Making News

(Jan. 28, 2008)

HONE YOUR SECRET AGENT SKILLS

Know your Competitors and What They’re Up To

By Shannon K. Benton and Lyndsey Forster

In today’s global economy, identifying and monitoring your competition, whether foreign or domestic, is the fundamental key to any successful business.  When creating or updating a strategic business plan, thorough competitive research must be conducted annually. Educating yourself about market shifts and rising players, while staying abreast of new products and services, will assist in propelling your company forward.

Be aware of your rivals and how to find them

Embark on preliminary research by gathering general knowledge from the Internet. This is the best strategy to jumpstart competitive market research. Utilize search engines, blogs and top industry sites to explore your various competitors and what others are saying about them.    

Monitor the stock market. Whether or not your business is publicly traded, examining companies in your industry allows you to compare financial information while aiding in the assessment of how your company measures up to the competition. 

Lastly, and possibly the most important component in evaluating your competition, is to engage yourself in what they are doing. Attend industry tradeshows to assess their new product developments and innovation, while uncovering those emergent trends pertinent to your industry niche. Also, be sure to pick up flyers, brochures, editorial placements and any relevant advertisements to learn more about your opposition. Moreover, simply speaking to customers in attendance at tradeshows allows you to gain valuable insight into their purchasing habits and behaviors. 

Evaluation process

In order to effectively evaluate a competitor, you must first distinguish exactly what type of competition you are up against.  Generally, three categories of competitors exist for any business including direct, indirect, and consumer. The methodology for determining what type of competition is in your business segment will aid in finding the specific audience(s) you should be targeting. For each category of competition, you should convey your message accordingly.   

Direct competition is typically the easiest group to research and target since these are the companies who are offering the same products or services. More difficult are the indirect competitors - those producing similar products within your same industry. You may have to dig deeper to uncover those companies and how they affect your business. When dealing with indirect competition, distinguish why consumers should use your product versus other similar products.  The third type of competition, the consumer, will prove to be the most difficult to control, as humans are creatures of habit.  

Knowing the competition inside and out allows for any business to strategically position itself in the marketplace. Competition can be painful at times, but it produces great results and allows your bottom line to shine. 

Want to learn more about how to uncover and conquer your competition? Contact Steve Kleber at sk@kleberandassociates.com or call 770.518.1000.

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