Three Key Ways Your Internet Speed Affects Your Business


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Introduction; this research is outline the various factors of business environment to achieve their business objective through main three prospects, clearly understand and knowledge about the useful elements. These three broad categories are evaluating various performance areas for education institute to find an accurate place in changing environment without interrupting existing students.

The methodology developed in this context to resolving strategic decision dilemma involving making choices amongst competitive alternative.

Operations Management:

A framework for analysing operations management within the institute and explain how operations management supports business activities.

A framework for analysing operations management within a business;

'Operations management is a multi-disciplinary field that focusing on manage all the aspects of the business’s operations. And a typical organisation has integrated with many operational activities wrote by Howard J. Weiss and Mark E. Gershon in Production and Operations Management'. And two very important part of the organisation is to selling product and services. So operation management related with actions to providing service and products.

It is related and necessary to planning and controlling to the terms of products and services. All the aspects of operational management that are include understanding products and services, location and size with the respect of customer need and supply; Techniques and equipments, customers and clients and marketing strategy to attract or produce goods and services, including workforce planning, training and quality.

Main operation function is with the latest technology and techniques improve productivities and reduce cost and flexibly meet the customer need in changing environment. In an organisation they are working to develop the plan and strategy to cope with new challenges and opportunities to meet in particular environment. It has design the system which is operate through a capable system that producing quality products and services according to customer demand and within the time frame.

Key functions of operation management;

Designing; designing is start with the product development, including the various features and characteristics of the products to be sold. It is closely assessed with the customer expectations and grown product design in detail. Maintain the layout with the full facilities, machineries to use in production, in system design information system is very important to improve the performance through monitor and controlling.

Planning; system planning is describe as how management utilize the available resources to cope with the various situation. Planning process is helps organisation to cope with changing environment situation, for instance may be with changing in demand will be increase or decrease.

Managing: Team work is very important and necessary part of successful operations. They are managing the system through employee encouragement which is effective in improvement and better performance. It has including training, leadership and culture.

Coordinating; this is a very important stage and way of interrelating things by various part of the work. It is coordinating between various roles and responsibilities of the job with staff and operational team. This is a two type of integration reporting to your manager as vertical form and horizontal reporting is within your team members and colleagues.

Framework for operational management:

The framework is a way to present thinking about the relationship between the main function which are including in service operation;

By the external environment is where the customers and competitors are there. Within the context of the external environment, management’s task is to understand the need of the customer and what they want and sizing up the opportunity and threats by competitors. Define the product and compare with the similar product, segmenting market, develop a product concept and marketing. This is particular strategic approach to provide unique quality of the product in high competitive environment.

Internal environment in this case no external contact with any customer prospective but analyzes all the internal recourses which are involve in the development of the product. It is including of analyze information, done paperwork and planning HR, designing system to efficiently deliver services, operation control and infrastructure. Soft supply and demand is a important task in well control the internal environment of service operation.

The links between strategy and operational performance targets and identify the possible conflict between different performance targets.

Business strategy is a thought of the further planning of achieve future goals. It is a set of long-term direction to make sure of the success of the organisation. Business strategy is meaning full fact that are really effective if perform operationally. Operations are strategically very important, and it is part of run day to day activity within the operations.

Relationship between operations and business strategy and key to achieve long-term success and even helps to survive. Success of the organisation is only possible if short term activities are run along with long-term strategic objective and contribute to competitive advantages. Relationship between operations and other business activities are slightly important. The main objectives of operations are to produce goods and services expecting by customers while managing resources effectively as possible.

It is leading to the conflicts within the business organisation. Conflicts between the marketing and operation department because of the desire of marketing to make sure the operations are concentrate on services and quality to satisfy customers. This is a look like as desirable, which marketing will usually want from operational department and be able to meet the required standard of the product and need of customer in any condition.

Conflicts between various departments (finance, accounting) want from operations, efficiently manage the recourses. And conflicts issues with HR are on recruitment, selection and training, managing and rewarding to those are recruited within the operations. For instance operational manager need wide policies to meet the required need of the customers and that move will be refusing by HR managers.

