Q: I have had a phone shop for 6 years and have just found out that somebody is opening one directly next door. I feel he is capitalising on my last five year’s efforts. Is the competition likely to harm my business? I have spent thousands of pounds year after year on advertising and feel that I must now guard my business. Any suggestions?
Dec 01 2006
Answered by: Marc Barber Ask a question
In truth, it’s hard to say. In many cases where you have clusters of shops with similar offerings these become destinations for people because of the choice. Think Tottenham Court Road and Edgware Road in London for HiFi/electronics or Indian food in Brick Lane. If you are targeting exactly the same customers it seems strange that they have set up next door unless they feel they can provide a better service and/or price.
It’s obviously annoying, but in reality you need to feel your business is defendable from competition wherever it comes from. If you are competitive on price, product, service etc you will win at their expense and that will only help to attract people to your shop - if you can provide the better service, the competition next door could make your business shine - welcome the challenge.
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