Competition

Over the past three years we have seen a dramatic influx of competition in all segments of the market place. The most obvious example has been the release of many "category" killers in the sub $1,000 category.

At the time of a new model's release the manufacturers' state how their new unit is going to cream the competition in the home appliance category, after 6 months each manufacturer realises that they have very little competitive difference and the large retailers just want to carve the price further reducing margins.

Gilkatho was fortunate to have foreseen the looming amount of competition in the home appliance market. In 2004 we ceased to renew a very effective print media campaign that we had been running in a glossy publication aimed at home appliances. This budget was re-allocated to direct marketing to the corporate market.

Three years later it is nice to still have a growing business and not to be caught up relying on the sales from the appliance wars between the likes of Myer, Good Guys and Hardly Norman.

The management foresight in avoiding a deteriorating market is one skill. Identifying opportunities in another market segment is another core management skill. More on that another day.