Mainly the conflicts are arising by the various departments’ different aims; resolve these conflicts need clear understanding between both sides and cooperation between them. Yes, it is very important for the success of the organisations through training assessment, designing, planning and implementing. So these conflicts will resolve through the deep consideration or analyze the causes or reason behind; can be achieve through the;

Management resisting release their staff for cope with the day to day work demands.

Short- term and long term performance out look for HR department

Hr budgets are always in trouble when the profits coming under pressure.

What key performance indicators are and how they relate to operations management.

Techniques to evaluate performances; these techniques are very important to the growth and improvement of the organization, also focus on the improvement on the productivity, effectively and efficiently. And basically a firm’s performance measure techniques are following the five performance objectives to do better. Slack et al. (2004)

1 Cost: will be low.

2 Quality: best quality of the product without any error.

3 Speed: quick response according to the demands, reach with effective time scale.

4 Dependability: promising to the customer by deliver product and services

5 Flexibility: able to change operations according to nature of the organization.

Key performance techniques; there are three main techniques to evaluate business performance, motive of all the techniques to increase performance of the organization and achieve objectives.

Balanced Scorecard: this technique is originated by Dr. Kaplan & David Norton. This technique is very helpful to manager to more focus on balanced view the organisation performance. There is four department they are focusing on; customers prospective, internal; business process, finance and learning and growth to monitor the performance or progress towards organisational objectives.

Benchmarking: this technique is using measurement techniques to compare service and product with other organisation and generate evolution to perform best as possible. And identify area of improvement. Benchmarking is often used as quality programme. There is two type s of benchmarking marking is available internal and external. For instance the benchmarking standard is very useful to evaluate performance of hospital and universities etc. this is not overall process assured to improve performance relatively the outcome form bench marks comparison can be used in more overall process.

Critical success factor: Critical Success Factors are linked with the mission and strategic objectives of the organisation. But the goal and mission are focused on the aim and what they are achieved, these factors are focus on the most importantly with what is achieved and what they are looking to achieve high quality.

The role of Key Performance Indicators;

KPI is also known as key success indicators. And it is helpful to measure company progress towards the setting goal and set objectives as well. When an organization has analyzed their mission, and indentifies about stakeholders and defines the goals, it helps organizations to measure their development.

KPI are scientific measurements, agreed to in advance, this also reflect in the organizational CS factors. This will be differing within the different organization structure. All business organization has their performance indicators or KPI that showing the percentage income coming from return customers.

If a school wants to see their performance indicators they are looking on the graduation rates or pass percentage of the students.

Customer Service divisions can have its Key Performance Indicators, according to that how many calls they have answered within the minutes.

For a social service organization or non-profit organization is just rely on to check their performance on number customer they attained in a year.

KPI usually are long-term planning of strategy or consideration. The goals of specific change in KPI have change by the change of the organisational goal change to achieving them.

The concept of value chain as a means of identifying and creating competitive advantage.

1. Concept of value chain has introduced by Porter (1985), this is basic tool of examine the functions of company performance and their relations with the view to identify the sources of competitive advantages. It takes apart the actions of the firm to in order flow of activities and also uses to analyze the set up the importance of the various activities which are helping to produce or deliver the final product so help to identify core and non-core business activities.

Generally a company develops their competitive advantages and create shareholder value; it is very helpful to business through a separate system into a variety of value generating actions called value chain. This is a way in which value chain activities are performed which is helpful to determine the cost and affects the profits, this tool is very helpful to understand the sources of value by the organisation.

2. Above three qualities improvement schemes or techniques are helps to achieve competitive advantages over their competitors;

ISO9000: ISO 9000 is a tool which has helps organisation to make sure that processes and documentation able those to meet their customers need. It could be a framework to help assess your organization’s performance, both in their results and the processes need to achieve them, and where the organisation to improvement needed. This standard is relating to the employee development and the way to improve performance of the organisation.

