1. Identify your competitors because of their location? Visibility?

The quality of their

A competitor is someone who targets the same market
segments as you with a similar product. As such, an
advertisement company could operate next to another
company that also sells advertisement without
competing. How can this be? The businesses can target
different customers: One might serve multinationals,
while the other sells to local businesses.
staff? Are their prices too high? Or does their product
lack a key feature that’s demanded by your target
customers?
This analysis will give you an idea of how you can adapt
your strategy to counter their strong points and take
advantage of their weak points.

Generally, competitors are divided into three types: 4. Talk to your competitors directly
It can be a good idea to get to know your competitors
Direct competition—These businesses offer the same personally. In fact, taking that first step can often lead to
products and services to the same clients within the a relationship that’s beneficial for both sides.
same territory as your business.
Indeed, it’s not unusual for two companies to compete
Secondary or indirect competition—Businesses that
sometimes and co-operate at other times. For example,
offer slightly different products and services or target a
a competitor may be willing to refer customers to you if
different clientele within the same territory.
they don’t serve a particular market niche. But to do so,
Substitute competition—Businesses that offer different
they have to know, trust and like you.
products and services to the same clients in the same
territory. Even if you can’t come to an understanding with your
competitors, talking to them can still help you gather
2. Gather information about your main competitors
important information to help you differentiate your
Once you’ve identified your main competitors, you’ll want
business in the market.
to gather as much information as possible about them.
5. Identify your competitive advantage
You can try to compile the following information
Analyzing the competitive landscape will help you
about your competitors:
identify your competitive advantage. Maybe it’s lower
Products and services—Evaluate their products or prices or promotions that attract new customers—but
services and compare them to your own, ideally by remember that this type of strategy can be copied by
purchasing them and trying them out. How is the quality? your competition and might not be viable in the long run.
What features do you like or dislike? Who are their
Taking advantage of a weakness in the competition is
suppliers? Does it respond to consumer preferences?
always a good idea. But is it sustainable? A competitive
Pricing—How are their products and services priced?
advantage should ideally be a great strength that’s
Do their prices vary for channel partners and customers?
distinctive and can appeal to your target clients.
What is their discount policy? Can you estimate their
Identifying your competitive advantage will help you
cost structure?
create your messaging and brand image by relying on
Positioning and branding—Analyze your competitors’
your key differentiator(s).
websites, product documents, brochures and
catalogues. Follow them on social media and visit them Another way of looking at it is that it’s important to keep
at trade shows. What are their target markets? What is tabs on the competition and improve your business in
their unique selling proposition? response, but you shouldn’t allow concerns about what
Market reputation—Talk to customers, suppliers and others are doing to dominate your strategy.
distributors to get their views. What do they know about
your competitors? What are their opinions about their
products, sales and marketing strategies and customer
service?

3. Analyze the competition’s strengths and

weaknesses

Preparing a written evaluation of your competitors will

allow you to compare their performance with your own.

You can list your competitors and write out their

respective strengths and weaknesses. Are they popular