Why is it important for a company to understand its own business as well as competitors?
Answers:
well, i work at a music store(guitars, amps drums, etc... not CD's), and a big part of our staying in business is that we need to be as helpful to the customer as we can be. in this day and age, anyone can go online, find the lowest price for an item and with a few clicks they can have it sent to their doorstep. this means that to keep my store open, we need to have our prices matched to our online competition (as well as local competition) and be great with customers. that doesnt just mean saying hello to everyone, it means helping them pick out whats best for their needs without pushing them towards the most expensive items in the store, answering their questions and making sure they understand our products so that they can make a decision based on their needs (and explaining it in a thorough, but easy to understand way), and just plain being there when they need us. online stuff is convenient sometimes, but when you need something that same day, or if something stops working, or if you have an issue with a piece of gear, you need to be able to ask someone what the best way to fix the problem is.
beyond that, you need to make sure that you're making enough money to keep the doors open, lol.
To be aware is to be alive
The law of supply and demand will dictate where to price yourself competitively. If your pricing is to high your customers will go elsewhere... if too low you price yourself out of making a decent return on investment. By knowing your competition, you'll learn what you can do better to satisfy your customers and know your weaknresses on what is attracting your share of the market to them. It's also good to know competition if you intend on attracting key employees to know what kinds of salaries they are paying and you can also learn what suppliers are doing to benefit them instead of you. Whatever you do, be the best at it. The fewer the competition the better the profitability for your company so long as there is a market for the product and/or service you provide.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...