Charter mark: Charter mark award services assessing and providing excellent standard of services with the recognition of the public feedbacks. Every applicant gets an expert independent assessment and detailed feedback on how to improve their products and services standard to gain access. This service is focusing on outcome for the customers. This is a service concentrates on the quality of the services or goods they have actually received. This service is flexible and easily understandable to all sizes of public sector organisation which is leading to delivering the services too directly to public.

Business Excellence Model: The Business Excellence Model is referring to the framework for assessing and then regularly improves the performance of an organization across with all variety of their activities. It was developed by the European Foundation for Quality Management (EFQM) and 200 companies across Europe, and it is widely used by private and public sector organizations of all sizes to give impressive services and quality.

So within achieving the standard of the product quality and services according to the quality standard schemes a company can create competitive advantages. With analyze of the quality standards a firm has the chance to produce better product. A competitive advantage might be accomplished by reconfiguring the value chain to provide low cost or better differentiation. This is a useful tool to analyze the firm’s core competencies and achieve the standards;

Cost advantage: it better understands costs and pushes them out of the value-adding activities.

Differentiation: it is focusing on those activities related with core competencies and ability to perform them better than competitors.

Strategic decision- making:

The models for strategic information systems

An information system is that can enables a business to consider a strategic information system. A strategic information system is defined as systems that creates or develop the company's competitive advantage by basically change how business is performing.

'Strategic information systems are conventional informational systems used in innovative ways. For the most part, they are transaction based, simple, evolve over time, and solve problems (Chalero 2000)'.

'Strategic information systems change the goals, operations, products, services, or environmental relationships of organizations to help them gain an edge over competitors'.

There are some key features of information systems:

1) DSS that allow to cultivate a strategic advance to support Information Systems (IS) or (IT) with the business strategy of the organisation.

2) Mainly project resource planning key to linkage the business procedure to meet the objectives for the optimize the project resources

3) Database systems with the 'data mining' capability to formulate the superlative utilize of available business information for permotion, marketing, production and innovation. The SIS systems also help classification of the data collection strategies to help optimize database marketing opportunity.

4) The real-time information Systems that intend to maintain a rapid-response and the quality indicators.

How information-based services contribute to business functions.

Strategic evaluation of planning tools

There are various techniques or tools are available which those helpful in decision making process. 'Strategic planning is a process that results in decisions and actions to guide what your program is, what it does, and why it does it (Bryson, 2004)'.

'This is a practical process which is helps to adopt number of activities, products and services need to analysis for the successful planning. It is helps to improve project performance, and show understanding with program context, stakeholder’s communication and decision making (Bryson, 2004; Office for Victims of Crime)'.

It is very complex but very important for the future prospective. So let’s we use PEST to analysis future planning; it is effective;

Political factors: these factors are effecting in the way through government policies like tax changes, which product and services are good for local peoples, it could be effect on the area of education of the employees and health and safety and quality product and according to the government policies can effected many way.

Economic factors: in economical factors referring to interest rates, changing in taxation can be economic growth, inflations and exchange rate too. These changes are making impact on every organisation. For example:

Higher interest rates may discourage investment because it costs more to borrow.

A strong currency may make exporting more difficult because it may increase the price in as conditions of foreign currency.

Inflation can increase higher wage demands from employees and it will affect costs.

Higher national income growth can boost demand for a firm's products.

Social factors: social factors referring to society, society of UK is ageing then this has cause of increasing the cost that is committed to pension payments for their employees. That is because the employees are living long, that’s why this factor is affecting the strategy of the company. It could be the impact on the demand and supply.

Technological factors: technology is a big factor should affect a company’s strategic planning. New technology is a factor we can not run a company without latest technology. This is a factor referring to the latest new technologies create new products and new processes. In these days every company wants to get the latest things to compete their competitor that’s why better technology affects every company. Company should be considering on technological factor and within the latest techniques an organisation improves productivity and quality.

That’s why these factors are highly effective in strategic planning.

