Competition is something that cannot be avoided, regardless the size of the business, or industry and market in which it operates. Even if there is no competition, that doesn’t mean it will last long and will not appear in the near future.
You should not be afraid of competition. But, you must implement a strategic and systematic approach in analysis of your competition and use that knowledge in your daily operation and management of your business.
If you ignore your competition, you will have real problems which will be manifested through declining market share, lower sales, decline in number of customers and yes, the biggest problems as a cash-flow problems. These problems will destroy your business. It’s a fact that you can’t allow you to be ignored.
Because of that, you will always need to ask yourself and answers the following questions related to your competition.
- Who are main competitors that can have big effects your business?
- Where are they in relation to you when you conduct a competitive analysis?
- What are the possible potential competitors that are not yet competitors but can be in the future?
- What are their products or services?
- Where are their products or services in relation to yours?
- What is the value that they offer to their customers?
- Are they delivering more or less value to their customers compared with your offer and your deliverables?
- What is good in their offer that you don’t have in your offer?
- Can you implement something that you don’t have in your value that your competitors have?
- What is their total offer?
- Is it different from yours? If it differs from your total offer, what are the differences?
- What are the elements where their offer is better than yours?
- What are the elements where your offer is better than theirs?
- What are the benefits and features that they offer with their products or services?
- Where they are finding their customers?
- Who are their most important customers?
- How your competitors encourage their customers to buy from them?
- How much they charge for their products or services?
- Where they are advertising their products or services?
- How they are recruiting fresh staff with high skills for their business?
- How often you analyse them?
- Do you apply the findings of the analysis in the everyday operations of your business?
Question: Have you ever analyse your competition? How this type of analysis help your business to become better than competitor’s business? You can leave a comment by clicking here.