Starbucks opens a new chain store every few minutes, which shows it has a strong desire to force its competitors to leave nowhere to go. Although the result is that each branch is competing for a limited number of customers, Starbucks believes that this is better than other companies that may lead the market, such as Costa Coffee) caff é Nero.

Other well-known examples of self-competition include Apple, Intel, Microsoft, and other computer hardware and software manufacturers. Through frequent upgrades to their products (that is, faster computers or more powerful anti-virus software), they not only keep cutting-edge technologies in this field, it also attracts customers to buy new products and makes it difficult for their competitors to fill their markets. In a market with limited and unpredictable loyalty, this approach works very well (for example, Starbucks may think that anyone who wants to drink coffee can drink coffee everywhere ). This always works when people want to keep up with the times for whatever reason-for example, if they want to keep up with the latest technological developments.

Practical application highlights

§ Judge the market situation and determine when to update a specific product. R & D of new products consumes both time and money-if the existing products are very profitable and cannot be threatened by competitors, they will be released to the market when necessary.

§ Your competitors are expected to update your product immediately when they launch a product that is likely to be very popular on the market.

§ When sales are stagnant, replacing your existing old products with more advanced products may greatly stimulate overall sales.

§ Do not be afraid to compete with yourself. Although it may seem a little scared when I first saw my old product lose the market, it should be seen as a positive response to the brutal and changing modern market. In addition, it will force you to innovate and overcome complacency.

(Abstract) 100 Great Business philosophy: Philosophy 19: Self-Competition