Information-based services contribute to business functions;

Role of information system is to provide information to the management, with specified knowledge with will enable to decision making and controlling on various activities. Information system is group of interrelated process which is effectively collect information that, output, input, storing, controlling etc, that convert this information in effective knowledge which beneficial in forecasting, future planning, decision making and operational functions.

We can divide information’s system into two various categories which are very helpful in decision making and day to day activities. These two are OIS operational information system and MIS management information system. Both techniques are helping in operational and managerial decision making process.

Detailed justification for the need to monitor the business environment.

Monitoring business environment;

Business monitoring is a process to measure business performance, and monitor business completion time, business problem, it is provide information to increase or improve efficiency and productivity and changing business competitive advantages.

'SWOT analysis is perfect examples of competitive advantages; SWOT analysis describes in four particular factors to achieve competitive advantages; strengths, weaknesses, opportunities, threats. It is analysis organizations internal and external environment; (Wheelen, Hunger pg 107)'. SWOT is very strong and powerful tool to develop a business strategy against environmental indicators. SWOT is helping in identifying issues in the environment (Marketing and Its Environment, pg 440'.

Strength: it referred as strength of the company for example brand name, and goodwill of the company etc. it shows the marketing value of the organisation.

Financial strength: it means company have fully charged with the financial resources. And company has a strong credit history.

HRM: it means company has good efficient qualified and trained work force. Good employee relationship.

Weaknesses: if the company have limited resources of distribution channels then it is drawback for company. They are not able to reach any of their outlets on time and left behind. Other one is financial resources if the company have poor relations with their financers then it will big blow for the company and they lost or will lose customers. Third if their employees are not satisfied with the company then it is because of the ineffective internal environment.

Those internal factors are fulfilling each other. If the any company wants success they need to balance those factors. These factors are unavoidable.

Opportunity: it means if company have strong brand name they can establish presence any where to grab the opportunity. They can get good results and find exact solution for the threats.

Threats: Major threats from the competitors, if the company have strong name and fame it is very tuff for any competitor to compete on the basis of branding. Some changes like taxation introduce in your service products has increase the price of the product. It will effect some time but company find some alternative for these changes.

Those external factors may effect on your environments. Proper analysis of internal and external environment is helping company to monitor market environment to compete the edge of competitive environment.

The reliability of quantitative techniques in strategic decision-making.

Quantitative approaches;

Quantitative approaches are very helpful in decision making and problem solving process. These techniques are;

Liner programming; liner programming and mathematically techniques related to most favorable use of complex sources. It is might be use maximize and minimize a goal in the restrictions and through a controlled process.

'A linear inequality is simply a mathematical statement to the effect that some linear combination is greater or less than some constant number. An objective function means that each unit of value measured by the function is the direct proportional result of assigning a certain value to a control variable (Kwak & Schniederjans, 1982)'.

Network Models: this is a managerial technique which follows through an important program and evaluate and monitor the progress towards achieve goal. In network analysis every activity has an important part of the process and related to other parts. This is works through well structured steps within the time limits also provide a clear presentation of the current situation. This model may be considered toward comply with the information about a specific property.

Scenario modeling: there is various situation occurred in more often in business environment. So every business organization finds them in dynamic business environment. Here is some model and methods are like 'sensitivity analysis, stability analysis, what-if analysis, scenario modeling, etc'.

All these various approaches are effective in decision making process. These techniques are very important for operational decisions, and managers are used both techniques qualitative and quantitative approaches.

Decision-making models and the strategic models which the organization could follow.

Compare and contrast decision-making theory

We can distinguish decision making models in two categories one is rational and intuitive.

Rational decision making model is that which provide a structured and step by step approach to making decision. This approach is helps to make sure discipline and consistency in decision making. This is a logically approach to making decision. To follow this approach has sequences of steps to identify problem and find the solution through a systematic way to end and decision made. Steps;

Find opportunity/ problem

Collect information


Options and alternatives

Action plan leading to decision making

Intuitive: this model is based only on just your intuition. It is just like what your mind says about or you determine about the situation not factual but according to your feeling. It is not analysis the situation but quick responding on to the mysticism not on logic or in other words it’s just supposed not on factual based. Steps; no way

It is factual so a company obviously use rational model of decision making to survive in market. Managers need to make decisions at all levels within an organisation, from day-to-day operational decisions, to planning how products and services can be developed in line with customer needs, through to strategic decisions that influence the long-term success of the organisation.

