The Confrontation Has Begun
The confrontation has begun.
Earlier today, while I was surfing the web in a Spinelli Coffee cafe, I surfed to a competitor's website. I've heard rumblings in the grapevine that the new product will be launched in March.
A few days ago, I just commented to my staff regarding the competitor's impending launch of the product. I had hoped that the competition may have given up the launching of the new product because there were not much news heard after the initial rumblings. Part of me knew that it was wishful thinking. For some unknown reasons, my gut feeling knew that the competitor would not give up and would launch according to plan.
Maybe that's why I have not been myself. My wife had observed that I've been quieter and moodier. Perhaps, I had knew the coming of the inevitable.
When I surfed to the competitor's website, the new product was indeed released. When I was confronted by the new product, my heart sank. Not only that, my hands felt numb, blood was drained away from my head and I can feel a sick feeling in my heart. I needed to go through the competition's product specifications but I just couldn't concentrate. I mindlessly clicked on the pages but nothing much seemed to register in my brain.
When I started, I used to relish in uphill battles and I was able to stand on top of the world and shout out my war-cry. "Bring it on!" and I would thump on my chest, stamp my feet, wave my fists towards the heaven! The entrepreneurial fire would still burn brightly in a corner of my soul even though I feel the encroaching darkness when I was met with crushing obstacles and defeat. I wouldn't give up.
Now? What has happened? Have I become weak and soft? What changed?
It was easier when I had nothing to loose. When I started, the only things I lost were my time and opportunity costs. It was nothing tangible. Maybe, if I had failed then, the only thing I had to recover from was my bruised pride. I was only responsible for myself.
Today, after making headways in the industry and carved out my own niched market through sheer hard work and perseverance, I don't want to loose any part of it. I was the purple cow in the blue ocean. Now that I've introduced a new product over the initial 3 years of unimaginable struggles, I'm angry that anyone could just ride on my sacrifices and come into the market. It just seemed so unfair! When I see some of the clients who have signed-up for the new product, I felt further dejected. Some of these clients were some whom I had considered my closest allies and staunch supporters. Many of them I had helped when they went through tough periods. I was there cheering them on during their darkest period, urging them not to give up when the going was tough. Now that they have succeeded, they have gone on to support a competitor's product. I can't help it but it leaves a very bad taste in my mouth. It makes me feeling bitter about friendships. I am an idealist. I know. That's what my close friends tell me. Many have commented I'm an extinct species. I can't help it but that is me. When I give my loyalty, heart and soul, I never expect to be betrayed. Honestly, I've been disappointed again and again. Once I pick up my broken pieces, I trust people again. Once again, I've been betrayed. I wonder how many times I can be broken before I can no longer mend.
What if I can't survive this confrontation? It would be so unfair and I would be terribly angry. I would feel hurt too. Someone succeeded by building on the foundation I had established. This is the entrepreneurial part I hate, copy-cat competitions. But this is reality. I can lament; I can complain. But life goes on.
Probably I am afraid too.
I've my mum to take care. I'm now a father of two young boys. My wife works for me. I have staff. I'm now no longer responsible just for myself but many others. It is this burden that have brought upon new responsibilities. My decisions would no longer just affect me alone. I've more to lose now. That's why I have fear - the fear of failing others.
I need to dig deep. I need to find more strength.
Time to don my armour, unsheathe my broadsword and step into the battlefield. Time for resting is over.
8 comments:
Yoz, hang in there.
Competitors are always out there. They are born into this world to create competition for you. To push you on and force you to be better than who you are now. Don't fall flat when they start charging towards you. Show them who is the boss in your industry.
Jia You. We'll be supporting you morally.
Hey man, lets look at it these way. It is all the more that you need to 'chiong' ahead with all these people that you are taking care (parents, kids, wives.. just kidding).
There's pull and there's push. So dont let them push you then you start to push back. Push them double and let them panic, with no time to catch their breath also.
At times, it is not the executions nor the chain reactions. It is the idea behind it to blanket it all.
DK and I are more than willing to support you! :)
DK will do that with his body and I with my brain. ... ok ok, just to cheer you up. hee hee
Hehe, if you didn't feel a little scared after seeing some competition with similar offerings, you may be inhuman. ;-)
Jokes aside though, the answer for dealing with competition with similar products can be summed up in two words: Work Harder.
The only way to win back customers lost will be by pure merit. Forget about customer loyalty, they owe us nothing. We owe them nothing. Its an open, democratic market. Imagine if someone else came up with your product idea first and implemented some lock-in - how would you feel?
The answer is plain and simple - its time to hunker down and Work Harder.
Differentiate your product better - provide them with things that no one else can do because you were the one with the vision to create this product category in the first place. Nobody saw it first - you did. Use that same vision to see other things that no other person can see.
Then market it better. Sell it better. Provide better service. Compete on quality. Compete on value. Maybe even compete on price if need be.
Compete on every single front - no holds barred.
Its time for war.
Hey there, just my little bit of encouragement :
With new problems lies new opportunities. Most important is your perspective and the lens which you use to see your problems.
Continue to move up the value chain, this is business, your loyal customers switch prolly because your competitor seems to be providing more value.
Since you are the incumbent, the new kid on the block had a chance to study your model and deal a low blow by offering more value or lower pricing. But based on my own experience, it might just end up as a buzz/hype and this competitor might not survive.
Not too long ago a competitor opened up for one of my businesses and took away almost 50% of my business coz of his low pricing and all the hype around his new marketing. Most of my customers came back quite shortly after coz
- he couldn't deliver on his promises
- his model was not sustainable
- my customers missed us (seriously)
The whole experience taught me
- fads come and go, most important is to focus on the value I'm bringing to my customers
- to reflect hard on our own service delivery, what can we do better?
- also keep cost low and a strong cash pool in case you need to ride out tough times like this
A similar example like this that I can think of is PSA vs Tg Pelapas where SG lost a few major shipping lines. Major 'asses' were fried including a top minister were asked to retire early I heard. Although the competition was offering spanking new facilities and lower prices, soon most of the customers came flocking back to SG coz of the low efficiency there. They preferred our more expensive services ultimately coz we provided more value.
Sometimes if you face a dead end and you can't seem to find more value to deliver than your competitor, you might wanna think of an M&A - who else can make use of the base you've built over the years?
Maybe someone further up the value-chain might find your projects/contracts/customer base interesting?
Hope that helps :)
now that i'm someone's husband and looking forward to be someone's father soon in a big way, i have the same fears too.
Cobalt, Cia yu!!! :D
CP, you have described your feelings well that I really could feel it with you.
Dig a hole, dunk your head inside and lament over it, and after that, head up chin up chest up and AWAKEN again!!!
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