Staying ahead in business - know what your competitors are doing!

FAST TRACK TO SUCCESS: Unless you know your competitors, you will never be able to reach the finishing-line first

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Writuparna Kakati | 22 Apr, 2008
Why do you need to know the competitors in your business? Businesses exist in a competitive environment, and the competition may take different forms. It may be over price, customer service, customization of products, or anything.

Knowing your competitors, what they are offering, and how they are performing- all these can help you to make your business stand apart. Whether it is pricing your products or responding to rival marketing campaigns, knowing your competitors' strengths and weaknesses is most important in any business.

Analyze who your competitors are, what they are doing, how they are doing, and act on the information you gain. That is what you must do to survive, compete and win.

Identifying your competitors

Business is not a war, nor the competitors are enemies, but you must compete with them. Otherwise, your business might be blown out of the water. And never persuade yourself to think that no competition is there. Competitors are everywhere- seen or unseen. You may be the only retail shop in your locality, but you must compete with cinemas or bars where your customers spend their money instead of with you. A new retail shop opening in the same locality could certainly be your competitor, but it is unwise to think that just an another 'your type of' business might take money away from you. Even a newly launched product that's being developed can do the same. While looking for competitors, do not look only what is already out there. Find below a list of sources where you could find so many of your competitors without much effort-

Local business directories
Trade fairs and exhibitions organized in your area
Local chambers of commerce
Advertisements in newspapers, magazines, on the TV, etc.

What you need to know about your competitors

1. How you competitors do business: Analyzing the way your competitors do business can give you a great insight into how to grab success understanding the areas you need to develop, and also to take advantages of the weaknesses of your competitors. Have a close look into the following-

What products or services your competitors offer?
How they price these products or services?
How the products or services are marketed, distributed and delivered?
What is their brand value?
Are the products or services innovative?
How effectively your competitors use media?
What type of business they are- limited company, proprietorship or anything else?
What methods they follow to earn customer loyalty?
What they are equipped with- their stuff number, infrastructural facilities, IT usage, etc.?

2. How your competitors treat their customers: Analyzing the nature of your competitors' customers is very important to determine your potential customers, their expectations and requirements. Try to find out-

Who these customers are?
What and why they buy from your competitors?
How they view the competitors about their strengths and weaknesses?

3. What your competitors are planning to do: Always try to look beyond what's happening now. Your competitors may be in the process of developing some new products which could soon make your products obsolete. Therefore, lookout for-

What your competitors are developing?
What technologies and resources they are using?
What they are targeting in terms of satisfying customer requirements?

After collecting as much information as possible about your competitors and their business, what you need to do now is act on that information. It is always wise to look for what you can learn from others. On the other hand, also try to analysis in which areas you are doing better than your competitors. Compete wherever you need to but never forget to check whether there is still some area which is unexploited or comparatively less competitive.

If you are sure that there is something your competitors are doing better than you, you must improve your way of business. Product or service quality, customer service, pricing strategy, promotional techniques, or anything- you have to try to keep everything better than those by your competitors. Also analysis the areas where your competitors are doing the same with you. Try for improvement in those areas before you competitors leave you behind.