Explain why businesses need to manage information and systems

Information system is very important for business success. With a specific information technology structure or without, no business unit can survive in highly competitive environment. Here is we are analysis some key areas of information system;

Operational excellence; with the specific knowledge a business can achieve their operations through effectively and efficiently. To achieve their operations; higher efficiency, productivity and organisational goal, information system is very important tool.

New product; information system is very useful tool for launching a product and services, and good for new firms. A strategic approach helps to maintain a new business.

Customer prospective; a business organisation can survive when their customers are happy and giving repeat business, this is helps to improve revenue and profits. For example if a person or customer satisfied with the services then them purchasing more.

Information system helps in making decision, exact analysis will helps to maintain performance and achieve business goal.

Competitive advantages; above all these business objectives if an organisation achieved then they a ready achieved the required gain of competitive advantages. It is make you better than your competitors.

Levels of Decision-Making

Levels of Decision-making

The Decision-Making Process

The Decision-making process

On top of is a normative model, It’s showing how a business decision made. And model showed that how a decision made without mention a statement on good or bad.

Linear programming; this model helps to minimize and maximize the production and fully control over production costs according to the given information.

Finance for managers:

Using the information in the table below produce a cash budget for the Institute for the first six months of 2013.


Cash budget January to June 2013 (£000)















Credit sales















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Capital Exp.










Net cash flaw







Opening balance





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Closing balance







You should now analyze the figures from the cash budget and advise the Institute as to what they should do in the light of this budget.

This is method to check your firms financial health, it is run through how money getting in or out. The goal is to maintain the finance for business by month to month operations. This type of analysis is known as cash budget.

Mainly cash budget have 2 steps of one is cash inflow and other is cash outflow. Your cash inflow will be greater than cash outflow. That means you have enough and sufficient funds for run your business. So lets we analysis the cash budget of Institute;

For the first month of the cash budget is start with (0) opening balance but at the end the month situation is changed and after first month the balance is negative and next months opening balance is negative. But this month net cash flow is positive but because OP balances of the month was negative so CL balance still negative and company haven’t enough money to manage with the debts.

From Jan to June company inflow is not very good and outflow going out of control. And will company not able to repay their loan. At the end of cash budget is negative and forecasting. So company records negative cash flow it means company a lots of expenses each month and company struggling. This is not necessary a company always make money are make profit but some time companies show negative cash budget but actually they are making money. Of better concern are fundamental transform in cash flow among time, or a reliable and expanded period of negative cash flow, it advising that a company may exceed the limit.

Describe cost-volume-profit analysis formula and explain the limitations and assumptions of such.

Cost-volume-profit analysis is a way to check the various changes in activities; like sales revenue, exp, and net profit. CVP is very helpful to managers to decision making and they can make decisions over pricing, production units, incurring cost etc. Department of cost accounting are supplies the data and information or analysis called as CVP that helps managers.

CVP analysis is one of the most important and powerful tools that are helps managers to understand the relationship between costs, volume, profit by focusing on interactions among the following;


Product Volume

Variable cost per unit

Total fixed cost

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Sold product

CVP analysis is very helps to managers to making various decisions related to cost, volume and profits, these decisions are related with pricing policy, product manufacture, effective marketing strategy etc.

'Contribution Margin and Basics of CVP Analysis

Difference Between Gross Margin and Contribution Margin

Cost Volume Profit (CVP) Relationship in Graphic Form

Contribution Margin Ratio (CM Ratio)

Importance of Contribution Margin'

Some of the CVP analysis assumptions are following;

Stable selling price or not changeable either when product volume change.

Costs are divided accurately between fixed and variable cost.

Sales mix is stable in multi- product companies.

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Inventories are not changed in manufacturing companies, and the number of produced goods and sales units are the same.

