Knowing who your competitors are, how they compare, and what their competitive advantages are is vital business intelligence. Do your research, talk to customers, and find your point of difference. #businessadvice
Whatever your sector, niche or marketplace, there’s almost certainly going to be other competitors in that space – but do you know who they are and what threat they pose?
Are you the only provider of your specialism, or are you one of many companies that are all vying for the same customers? Knowing who those companies are, how they compare and what their competitive advantages may be is a vital piece of business intelligence for you.
So, how do you start this process of identifying your competitors and benchmarking your offering against the nearest market competitors? The answer is to do your homework...
Researching your competitors
To begin with it’s worth understanding the difference between your direct competitors and those companies which are indirect competitors. Knowing who your direct and indirect competitors isn’t always easy, but defining the differences is quite straightforward:
The key point here is to not limit your thinking purely to businesses that do exactly what you do. Think wider than the products that provide the same features and benefits. For example, a motorbike manufacturer competes not just against other makers of petrol motorbikes but against makers of electric bikes, pedal bikes and small car manufacturers – all of which offer a small, handy form of personal transportation.
To understand who your competitors are: