Ten questions you should be able to answer "yes" to
This is a list of questions that every business manager should be able to answer with an unqualified "yes". They largely relate to the fundamental need of identifying and understanding your competition, and if you find yourself giving a "no" answer to any of them it means you could be short of valuable information that would provide you with a competitive advantage.
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Do you know who your competitors are? Do you know where they are and how big they
are? Would you be aware if any new competitors entered your market?
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Do you regularly monitor your competitors' advertising and promotions by looking
for their advertisements, visiting their premises and looking at their websites?
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Do you talk to your suppliers about your competitors and gather information about
what they're buying and what quantities they purchase?
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Do you encourage your staff to keep an eye on marketing activity by your competitors
and pass any good ideas on to you?
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Do you keep up to date with technological developments in your field and will you
know if your competitors adopt new technology into their business?
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Do you know the statistics of your marketplace - what your share of market is and
what market share is held by each of your major competitors?
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Have you conducted a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis
on your business? Are you prepared to deal with any competitive threats that might
be identified?
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Do you know what opportunities exist for you to grow your business - either by taking
business away from your competitors or by expanding into new market areas?
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Do you know what is happening in the legislative environment that might affect your
organisation - that any pending legislation doesn't pose a threat to you or mean
that you will have to change the way you conduct your business?
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Do you regularly research your products against those of your competitors? Are you
able to respond quickly if you find your product offers fewer features and benefits
or needs improvement?
There may be a lot of work involved in finding the answers to all these questions
and using it to improve your product but, thankfully, yours aren't the only eyes
and ears available to monitor your marketplace. If you work together with your team
you'll be in a much better position to answer the questions and to make gains against
your competitors.
A business that knows and understands its rivals has a much better chance of
being able to withstand competitive onslaughts and to formulate strategies that
will take business away from others in its industry.
Competition is a fact of life, but only those who manage it effectively and use
it to improve their own organisation will find real success in business. By fine
tuning your knowledge about the competition and the marketplace in general, you
can get a real edge on competitors.
Academy of Business Excellence Limited