There are some limitations with cost-volume –profit;

These analysis is very beneficial but have some limitations are it is very limited information provider in multi product operations. Most of the analysis are taken by business managers and those are used the information approach is just for one product based. 'Northern Arizona University notes that multi-product businesses, such as restaurants, can have a difficult time with CVP analysis because menu items, for instance, are likely to have many variable cost ratios'. It is makes exception for CVP analysis and has difficulty because it is done for every single product.

Discuss the relationship between long and short-term decision-making in the context of investment appraisal.

Time value for money:

Today’s business environment is unpredictable and will change suddenly; there is lots of pressure on companies to respond quickly in changing conditions. Industry structure will be rethinking when the new needs occurred for new innovation within limited time.

'The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received'.

There is various techniques are available to analysis time values for money;

The Payback Period technique; PP technique is useful to find the time period to compensate to their money on their investment. These techniques are very helpful to judge the project period to getting compensate on your investment and the fastest returning is favored. As the better analysis of the techniques many companies will use PP to accept for many short term project and they are leaving long- lived projects. But the technique is unable to incorporate risk to appraisal and ignorance of time value for money made this technique unsuitable for project evaluation. And project investments are not only reliable only on PP calculation.

Accounting Rate of Return (ARR); this technique is more suitable than PP because of it is used total time (lifecycle) period are considered. ARR defined as the ratio of investment and total money gain. This is very useful techniques for IBM researchers for the service environment, but it is same like PP not considered or not taken time value for money taken into account. Risk is involved when making appraisal and adjusting the services. But this technique is not very useful to handle exclusive projects.

Companies used various techniques to evaluate the investment decision. It is Net present value NPV, internal rate of return, and pay back period. The NPV simply present the present value of the future cash flow and the alternative is offer highest NPV. And the IRR is shows the return on capital investment and compare it with required return for investor to decision making.

Evaluate the use and limitations of ratios in financial decision-making and examine how comparison of past figures, planned performance and competitor performance can be used as benchmarking.

'Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity, profitability, and solvency by cliffs notes article'.

Limitations of Financial Ratios in decision making;

Ratio analysis is practically used in business practices. Ratio analysis is widely used in practice in business. It is encouraging a systematic approach to analyzing business performance. But there is some limitations are of Ratio analysis;

Ratios are only addressing with numbers but they don’t address issues like quality of product or customer services, employee motivation etc.

Ratio analysis is only based on the past figures not future.

This is useful to compare long time performances between businesses, may this information will not often available

Some time the firms are showing these ratios more attractive or adopt (almost delay their payments to the creditors to show positive impact on their cash flows) fake figures.

Ratio analysis show a business performance is good in some ratios or some are bad so it is not a clear indication whether a company is good or bad.

In general, ratio analysis conducted in a mechanical, unthinking manner is dangerous. On the other hand, if used intelligently, ratio analysis can provide insightful information.



Companies are used benchmarking as idea of improving process. It is improving quality, improve performance through motivate staff and gain competitive advantages; financial ratios are very useful when compare against the following;

1.The Industry norm - This is very useful techniques to comparison. 'Analysts will typically look for companies within the same industry and develop an industry average, which they will compare to the company they are evaluating. Ratios per industry are also provided by Bloomberg and the S&P'. All these sources are good for normal information of the company. These are good sources of general industry information. But there is lots of companies in same field and ratio analysis can distort. For example food industry ratio index, there are many food industries are in market some are make food and some are distributed. That’s why the ratio is distorted because one of them is capital- intensive business and other one are not. That’s why it is better to use cross functional analysis which is best to analysis.

2. Aggregate economy – this is very important to analysis ratios over economic cycle of the company. It is helps others to know how company perform in changing conditions such as recessions.

3. The company's past performance – 'This is a very common analysis. It is similar to a time-series analysis, which looks mostly for trends in ratios'.

