Four Ways Competitors Can Destroy Your Business
It’s a competitive world, and everyone is working hard to get ahead. These things get particularly ugly when you are running a business. One new company can damage the revenue of all other businesses in that industry. This is why monopolies don’t let anyone make their place. First, they try to destroy you. If they are unable to do that, they try to buy you off.
While a buy-off might not sound like a bad deal if you are paid well, this could take away your dream business. Either way, you have to first survive their vicious attacks once you make a name for yourself in the market. Here are some of the ways your powerful competitors can use to destroy your business.
They Can Launch a Cyber Attack
Cyber-attacks are more common than ever today. Most companies store their data online and use the same medium for communication. It could cause a lot of business damage if you don’t have the internet for one day. After all, it’s the most efficient, secure, and fastest way.
While it’s safer to store your data in a soft copy, it also opens doors to many other threats. Your competitors can take the services of a hacker to get access to your resources. A simpler and easier method is the use of ransomware. They launch a virus to encrypt all your data and then demand a heavy ransom to get it back. A small business has a short budget and can’t afford such losses and ransoms.
Try to Buy Off Your Company
One very common method to destroy a business is to buy it off at a cheap rate. Monopolies have large budgets, and it’s not very difficult for them to buy off businesses. They will try to intimidate you and offer you less than the worth of your company. Most of you who get scared will give up right away.
They are scared that this monopoly has the power to beat us anyway, so it’s better to just sell out. One should remember that if they weren’t scared, they wouldn’t be offering you any money. They are giving you money for goodwill. They are using it as bait to get rid of you.
Sell at a Lower Price
Companies that have been operating for many years have a stable position and a large revenue. They have great shares in the market, and they are generating enough revenue to easily top off any startup. This is the reason why they can sell their products or services at a very low price. There have been many cases where monopolies started selling at a price lower than the production cost just to get their competitors out of business.
One very popular example is the battle of Amazon and Diapers.com.
Amazon first tried to buy it, but executives of Diapers didn’t give up. Next, Amazon started selling diapers at a price that its competitor just couldn’t match. This ended all sales of Daipers.com, and they eventually had to sell at a lower price than before as they were going in a loss.
Create Scandals About Your Business
Many companies start rumors about their competitors. Even if the rumors are stupid, they are enough to destroy sales of any company. Most people who listen to rumors don’t do any further research and just do what is safe.
They don’t care if the rumor about you is true or not. Their only concern is good quality and quantity at a good rate. They start to have doubts about your business, and they don’t have the time to dig into rumors.