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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: Adam Wayland 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.

Comments [1]

Comment by Martin Norwood

Wednesday 7th February 2007

Duncan is so right. Many years ago the owner of a restaurant told me his philosophy regarding competition. He said "without competition there can be no appreciation" and I have remembered that for the last 25 years. If there is no yardstick against which to measure your performance, how can your customers know how good your business really is?

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