Conclusion; as summarizing this assignment, in this essay we are analysis the three very important areas those very helpful to achieve business objectives through using various techniques are helping in companies operations to improve company performances, and identify the various key areas of performance which is very effective to develop a new or existing organisation. We are research about information system is effective in decision making and have a big impact through various useful ways, Chalero 2000). For strategic decision making process these information are important and helping through changing environmental needs. With theory of (Bryson 2004) planning, controlling and, managing for future competition.

At the end we analysis the financial resources, which is one of the important factor to influence business organisations and not any business are possible without funding. We analysis various statements are effective to forecasting future and helpful to survive a business, ratio analysis which is belongs to firms financial position or effective to attract investors in projects. Overly these three main performing areas are interrelated and examine the factors that promote and limit the achievement of change objectives for the dynamic environment within which organisations operate.

Opinions expressed by Entrepreneur contributors are their own.

Successful entrepreneurs thrive under competitive pressures. Instead of viewing competition as an obstacle, they see it as an opportunity.

Dharmesh Shah, co-founder and CTO of HubSpot, writes, “You are often your biggest competitor. You should not completely ignore your competition, but the biggest battle happens inside of the four walls of your startup's office. Startups come down to pure execution of a strategy on a daily basis and maintaining the faith for the long haul. Most startups don't lose to competition, but because they lose the will to fight.”

Essentially, you are your own biggest threat.

Competition is good. In fact, a healthy rivalry challenges you to work smarter with the resources you have. To do so, leverage your team’s unique talents and build a business competitors wouldn’t dare challenge. Even if other companies in your industry attempt to undercut your prices and steal your customers, think positively about ways they can help your startup grow.

1. Avoiding complacency.

Sole suppliers in an industry quickly stop innovating simply because they no longer have any need to. Sadly, they unknowingly commit to maintaining the status quo. Competitors have a habit of keeping you on your toes.

2. Building brand clout.

Make it your mission to stand out as the leading authority in your domain of expertise. Your audience will admire your thought leadership and naturally choose you over other vendors.

3. Developing self-awareness.

Rivals force you to assess your strengths and weaknesses. Use your superpowers to create a more unique value proposition to customers. Understand your shortcomings and find ways to overcome them.

Related: How to Build a Brand That Attracts Die-Hard Followers

4. Encouraging differentiation.

Competitors will consistently try to offer better customer service, product quality and marketing. In healthy markets, buyers will demand the best solutions for their specific needs. Differentiate your offerings with the goal of creating tremendous value for the users you serve.

5. Exploiting industry trends.

Competition signals strong consumer demand. It provides validation for what you are doing. In new markets, this is an opportunity to promote an emerging trend that will get buyers and the media excited about your work.

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6. Forming unexpected partnerships.

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Create alliances with like-minded businesses. Exchange technology and tools, expand the overall market, cross promote each other’s products and collaborate on novel research to educate consumers. Perhaps one day, you might merge with, or acquire, your biggest competitor.

Related: 5 Secrets to Landing the Perfect Partnership

7. Mutual learning.

Watch the competition carefully. The knowledge and resources they have may be both better and different than yours. Actively learn from how they manage and grow their operation. Soon, you will discover ways to apply those lessons learned to your business.

8. Narrowing down a niche.

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Someone will always be better than you at something -- and that is OK. Customers deserve the best products and services to fulfill their individual needs. To build a profitable business, focus your efforts on making a smaller segment of the overall market very happy. By narrowing your niche, you develop a competitive edge that deters further competition.

9. Planning long-term.

Without competitors, most firms get lost in the day-to-day exercise of maintaining their business. As other companies join the market, you will need to start challenging yourself to accomplish more.

10. Prioritizing customer needs.

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Instead of focusing your energy on outdoing the competition, invest in becoming a customer-centric organization. This way, you will boost buyer loyalty and easily defend against aggressive suppliers or vendors intent on stealing your clients. At the end of the day, it is your users -- not your competitor -- who have the power to make or break your business.

Avoid letting rivalries turn sour and negatively impact your business. Invest in taking full advantage of the opportunities available when there are other companies targeting the same audience and buyer.

Related: 6 Reasons Every Company Needs a Customer Service Roadmap