The analysis of the competition
28 November 2008 - 19:10
The analysis of the competition consists of the study and analysis of our competitors, so that later, on the basis of this analysis, to make decisions or to design strategies that allow us to compete suitably with them.
The importance of the analysis of the competition is in which when counting on certain information of our competitors, we can remove benefit from her and use it to favor ours, for example, can take advantage of its weak falencias or points, take like references its strategies that better results are giving them, or can take our precautions when knowing a future strategy that are about to apply.
In the first place we must compile all excellent information on our competitors, or are businesses that sell products similar to ours (competing direct) or businesses that sell products substitutes to ours (competing indirect).
We can, for example, compile information on:
- how many they are our competitors.
- which are the leaders or the main ones.
- where they are located.
- which are their markets.
- which are their main strategies.
- that material or consumptions use for their products.
- which are their prices.
- which is its experience in the market.
- which is its capacity.
- which are their advertizing means.
- which are their channels of sale.
- which are their strengths and weaknesses.
And, once compiled the information, we happened to analyze it and, later, to make decisions or to design strategies, for example, we can choose by:
- to reduce our prices, if, for example, there are shortage that are not producing and that cannot maintain their prices low.
- to aim towards a certain market, if, for example, we discovered that this market is not being taken into account by them in spite of being attractive.
- to avoid to aim at certain market, if, for example, we noticed that in him it is not going to them well, and do not know the cause of it exactly.
- to give more attention to the design of our products, if, for example, we discovered that is one of its weaknesses.
- to avoid some strategy that is using, if we noticed that they use still it although is not giving good results them.
- to take like reference its strategies from publicity, if we noticed that they are giving good results them.
Like final note, we can indicate that the analysis of the competition does not have to be a task that is realized a single time, and that soon we forget it (something that usually happens when initiating a new business), but it must at any moment be a task that we realize permanently; we always must be kind to the movements, decisions or strategies that our competition realizes, to its new products, their new points of sale, their new markets, etc., and, simultaneously, always trying to anticipate these movements, decisions or strategies; always trying to advance us to them.
Image: Conor Lawless
Labels: Concepts, Study of market, Tools of business, Marketing
Compártelo
Related contents:
- Steps to realize the analysis of the competition
- Concept of the Benchmarking
- Concept of the investigation of markets
- In-core analysis: strengths and weaknesses
- External analysis: opportunities and threats
