How to identify competitors? What needs to be taken into account when assessing the competition? What information is important to know the competitors better? Learn how to use competitive knowledge to your advantage with the tips we’ve separated below!
Identify the competition
How do you know if a company is your competitor? The answer is not as obvious as it sounds. Companies with the same business segment may not necessarily compete with each other. That’s because what really matters is similarity of customers and goals. How to find competitors of a company?
A good strategy for identifying your competitors is to ask customers and suppliers which companies they perceive as similar to yours. Furthermore, researching the market through the internet and advertisements is an efficient method to map who wants to reach the same customers.
Evaluate the acting
Competitive analysis is critical to developing a good marketing strategy. In order to have a more specialized assessment, the company can count on an advisory service to carry out a survey of the information that will be analyzed. As much data as possible should be sought to identify current and future competitors’ objectives.
At this point, it is important to verify which are the strengths of the performance of other companies that may pose a threat to your business. Hiring a consultancy to implement strategic changes and reduce weaknesses can be relevant. In addition, it is important to map the competition’s weaknesses, which may be indicative of good opportunities for expanding its operations. How to find competitors of a company?
learn from competitors
Watch closely what competitors do. Find out what the market trends will be, which strategies are the right ones and which new businesses might be interesting to invest in . Thus, it will also be possible to identify if the best thing to do is to improve the products or services that already exist.
Take advantage of your competitors’ actions to look to the future and plan the development of your business. Learn what works, avoid mistakes made by others, and always stay one step ahead.
Turn the competitor into an ally
Competitors are not a negative force for your business. Although they represent the danger of losing business, they can also function as a laboratory for observing the strategies in a given sector. Your company won’t need to implement all the strategies and innovations if it can rely on competitive analysis to filter out successful initiatives. How to find competitors of a company?
Knowing your competitors is a good way to create a strategic plan and increase your knowledge of the market and customers. Combining competitive analysis with improvement strategies can be the way to create a strong brand in the market.
To be considered a competitor, a company needs to fulfill two conditions: to have products and services that meet the same needs as those for which its products and services are oriented and to focus on the same customer profile.
A company can manufacture or sell products very similar to yours and not be a direct competitor, but it can be indirect (see below for classification). It is enough for her to position her products for a target audience of another age group or income, for example.
On the other hand, even very different products and services can be competitors, as long as they meet the same need, for example: restaurants, snack bars and bakeries, which in many situations offer different dining options for the same type of customers. How to find competitors of a company?
As it is increasingly difficult to identify the competitor, they are classified as follows:
– Direct competitor 1:
is one that sells the same line of products to the same target audience, with the same price range in the same type of Point of Sale (POS).
– Direct competitor 2:
is one that sells the same product line to the same target audience, with the same price range, in different types of POS, such as department stores, for example. How to find competitors of a company?
– Indirect competitor:
is one that does not sell the same product line, but that reaches its target audience with a clear product replacement strategy. An example:
The credit of up to 72 months for vehicle financing can make the customer exchange the purchase of furniture, which was already planned, for the opportunity to have a car. In this case, the competitor was another POS, with another type of product, but with a differentiated and aggressive sales strategy. That is, the granting of long-term credit to cause the replacement of one product for another. How to find competitors of a company?
What to do
It was easy to identify direct competitors, isn’t it? And the indirect ones? They seem to be everywhere and everywhere. To be more precise in identification, here are some recommendations:
Identify the direct competitor, if possible be their customer to know what they are doing differently in the product line, price, POS setting and communication with the market (advertising and targeted communication mainly). How to find competitors of a company?
Pay attention to the market in general and constantly check the variations that occur in your business. For example: how many customers enter the store and how many actually buy.
Check if any brand, or any specific sector of the economy, is promoting long-term credit lines, price promotions, etc, as this type of movement from indirect competition can directly affect your company’s revenue.
Also check the regular customers: they are buying more or less products, they are spending more or less in your store. If there is a large variation with most customers, either for more or for less, then some abnormal market movement may be taking place. Find out what it is and take immediate corrective action.
Do market research that can start with the use of a local phone book. Search for the commercial and industrial associations active in your municipality and acquire a list of members, making your search easier. How to find competitors of a company?