Connect with us

Business

Dealing with competition

Published

on

Competition is a certainty when you get into a business that meets customers’ needs. As soon as other entrepreneurs see the potential in that business they will immediately rush in to set their own businesses to service the same customers you are servicing or providing the same service in an area you are not yet present. Sometimes when business leaders hear the word competition it sends shivers down their spine.
They will find every way to bring the competition down. Other business leaders even go to the extent of trying to kill the competition by buying it out or taking legal action to make sure that they will never see the light of day.

What these leaders don’t realise is that competition is both good for your business and for the consumer.
If no one wants to start a business in your type of industry it might mean that it’s not profitable, unless if there is a huge barrier to entry which prevents others establishing their own businesses in that industry.

You need competition as an entrepreneur. You need to embrace competition and see it from a positive perspective. You learn a lot from your enemy.
Your competition can teach you the biggest lessons. Sun Tzu wrote in his book Art of War, “Keep your friends close and your enemies closer.”
You are in business to make money through your customers. Where there is stiff competition you will be forced to focus on keeping your key customers happy.

As one of several companies offering a similar product, you are forced to compete for customers. You have to ensure that you improve your customer service if you have to attract and retain customers. All this will benefit the customers as well, as they will receive excellent service.
In some cases you might have to change your strategy and adopt a focus strategy where you have to focus on your core customers.

Because of competition you have to pay attention to your target market and provide better service/product to your customers and keep the competition at bay.
Usually when your business is doing well, when sales are booming and you are making profits, you tend to give minimal attention your customers.
However when there is competition, you’ll pay much attention to your customers. Competition brings out the best in you! With competition breathing on your back you are kept on your toes and so you have to keep your product or service fresh, appealing and attractive to customers.

You also need to you work faster and smarter. You can’t remain uninterested when there is stiff competition otherwise you lose your customer.
Competition makes you creative and innovative at whatever you do. If you have to succeed in your industry then you better be innovative.
But if you’re the only player in your industry, there won’t be any urge to be creative. In a competitive market you have to do something unusual to succeed or else you become extinct. Healthy competition encourages change which will distinguish your company from others.
You have to do something that makes your company to stand out. Competition opens your mind and eyes to ideas. Without competition, you don’t have the motivation to go the extra-mile in delighting your customers.

However where there is competition and if you keep your eyes open to ideas, you can learn a lot from your competitor’s strength and weaknesses and capitalize on it to improve your product or service.
Complacency sets in without competition. The presence of competition shakes off complacency.
When you are consistently under pressure from competition, you and your management team will try to excel by pushing yourselves to the limit.
Nancy Pearcey an American evangelical author said “Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.”

Competition is a good teacher. Seeing what your competitors do well can teach you a lot about your business.
Your competitors will come up with certain business practices which will provide you with invaluable insight into the state of the market, and shows you what works and what doesn’t.

You can benchmark some of your activities with your competitors if they are industry leaders.
Without competition, you might not pay particular attention to your strengths and weaknesses. However stiff competition forces you to identify and study your strengths and weaknesses.

You will thus have to work hard on your weaknesses and exploit your strengths to outperform your competition.
If you have to succeed in a competitive environment you need to avoid your competitor’s strengths and find their greatest weaknesses and exploit it. You should never stop learning from your competition.

l Stewart Jakarasi is a business and financial strategist and a lecturer in business strategy and performance management.
He provides advisory and guidance on leadership, strategy and execution, preparation of business plans and on how to build and sustain high-performing organisations.

For assistance in implementing some of the concepts discussed in these articles or in strategic planning facilitation please contact him on the following contacts: sjakarasi@gmail.com or +266 62110062 or on WhatsApp +266 58881062

Continue Reading
Advertisement

Business

LEC to switch off households over debts

Published

on

MASERU – The Lesotho Electricity Company (LEC) will from Tuesday next week begin switching off clients who owe it money.

The LEC issued a seven-day ultimatum to all customers who owe it on Tuesday last week. The deadline ends on Monday.

It is expected that the LEC will begin switching off households that have defaulted.

The state-owned power company, however, is not going to touch any government department or business entities that owe it on grounds that they are in payment negotiations.

The LEC move comes barely two weeks after it cut electricity supplies to the Water and Sewerage Company (WASCO) thus causing it to fail to pump water to communities countrywide for more than two days.

The LEC says it is owed close to M200 million by government departments, businesses and individuals.

The LEC spokesman, Tšepang Ledia, told thepost that the government and the businesses will not have their electricity cut because they are in negotiations.

“We are in negotiations with the government and businesses and hopefully they will pay,” Ledia said.

“We advise the ordinary people to pay their debts before the 20th of March 2023 or else we cut the services,” he said.

The LEC says it is running short of funds for its daily operations.

In December last year the company increased power tariffs by 7.9 percent on both energy and maximum demand charges across all customer categories for the Financial Year 2022/23.

Last week the LEC boss, Mohato Seleke, said postpaid consumers and sundry debtors owe the company M169.4 million.

He said unless the debtors pay he will be unable to buy electricity from ’Muela Hydropower Project, Eskom in South Africa and Mozambique’s EDM.

This, he said, could cause serious load shedding in the country and could be devastating for businesses.

Seleke said the LEC spends M630 million monthly to buy electricity.

