What will be your response when competition shows up in your luxury real estate marketplace? Do you take it as an opportunity to sharpen your focus and confirm your competitive edge, which would be a win for you? Or, do you complain and embark on a whining campaign.
If you follow business news, you probably heard about Uber (valued at $50 billion) threatening to dominate the taxi industry because of their great service and reliability. Who would have thought that taxi customers were an under served market niche?
In the hotel business, a similar scenario is happening with Airbnb, Inc (home-rental service). Their value, $25.5 million, is now on par with Hilton Hotels valued at $27.6 million. Who would have dreamed that there was a need for travelers beyond the traditional hotel model?
The traditional taxi business has begun the whining cycle by looking to the government to help them out, instead of taking the opportunity to better or best the new entries in their market. Likewise, Airbnb is facing opposition from local governments whose revenues are enriched with a hotel city tax. Hotel chains are also looking to the government for regulations to stop this upstart.
We have long emphasized that by finding an underserved or uncontested market niche (like taxis and home-rental service) you can become a dominant player in a new market category. This is exactly what Uber and Airbnb have done.
What will you do when new competition comes to town, whine or win?
Written by Ron & Alexandra Seigel-
ABOUT: Napa Consultants, International is the leader in brand strategy for the luxury real estate industry. They work exclusively with professionals who are passionate about gaining or sustaining market leadership. With an expertise in personal branding, company branding, luxury real estate website design and social media marketing they help their clients become the breakaway brand in their marketplace.