When Competitors Keep You Awake
Competition is a fact of business life, but for many New Zealand SME owners, it hits harder than expected. Competitors move faster, price lower, market louder or poach your best staff. It can feel like a permanent game of catch-up. The pressure builds during the day and returns at 3am.
Mark, who runs a catering business in Hamilton, found himself in this cycle. Business had been strong for years, then two new competitors arrived. They undercut his pricing, launched slick campaigns and began luring clients away. Mark responded by working longer hours, dropping margins and obsessing over everything they did. He felt like all his hard work was being eroded.
Why Competition Pressures Arise
Pivotal People often hear similar concerns from business owners. Competition pressures ramp up when:
Industries have low barriers to entry – think food, retail, services
Overseas providers offer cheaper options
Technology gives new players fast scale
Customers become more price-sensitive and less loyal
Business owners underestimate how visible the competition is online
In Mark’s case, the real issue wasn’t the new players. It was how he reacted. He focused so much on defending ground that he forgot what made his business strong to begin with.
Rethinking the Issue
Pivotal People challenge owners to shift focus. Stop reacting to every move your competitors make. Start doubling down on what sets you apart. Competition isn’t the enemy – complacency is.
Think of it like sport. You don’t win by copying the other team. You win by training, improving and sticking to your strategy.
Practical Tactics Pivotal People Recommend
Name your edge. What’s your differentiator – speed, service, deep expertise, local trust? Own it.
Double down on experience. Products can be copied. Experiences can’t.
Stay out of the race to the bottom. Don’t just cut prices. Add value instead.
Invest in brand. Stories, values and reputation last longer than one-off discounts.
Collaborate strategically. In some cases, working with competitors helps everyone – shared logistics or group bids are examples.
Limit comparison time. Review competitors monthly, not daily. Stay informed but not obsessed.
Case Study – Mark’s Shift in Focus
Burnt out from chasing others, Mark took a step back. With support from a Pivotal People advisor, he mapped what his clients really valued. The answer was reliability and personalised service. No amount of discounting from competitors could match that.
He repositioned his business around consistency and client care. Prices rose slightly, but so did satisfaction. Within a year, Mark had recovered lost ground and improved profit margins. The competition didn’t disappear – it just mattered less.
Case Study – A Queenstown Tourism Operator
A family-run adventure tourism business in Queenstown faced pressure from large, corporate-backed operators. The owners felt overwhelmed by flash marketing and deep discounts they couldn’t match.
Instead of trying to keep up, they leaned into their difference – heritage and authenticity. They told their family story, built strong guide training and created behind-the-scenes experiences only locals could offer.
Guests loved it. Reviews praised the “real Kiwi experience.” The corporates still operated, but this small business carved out a loyal following that returned year after year.
The Emotional Weight
Watching a competitor win a client can feel like a personal rejection. Pivotal People often see business owners stuck in cycles of comparison, self-doubt and overreaction. The pressure is emotional, not just financial.
Reframing helps. Competition is part of the environment, not a personal attack. Some customers will always leave. The goal isn’t to stop that – it’s to build something strong enough to weather it.
Wider NZ Context
New Zealand’s market size adds pressure. In many sectors, there just aren’t that many customers. Hospitality, retail and tourism feel this most. On top of that, global platforms like Amazon or Uber drop in, changing the game.
Still, our small size is also an advantage. SMEs here can pivot faster, personalise more and build trust face-to-face. Pivotal People often encourage owners to focus on what big players can’t replicate – local loyalty, adaptability and service that feels human.
It’s also important to separate perception from reality. A flashy competitor online might look huge, but that doesn’t always mean they’re profitable or sustainable. Don’t confuse noise with threat.
Measuring Progress
You’ll know competition pressures are easing when:
You spend more time refining your business, not watching others
Customers talk about your strengths, not your prices
Revenue recovers or grows, despite new players
Online reviews highlight what makes you different
You feel more focused and less rattled
Mark knew he’d turned the corner when customers told him, unprompted, that his dependability mattered more than cheaper options. The Queenstown operator knew when returning visitors booked again – and brought friends.
A Final Thought
Competition will always be there. That’s the game. But the real challenge is not about what your rivals do – it’s about how clearly you back your strengths. Pivotal People work with owners to sharpen focus, lift confidence and build businesses that don’t panic every time a new player arrives. When your identity is clear and your value is solid, you stop losing sleep over the noise. You just keep playing your game.
