To put together an effective business strategy, it's essential to understand two basic questions. First, what is your company doing and what are your competitors doing? You may have a handle on what's going on under your own roof, but developing a detailed picture of your competitors' activities and this requires some research.
Competitive intelligence is a field of strategic research that specializes in the collection and analysis of information about rival firms. Don't worry you won’t be required to dive in a dumpster or do some shady tricks for the information. Instead, competitive intelligence is about adhering to a strict ethical code by collecting bits of information that are available either in the public domain or from other players in the marketplace. The goal is to accumulate enough data to make meaningful comparisons between your business and your competitors and you will be able to make better informed strategic decisions as a result.
Develop a competitive strategy and that starts by evaluating how your company is performing to that of your competitors. This is not the time to play guessing games to evaluate how your company is going to stand up to that of your competitor. You have to assess your own and other companies based upon data and research.
Some questions to ask when making your analysis
1) What products does your competitor have in their channel and how will they market it
2) How does your businesses sales present themselves for all the different customer areas?
3) What other companies are out there that have or will be making similar offers that you are making?
4) What products or services do you and your competitors offer and how do they compare?
5) What are does your marketing budget look like and how are you going to market your product as well as how does your rival do their marketing?
6) Are there any differences in how much it takes for you to produce a product compared to your competitor? Who has the advantage?
7) Where are you selling your products and what are your intended consumers? Does your competitor fit into those areas compare the two and see if there are any similarities and or differences.
8) How well is your business organized and how do you operate at the same time compare how your competitors are doing those same things.
9) What channels do you use compared to your competitor. Meaning do you sell direct or mail order or the web.
10) Also evaluate if your competitor could be thinking or looking into a joint venture or strategic partnership, if so that’s something you might research for your business.
This is just a start in getting your framework together. There are many other aspects to Competitive Analysis. I will definitely be commented on those areas down the road. Remember that Competitive research will demand you to be resourceful and creative, remember that you will need to be mindful of the ethics and legalities as you do your investigating and research work.
Without an effective business strategy your company will definitely fail thanks for sharing.
ReplyDeleteAgreeing with Thomas on his comment, good article thank you
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