Every business has some sort of competition. You might be fighting with a similar company to have the best prices or you may just be striving for people to spend money at your establishment instead of elsewhere. Determining who your competitors are and understanding what they offer will help you boost your own business’s performance.
Who is the Competition?
The first step in understanding your competition is finding out who they are. For example, if you are a local business a competitor might be a large chain store. Or in today’s world, the Internet could be taking away business due to the convenience of online shopping. If a list of competitors doesn't come to mind right away, do some research! Places to look for possible competitors include:
- Local business directories
- Advertising and marketing material
- Local Chamber of Commerce
- Surveys from your customers
- Searching online for products or services similar to yours
Study Your Competition
Once you find out who your competition is, make it a priority to study how they operate.
Visit their Store- If your competitors have physical storefronts, go there and look at things like prices, how the store is set up, how products are displayed, how many employees there are and the store’s overall atmosphere.
Go Online- Take a look at your competitors’ Websites. How do they compare to yours? Are they more user-friendly or visually appealing? Websites aren't the only place online to analyze your competition; don’t forget to check out any Social Media profiles. What Social channels are they using- Facebook, Twitter, Google+? How are they engaging their online audience? Never underestimate the power of Social Media for your business.
Learn About their Customers- Find out why customers are choosing your competition over your business. Maybe they are providing better customer service, holding more sales or have other incentives that would lead them to choose your competitor over you. In a situation like this, try imitating what they are doing to draw in more customers.
Compare & Contrast
Once you gather information about your competitors, take that information and compare it to your business. Make a list of what they are doing better than you and what they are doing worse than you and adjust your business strategy accordingly. Don’t be afraid to use your business’s strengths to your advantage, but be sure to take the time to work on your business’s weaknesses to eliminate the gaps that separate you and your competition.
It’s a competitive world, but understanding your rivals can only help your business succeed. How does your business maintain a competitive edge? Share with us via a comment or on our Facebook page!
Labels: Business Tips