What You Need To Know About Competitors To Win Today

culled from:hybridbizadvisors.com

Competition is a reality in business. While companies may come and go, technology, the rise in home-based businesses, new channels of distribution and the speed at which products can get to market has changed the competitive landscape for many businesses.

Keeping a pulse on the market is critical.  Understanding how you stack up, capitalizing on your strengths and adapting to change is often the difference between success and failure.  So when was the last time you did a thorough competitive analysis – one that looks beyond just price?  Here’s how to get started:

Who are my competitors?  Good question, but here is a better one.  How or where can my ideal customers purchase my products or services?  This opens it up to various channels that are often overlooked.  For example, a bookkeeper who travels to clients may look at others nearby.  But what about those who operate virtually with clients?  If you are not sure, Google can help you out.  Do both a local and broader search.  Some of the listings may surprise you.

Once clear on major competitors (4-6), it’s time to evaluate their strengths and weaknesses from a customer’s perspective.  While many businesses look at price, this is a function of value relating to other factors.  You need to view price with these other elements to get a better picture.  So in addition to price, look at the following areas:

    Products
    Quality
    Selection (choice)
    Service – hours, availability, responsiveness, people
    Reliability
    Company Reputation and Stability
    Location – visibility, convenience
    Distribution
    Appearance
    Sales Methods
    Credit Policies
    Advertising & Promotion
    Image
    Price

The relevance of each factor may vary by industry or business. So once you complete this for you and your competitors, rate the importance to YOUR customers.  For example, customers at a boutique may expect high quality, unique products and excellent service  – while price and location may be less important.

In assessing the strengths and weaknesses, for YOU and your competition, try to be honest.  If you struggle with this, get some feedback from a disinterested third-party – it can be eye-opening!

Finally, where are the gaps?  Any surprises?  These are areas where you excel or have a competitive advantage with YOUR ideal customers.  So how can you capitalize on it?

One caution.  Don’t try to be all things to all people.  If you find two or three opportunities, pick one that is most relevant to your market.  Then focus on this in everything you do!