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How to properly conduct a business competitor study
Competition is the cornerstone of the business world. It can be defined as the rivalry between two or more businesses vying for the same customer or market. In today's global economy, competition is fierce and pervasive. As such, it is critical that businesses understand their competitive landscape by identifying the strengths and weaknesses of each competitor.
The process of analyzing competitive advantages requires businesses to study the market place and make a detailed list of their competitors. This list should include direct and indirect competitors, along with a brief description of their strengths, weaknesses, and unique selling propositions. This exercise helps businesses identify their competitor’s deficiencies, while emphasizing the business’s unique strengths in comparison.
When reviewing competitors, it is important to admit their strengths. This exercise will help businesses understand where their competitors excel, and where their business needs to improve. It is equally important to identify competitor differences, as this awareness will help businesses develop strategies to clearly differentiate themselves from their competition.
It is important to acknowledge that simply having a strength is not enough. In today’s marketplace, businesses need to have distinct points of difference that will collectively be a motivating factor for potential customers to select them over their next closest competitor. For which businesses should review their competitors' products and services, along with their associated pricing in order to better identify what sets their offering apart from their competitors. Understanding how one’s offering and pricing compares to that of the competition is essential to identifying areas where a business may need to improve competitively.
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By analyzing the competition’s online reviews, social media comments, and customer surveys, businesses can gain a deeper understanding of what industry customers value, where other businesses are falling short, and areas where a new brand can differentiate itself. Pay attention not only to the content being shared, but also to the frequency and consistency of feedback or complaints.
Finally and most importantly, businesses should exploit their competitors' deficiencies. By understanding where one’s competition is falling short, businesses can develop strategies to take advantage of said shortcomings and attract customers who are not being well served by the competition.
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