Competition is good for your business in China

Competition is good for your business in China

In China, competition is tough, especially if you want to compete against the locals. Competition is composed of businesses that aim to dominate the market. As a result of which, many businesses have failed and turned bankrupt. But, competition is not always a bad thing. In fact, competition is the force that drives businesses to improve.

Competition reveals your weaknesses

COMPETITION is Good
COMPETITION is Good

Every business has its strengths and weaknesses. Competition lets you discover the parts of your business that you need to develop. After all, you cannot measure the strengths of your business until it is matched against another business in the same industry with the same target market.

 

Competition works towards improvement

It forces a business to improve. Many entrepreneurs have learned a lot of adjustments and discovered business ideas due to the hardships of competing with one another. When Jack Ma founded the Yellow Pages, which soon failed, he also learned something from it. So, when he put up the giant, Alibaba, he was more competent and knowledgeable on how to make a business work.

[caption id="attachment_990" align="alignleft" width="193"] China on the Rise[/caption]

Competition tests the heart of a true entrepreneur

When people found out that you can save more by manufacturing in China due to its low cost of labor and raw materials, foreign entrepreneurs hurried to build their empire in China; however, it was later proven that they could not successfully compete against the locals. This is because there are more complications involved when putting up foreign companies in China. They have to comply with the laws, rules, and pay more charges than the locals, such as registration and structure cost, among others. Needless to say, there is also the language barrier to deal with. For an ordinary entrepreneur, this may seem like an impossible competition to win, until Apple dominated the China market (marketrealist.com: Why Apple dominates the Chinese high-end smartphone market)

.You can learn from your competitors

Just as gold is tested by fire, your business is tested by your competitors. If you pay attention to your competitors, you might just learn the greatest lessons of managing a business, which you can also use to improve your current business or for your next business. The most successful entrepreneurs are highly competitive, and you cannot have such trait unless you dive into a tight competition and play the game. Competition makes you better.

Competition is good for the market

[caption id="attachment_991" align="alignright" width="300"]Zong Qinghou, Chairman and CEO of the Hangzhou Wahaha Group Zong Qinghou, Chairman and CEO of the Hangzhou Wahaha Group[/caption]

Competition drives a business to excel, so that it can stay in the game. This is good for the market because it gives the people better products and services. In China, competition is really tight. You will surely learn a lot. And the most successful businesses are those that have sincerely served the people (the market). Unfortunately, many entrepreneurs approach business in a wrong spirit: only to make profit. Competition teaches everyone that a business only finds its meaning when it helps and serves the people. You do not just offer a product; you offer a good and useful product. As according to Zong Qinghou, CEO of Wa haha, which is one of the four largest beverage producers in the world, “Quality, taste and virtue make a brand.”

Competition is good for you

If you can focus calmly and shift your attention to your competitors, you can learn the ins and outs of business. It strengthens your entrepreneurial spirit and makes every taste of success more meaningful.

Conclusion

Competition is a natural part of business, regardless whether you put up a business in China or anywhere else on the planet. There is simply no way to escape it. As what Zong Qinghou once said, ”It is impossible to avoid competition for it’s everywhere in the market; aren’t you seeking death if you really try to avoid competition.” Thus, you have to embrace it. Learn, develop, and succeed.

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