12-08-2014
Competitive Set. And Match.
Dear House Rules,
I started a business last year with moderate success. Now that I’m cash-flow positive, I’d like to evaluate my 3-5 year plan. What role does the competitive landscape play in my marketing strategy? Can you describe what is involved in the analysis and how it can help my business?
Sincerely,
Getting to Know the Competition
Dear Know the Competition,
Performing a competitive analysis is crucial to growing your business. It will enable you to identify other businesses that compete for your customer’s attention and their buying power. In the 3-5 year timeframe of your plan, this information will enable you to formulate an effective strategy, implement it, and continuously monitor and adjust to changes in the environment. This systematic assessment includes a thorough exploration of your competitor’s background, finances, products, markets, facilities, personnel, and strategies. This information enables you to make short and long-term strategic marketing decisions and had major advantages such as:
5 Benefits of Competitive Analysis
- Avoid competitive blind spots
- Take an offensive posture in the market by developing a unique offering
- Capitalize on your competitor’s weaknesses by giving your customer something they don’t
- Focus your budget and efforts on strategies that will bring you more business
- Identify potential partnership within your industry and geographic area.
Competitive analysis is an ongoing discussion to include in your regular team meetings. Formal updates to your plan should occur on a monthly or quarterly basis. For more information about the intricate study of competitors work with a marketing firm to get organized and track your competitive landscape.