How Businesses Compete for Consumer Trust and Wallets: Insights from Business Coach Liudmyla Kalabukha

Ukraine, 26th Feb 2025 – Why do some companies thrive while others shut down? Why is the absence of competition in a niche a negative sign for beginners? Why does a company’s position influence consumer choices more than pricing? Why don’t Ukrainian entrepreneurs want to unite, and what other strategic mistakes destroy their businesses?

These questions were addressed by Liudmyla Kalabukha—the best business coach in Ukraine according to the Ukrainian Business Awards, an honorary UN ambassador for women’s entrepreneurship development, a sales expert for the Diia.Business state program, and a writer (Best Books of Ukraine 2017, 2020, 2023, and 2024, nominated for the Shevchenko Prize 2025).

How does competition influence business development today? Is it a driving force for innovation?

If a business perceives competition only as price dumping—playing the game of “who offers the lowest price and earns the least”—then innovation, growth, expansion into new markets, modernization, the creation of new products, upgrading material and technical resources, and attracting top specialists are out of the question.

Unfortunately, most Ukrainian entrepreneurs see low prices as their main competitive advantage. But dumping is a dead end—a business killer.

Why? Because when you sell cheaper than your competitors, you can’t develop and are doomed to work only with the economy segment—so-called “price-sensitive customers.” But they won’t be loyal—the moment someone offers a price 3 cents lower, they will leave.

Price is not the only reason a consumer chooses a particular company or product. You need to build relationships with customers through values, quality, service, assortment, approach, marketing activities, and PR strategies. You must also communicate values that resonate with your target audience.

Only then will price competition be irrelevant, allowing you to modernize and innovate.

What are the main benefits and drawbacks of competition for businesses?

Let’s start with the negative consequences. The biggest risk is that entrepreneurs and sales managers lack the skills to handle customer objections regarding competitors.

The most common customer remarks are:

 • “Competitors are cheaper, closer, faster, friendlier, offer post-payment, or installment plans, which you don’t.”

These objections seem unbeatable and are among the most common issues raised during sales training.

How do you overcome such objections?

Never badmouth competitors! Even if they act unfairly toward you and you have every reason to criticize them.

Speaking negatively about competitors immediately destroys your reputation. It shows your customers that they are strong players and that you are overly concerned about them.

Moreover, if you constantly mention competitors by name, the client might become curious about them instead of you.

For example, if you say:

“Company ABC is unreliable, dishonest, and terrible,”

the client remembers “ABC,” not you. This damages your sales.

During an interview, I was asked to comment on a controversial public figure who had become an info-businessman selling courses. I replied:

“Why mention his name? Most viewers didn’t even know about these courses, but now they’ll Google and buy them.”

Even negative publicity promotes competitors.

What are the positive effects of competition?

Here are three key advantages:

 1. Customer objections about competitors are actually a good sign!

 • This means they haven’t bought from them yet!

 • If they were already satisfied, why would they call you?

 • Objections mean the customer is looking for something better, and this is your chance to close the deal.

 2. Customers who compare you with competitors already understand the product.

 • They don’t need basic explanations, saving you time and effort.

 • This allows you to move them toward a purchase faster.

 3. Competition forces you to improve your services, products, and communication.

• If you master handling objections professionally, no competition will scare you.

How important is competitor analysis for building a successful business strategy?

Many entrepreneurs are so busy with daily operations and product improvement that they forget a fundamental step—analyzing competitors.

However, this analysis is key to:

 • Building the right marketing strategy.

 • Identifying aspects of your product that need improvement to stay competitive.

 • Avoiding mistakes others have already made.

 • Spotting competitor weaknesses and using them to grow your business.

Why do entrepreneurs avoid competitor analysis if it’s so important?

They find it time-consuming—spreadsheets, reports, and market reviews seem complex.

But as a business coach and practitioner, I suggest a simple, effective method that brings immediate results.

Here’s a quick way to analyze competitors:

 1. Read Google Reviews.

 • Find the top competitors in your niche.

 • Read customer reviews about them.

Look for two things:

 • What customers like: This shows their competitive strengths (e.g., fast service, high quality, convenient location).

 • What customers dislike: This reveals their weaknesses (e.g., slow responses, high prices, long delivery times).

 2. Use this information wisely.

 • Improve what competitors do well.

 • Highlight in your marketing that you lack the weaknesses they have.

 • Example: If customers complain that a competitor’s response time is slow, emphasize your fast service.

 • If parking is an issue, promote your easy access and free parking.

If this method is so simple, why don’t more businesses use it?

Entrepreneurs often assume that customers automatically understand their product’s advantages. But that’s not true!

If you don’t highlight your strengths repeatedly, clients won’t notice them.

Sometimes, the simplest steps bring the best results.

Should new businesses enter highly competitive niches or avoid them?

Many startups believe they’ve found a unique product no one else offers. But this mindset destroys most new businesses.

A completely unfamiliar product requires enormous investments in marketing and education—resources that small businesses rarely have.

Go where competition exists!

Why?

 • It proves that money flows in that niche and that customers already understand the product.

 • There’s no need to explain what it is—just communicate why they should buy it from you.

 • If people are already buying, the market can handle one more player—you!

But never compete on price! Instead:

 • Study competitors carefully.

 • Build trust with customers.

 • Develop a strong media presence and a positive reputation.

That’s how you’ll gain loyal fans and turn your project into a commercial success.

Has competition changed in the business environment during the war? Has there been an increase in solidarity among entrepreneurs?

With a shrinking number of solvent customers, competition is fiercer than ever—not just for money but also for trust and brand loyalty.

The war has added a new layer of competition: reputational battles.

Now, companies compete not only on quality and price but also on their social responsibility:

 • Businesses that actively support volunteer initiatives, the army, or war victims gain more customer loyalty.

 • Those who remain silent risk losing their reputation.

Have businesses become more united?

No. With fewer paying customers, businesses are focused on survival rather than solidarity.

What else influences customer choices during war?

A company’s public stance—demonstrating faith in Ukraine, resilience, and determination to continue working.

In hard times, people seek inspiration and confidence—not just products. Businesses that show strength and commitment gain customer support.

Meanwhile, those that spread negativity and hopelessness risk losing their audience.

Insights from Lyudmyla Kalabukha – Ukraine’s Best Business Coach (2023, Ukrainian Business Awards), UN Honorary Ambassador, Sales Expert for Diia.Business, and an award-winning writer.

Instagram: @kalabukha.l

Media Contact

Organization: Liudmyla Kalabukha

Contact Person: Rostyslav Pelekh

Website: https://kalabukha.com.ua/

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Country: Ukraine

Release Id: 26022524414