In the market, hardly any company enjoys a complete monopoly. With an abundance of options available and information readily available to consumers, competition is becoming more intense and complex. Today’s challenges come not only from local players, but also from international competitors from all over the world, including manufacturers from Asia as well as global multinationals.
Even when you are the market leader, the biggest danger is to relax and ignore the activities of the competition.
Being passive allows other companies to slowly but surely take some of your market share through aggressive sales tactics.
Therefore, a thorough analysis of the competition and their business strategies, in order to identify threats and opportunities, is crucial.
Some of the important information that every company should keep track of is:
- Who are your competitors now and who might they become in the future?
- What is their business model and how do they organize sales?
- What is the quality of their products and what are their competitive strengths and weaknesses?
- What is their financial strength and are they planning new investments?
- What are their plans, short-term to long-term?
- What is their pricing policy?
- How are they perceived by customers and suppliers?
Detailed monitoring of these parameters can help prevent loss of market share, as well as identify opportunities for business improvement. Comparing market data, such as total sales and market share, enables an objective assessment of the strength of competition. Learning from the more successful is not a weakness, but an opportunity for improvement.
Also, it is important to pay attention to potential future competitors, especially those who develop innovative technologies or plan to enter the market from abroad. Examples of rapid changes in technology clearly show how disruptive the market can be – from classic cameras replaced by digital ones, to the transition from CRT to LCD and plasma televisions.
How to get information about the competition:
- Websites: Many companies publish detailed business information on their websites, including corporate values, products, price lists and business activities. Regularly browsing these pages can provide insight into their strategy.
- Media: Competitors often advertise in newspapers, radio, television and the Internet. Follow their marketing campaigns to learn more about their new offers, discounts or promotions.
- Visits to sales points: Direct insight into competing products at sales points and conversations with staff can provide valuable information about their products and terms of sale.
- Buying samples: Analyzing samples of competing products can reveal details about their design, quality and functionality.
- Customer Feedback: Customers of your competitors can often reveal key information about their product experience, including pricing and quality.
- Job Interviews: Candidates who have previously worked for competitors can offer additional insights into their business practices.
- Specialized agencies: There are agencies that can do detailed research and gather the necessary information about the competition for you.
The collected information is valuable only if it is properly analyzed and used for specific actions that will improve the market position of your company. Otherwise, they become a dead letter and just an expense without a real result.
