If a firm is no longer a monopoly, what are some strategies that can be used to protect its profitability in the face of new competitors?

In a case where a certain firm is no longer a monopoly, meaning that it is not the only commodity and service provider in the market where there are new entrants, below are strategies on how to face and handle the market competition.

a) Knowing your customers. For a company that was initially a monopoly, it should major on developing its customer base by widely understanding their needs and providing products and services in high quality.

b) Being unique. For any organization to thrive in a market surrounded by competitors, it is essential to highlight its point of strength or rather what makes it different in the market. It could be an ethical source of products, provision of products and services at a cheaper price, or establishing a brand name with durable products.

c) Approaching new target markets. Expansion from a single market is a perfect strategy to outwit your competitors. It generates greater revenue and draws more customers into the consumption of the products.

d) Maintaining existing customers. Even when chasing after entering new markets, it is necessary to keep an eye on the already loyal customers gained initially by ensuring better customer service.

e) Product development and invention. To thrive in a market with competitors providing similar services and products, developing your existing products is a perfect strategy to maintain profitability even with the existence of competitors. By understanding your target market as well, the invention and innovation of new products are inevitable.