“If postpaid consumers do not settle their debts this could prevent the LEC from being able to buy electricity which can lead the country to encounter load-shedding,” Seleke said.

Seleke said collecting debt from government department ministries was a challenge as there is an understanding that since LEC is a state-owned company, it will continue supplying government agencies with electricity and they will settle their bills when they have funds to do so.

Seleke said the LEC has lost M21 million to vandalism during this financial year.

Relebohile Tšepe

Continue Reading

Business

Bumper payout for former mineworkers

Published

on

MASERU – AT least 11 316 current as well as former mine workers are set for a bumper payout after Tshiamiso Trust began disbursing the first billion Maloti to workers who are suffering from silicosis and tuberculosis.

The payment comes two years after Tshiamiso Trust began processing claims for the historical M5 billion settlement agreement between mineworkers and six gold mines in South Africa.

Speaking at the payment announcement in Maseru last week, the Trust’s CEO, Lusanda Jiya, said it has been two years since they officially began accepting claims.

“Our people come to work every day with the mission of impacting lives for the better, and the first billion rand paid out to over 11 000 families is just the beginning,” Jiya said.

“We know that there is no compensation that will ever be enough to undo the suffering endured by mine workers and their families,” he said.

“However, we are committed to deliver our mandate and ensure that every family that is eligible for compensation receives it.”

Jiya said the Trust is limited both in terms of the time in which they can operate, and the extent to which they can assist those seeking compensation.

Broadly speaking, the eligibility criteria include among others that the mineworker must have worked at one of the qualifying gold mines between March 12, 1965 and December 10, 2019.

Secondly, living mineworkers must have permanent lung damage from silicosis or TB and deceased mine workers representatives must have evidence that proves that they (the deceased) died from TB or Silicosis.

Tshiamiso Trust has a lifespan of 12 years, ending in February 2031.

Over 111 000 claims have been received to date, through offices in South Africa, Lesotho, Botswana, eSwatini, and Mozambique.

The Trust is working with stakeholders in these countries and others to mobilise its efforts and expand operations.

The history of silicosis in South Africa goes back to the late 1880’s when the first gold mines began operations.

The gold was stored and locked in quartz, a special rock that contains large amounts of silica.

Crystallised silica particles can cause serious respiratory damage if inhaled.

In the earlier days of gold mining, dust control, health and safety standards and the use of PPE (personal protective equipment) were not as advanced as they are today.

Tshiamiso Trust was established in 2020 to give effect to the settlement agreement reached between six mining companies.

The companies are African Rainbow Minerals, Anglo American South Africa, AngloGold Ashanti, Harmony Gold, Sibanye Stillwater and Gold Fields.

The settlement agreement was reached and made after a ruling by the Johannesburg High Court as a result of a historic class action by former and current mineworkers against the six gold mines.

Justice for Miners is a coalition of interested parties in the mining sector launched at the Nelson Mandela Foundation in Johannesburg in 2020.

The Johannesburg High Court approved the setting up of the Tshiamiso Trust to facilitate payment by the companies to affected miners.

Keith Chapatarongo

Continue Reading

Business

Farmers cry over cost of livestock feed

Published

on

MASERU – Lehlohonolo Mokhethi is a farmer who has been running a successful poultry business, thanks to a small loan he got from a local bank.

He now has 300 chickens.

He says his vision is to rear 5 000 chickens by 2025 and employ 30 youths. But he is now grappling with a new challenge: the ever increasing cost of chicken feed.

That is threatening the viability of his business.

“The biggest challenge is that food prices increase every day, feeding is expensive,” Mokhethi said.

“It is quite difficult to make profit in business if each and every day food prices increase. Today I am buying a bag of food with a certain amount then the next day the price has increased,” he says.

“Our customers fail dismally to understand that food has increased and the Chinese are taking our market because they sell at a low price thus I run at a loss.”

Last week, a top attorney in Maseru who is also a prominent farmer, Tiisetso Sello-Mafatle, called a meeting for farmers to discuss these challenges.

She says the government must regulate the prices of livestock feed.

That is critical if the farming business is to succeed, she says.

Attorney Sello-Mafatle says farmers must come up with a structure for livestock feed prices which they would present to the government for gazetting.

“We should state our regulations and give them to the government to make everything easy for both parties because we cannot wait for the government to make regulations for us,” Sello-Mafatle says.

She adds that “farmers should be bullish about what they want and never have fear endorsing new things”.

“I will not be challenged or cry (because of) what life throws at me but I will cry when things are not happening the right way,” she says.

Mafatle says farmers need to know who they are and know the capabilities they have.

“This will help a farmer in becoming the best in any field they are in once they are confident about themselves,” she says.

Karabo Lijo, another participant, said they have to influence the cost of inputs in agriculture, especially livestock feed.

“We have to go back to cost-price analysis where as farmers we are able to derive the selling price and the break-even point in our production,” Lijo said.

“We can also derive the stable or constant mark-ups on our products,” he said.

“We need to do research to increase the ability to produce byproducts which are likely to have the longest shelve life,” he said.

The meeting urged farmers to diversify their products by introducing such things as mushroom farming. They said mushrooms can grow very well in Lesotho due to its favourable climate.

The farmers also demanded that there should be regulations on how land can be sold or borrowed in Lesotho.

Tholoana Lesenya and Alice Samuel

Continue Reading
Advertisement
Advertisement

Trending