In every industry, competition exists as there will always be various businesses that will offer similar goods and services. Even for industries where monopoly ensues, there are still indirect competitors that can provide alternatives to consumers. When you run a business, you do not operate in isolation, so you also have to be conscious not only of your market but also of other players in the field.
Some of your plans, strategies and campaigns will also hinge on competition as you have to determine how to position yourself in the market. While you may be selling the same products or doing the same service as several other ventures, you have to make sure that you have your own brand identity that will set you apart from other businesses. The reality is that everyone wants a bigger chunk of the market pie. And that means your competitors might want a share of your market.
It’s better to plan your strategies before you realise it’s too late. Assessing your competition will help you plot your moves along the entrepreneurial path. But how do you check your competitors and establish your brand positioning in the industry where you belong? Here are a few tips that can help you do a competitors’ analysis.
Identify and categorise your competitors
List your competitors and create a chart where you can input their information. How do you find them? Look around your vicinity. Most of your competitors may be sharing the same geographic area as you. You may see their advertisements, collaterals or marketing materials. You may hear them from people around you or the media. You may find them in trade fairs and exhibits or pass by their stores or offices. Know as much as possible about every competitor – direct and indirect. Do your research so you can better categorise the different types of contenders you have.
Check out available materials
There are always available sources and ready materials that can give you a lot of information on your competitors. Read their brochures, check their websites and social media, and update yourself regularly with news articles and press releases pertaining to other players in your area and industry. Know what they post, how they engage with their readers and followers, and how the market reacts to their strategies.
Try your competitors’ products and services
Oftentimes, the best way to know your competitor is to experience yourself their offerings. Visit their stores, order their goods and hire their services. Know who their employees are, as well as their suppliers. Observe how they conduct their business, learn a few tips and note down areas where you can improve in your venture.
Get feedback from customers and suppliers
Your customers and suppliers may share their impression and knowledge of other companies that are providing the same products and services like yours. It’s like hitting two birds in one stone because apart from learning about your competitors, you will also get an idea of what your clientele’s needs, wants and preferences.
Conduct a survey
If you want to know the thoughts of a particular sector, you can do an informal or formal survey and gather the information you need. There are now many platforms and apps that you can use to conduct a survey and interpret the data generated.
Do a SWOT Analysis
When you have the necessary information, you can do a SWOT analysis and competitive analysis to see the bigger picture and the finer details. Chart their strengths, weaknesses, opportunities and threats vis-à-vis yours. There are also available resources online and software that can help you chart the data and put together a competitive analysis.
Of course, all these are for a healthy competition where you are able to provide motivation and positive energy to push you forward toward your goals.