– 5 Methods to Identify Your Business Competitors — Guide
Knowing who also has a share of the market is part of that risk mitigation process. By starting with your competition, you can immediately identify if there is a need in the market, as well as an opportunity to enter.
If you find that the barriers to entry are too great, you can pivot your business or try to adapt your product or service instead. But by knowing ahead of time, you can make these adjustments before launching. If you are business planning or holding a strategic planning session , developing an understanding of the wider competitive landscape will help you compete effectively.
Similar to identifying opportunities in the market, knowing what your competition is doing, or did, can better help you navigate similar decisions. By analyzing their launch, the product, and other elements that led to its failure, you can have an idea of what you need to avoid, or even if the venture is a solid investment. Competition is defined as whenever two or more parties strive to meet a common goal that cannot technically be shared. For businesses, this goal is typically tied to sales to customers, but can also include brand awareness.
Defining your competition is an important consideration, as you need to be careful not to define it too narrowly. If you fall into this trap, it is likely that competitive or substitute offerings can enter the market unexpectedly and disrupt you significantly.
Instead, it is better to define the competitive landscape more broadly. Taking into consideration direct competitors, as well as any close substitutes which may be providing better solutions to the same target market. These two distinct competitive categories are known as:. His competition was horse-and-buggy makers, bicycles, and railroads. That sort of competition is considered indirect.
On the flip side, the absence of meaningful competition can also be a signal that the market is immature, or demand is weak.
On the odd occasion, however, the lack of competition can be due to some significant innovation on the part of the entrepreneur, or when some true visionary sees opportunities before everyone else. There are a number of different ways to get a handle on your competition. Start with a simple Google search. One simple way to get a good sense of your competition is to Google the three or four groups of keywords you would like to be found for.
Businesses in a wide range of industries want to be the first thing searchers see when on queries related to their product or brand. However, if beating your competition is your primary pricing concern, opt for a competition-based pricing strategy. Using this strategy, you ignore product costs and consumer demand. Instead, you focus on the existing market rate for your products or services.
You then set your price to fall within the range of prices that your competitors offer. Since the market is segmented by lower, middle, and upper-tiered customers, you need to figure out which group is your audience.
Once you have that determined, you are in a better place to set your prices. Urban Outfitters created a powerful disruptive force because it hired artists instead of businesspeople to manage its stores.
They had freedom in shaping the interiors of their stores, and the result was remarkable. Urban Outfitters beat its competition by changing the traditional retail model: Its customers learned that choosing Urban Outfitters meant walking into a different store every time instead of experiencing the monotony associated with many retailers.
Identifying a model that can be changed, and executing these changes can take months, if not years, but you can easily start this journey using your own products and services. For example, you could boost the capabilities of your current business processes using virtual reality applications like Samsung Gear VR.
Giants like Nokia and BlackBerry were wiped out from the smartphone market because of lack of innovation. Remember, your competitors are regularly innovating, and new entrants are disrupting the marketplace. Your business should innovate often and in a manner that the competition finds hard to imitate.
Bottom line: When assessing which of these ways to beat your competition is best, define your brand, set a unique selling proposition, and stay ahead of your competition in terms of quality, price, and customer service. Providing great, and memorable, customer service is a great way to build loyalty among your customers and differentiate yourself from the competition.
Put a priority on hiring employees who have a full understanding of not just your products and services, but your brand as a whole. Finding the right people for the job is more important than filling those jobs.
Your staff should greet customers with a pleasing smile, and they should show gratitude to those they interact with. It is essential to boost the team spirit of your staff and hire team players. Reward the team players, as employees need constant motivation to outperform others. Your customer care team should always remain courteous and respectful.
They must always be responsive to customer queries. They should have a problem-solving approach and always ask for customer feedback. Customer-centric companies are powered by dependable staff who raise the level of customer satisfaction. By entering their website URL into the search engine bar, you can find out:. Check Their Social Media.
After all, opinions matter. Start by manually reviewing their pages. How many followers do they have? How many likes? What types of features or tabs have they included on the page? Consider the following elements:. Top posts: Take a look at their top posts. Figure out the reasons why these posts are performing well.
Do they have product photos? Do they engage in a unique way?
3 Ways to Size Up Your Competitors for Your Marketing Strategy
Replacement competitors are those who provide an alternative to the services that you offer that solves the same pain points. This would be the difference between a strictly industrial painter and a residential painter. Start by manually reviewing their pages. Go ссылка their ccompetitors and study how they do business. What if there who are your top 3 competitors no competition?
Max Freedman. After all, opinions matter. Looking to create a strategic battle plan in your marketing approach? But how do you approach taking on the competition? These aspects could be pricing, distribution and delivery strategies, market share, new products or services coming to market, who their long-standing, highest-spending customers are, the quality of after-sales support, and which sales and marketing channels they use. Knowing who also has a share of the market is part of that risk mitigation process. The biggest questions that you have to ask are, ‘are my locations going to be in.
Replacement competitors are those who provide an alternative to the services that you offer that solves the same pain points. If there is more. In short, it can be a struggle to take on competitors but it makes your business the best it can be for your customers.