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In warfare and business, no strategy survives first contact with the adversary. Your business strategy, like a military battlespace, must adapt to the realities of the marketplace.
Business is often likened to war. It’s a continuous battle to conquer the market, win customers, and secure sales. Just as you aim to succeed, so does your competitor. They desire your business and, if possible, your entire customer base. To achieve this, competitors will do almost anything to lure your customers away.
Know Your Enemy
Who is your competition? Specifically? Your choice of competitor influences virtually everything in your market. It determines:
What you offer
Where you offer it
Your pricing strategy
Profitability levels
Growth rate
And even your survival
Every action you take should consider your existing or potential competitor. And anticipate their likely responses to your moves.
Why do we Need Competitive Intelligence?
Determine Why They Buy
Once you’ve established why people buy from you, ask yourself:
“Why do people choose my competitors?”
What value do potential customers perceive when buying from competitors rather than you? Identify your competitor’s strengths, areas of specialisation, differentiation, segmentation, and concentration. What do they have or offer that you don’t? What are they excelling at or offering more effectively than you? What’s their unique selling proposition?
Marketing Myopia
Avoid dismissing or belittling your significant competitors. Don’t criticise or underestimate them when their names come up. Often, businesses think customers who prefer competitors are simply ignorant or misguided. This shortsightedness can prevent you from learning how to surpass your competitors.
One of the most effective strategies is to admire your successful competitors, not dismiss them. Study them, learn from them, and respect their strengths. Look at ways you can improve upon their key features.
What is Competitive Intelligence in Business?
Their Advantages
As you analyse competitors, search for ways to neutralise their customers’ perceived advantages. What are your competitor’s weaknesses, and how can you exploit them? What do you do better than them? How is your offer better than theirs? How can you maximise your advantages and counter your competitor’s strengths?
The more you understand why and how competitors succeed in selling to your customers, the better your chances of gaining a share of their market.
Be Clear
Develop greater clarity and accuracy on your competitors and why potential customers choose them. Rigorous competitive analysis is key to business success. Without it, you’ll always be at a disadvantage.
What is product competitive analysis?
Analyse Your Competition
Who is your direct market competition?
Are they targeting the same customers you are trying to attract?
Why do potential customers opt for your competitors?
What advantages do they perceive?
What would happen if you modified your offerings to target a different customer group that might be easier to sell to?
In what ways are you better than your competitors?
What could you offer that they are unable to?
How can you highlight this advantage in your sales and marketing efforts?
What is your competitor’s unique selling proposition?
What special feature or benefit does their product or service have that yours lacks?
Where is your competitor vulnerable?
How could you exploit these weaknesses to your advantage?
How could you adjust your marketing strategy to dominate a specific area, customer segment, or market?
How to Find Your Competitor’s Edge Over You?
Analysing Your Competition To Gain The Competitive Edge
Gaining a competitive edge in business mirrors the art of war, where strategy is paramount. The first step is to recognise that no plan remains unaltered in the face of competition. Knowing your adversary intimately is crucial in this relentless battle for market dominance. Your competitors shape your decisions, from what you offer to how you price your products. Understanding why customers flock to them unveils the secrets to your rival’s success. Rather than belittling competitors, embrace the opportunity to learn and grow. Identify their strengths and weaknesses and leverage your unique advantages. The journey to outperforming your competitors begins with clarity and rigorous analysis. And, importantly, a strategic mindset. With these tools, you can transform competition into an opportunity and secure your position in the marketplace.