When it comes to new product development, researching the competition is a great way to get ahead and stay ahead in the local, national and global markets. On top of that, conducting a competitive analysis is also a good strategy for scaling your business without having to fear the competition. This is why doing it right is crucial to the growth of your business. Here are five tips that can you help when performing a competitive analysis.
Know Who Your Competitors Are
Every company has competition – businesses who sell the same products or services as them and take their potential customers – whether on local, national or international markets. That is why it is a good idea to come up with a list of competitors so you know who you are dealing with. Sometimes there may be a hundred companies that you need to deal with, but a much practical approach would be to list down your top ten competitors and focus on them instead.
Become Their Customer
When you become your competitor’s customer, you can gain insights into your own business or the product you are developing depending on the good and bad things you learn from them. This goes beyond merely just buying from them, but actually interacting with them to see what type of service they provide to customers. Since you are researching your competition, do not be afraid to bombard them with questions and take note of important insights.
Look Them Up on the Internet
This is where your investigative skills come in handy. This means going on the internet and looking at their website and social media pages, as well as seeing what people are saying about them on business review websites. The internet is also full of useful tools, such as Google Alerts, that enable you to keep tabs on your competitors.
Attend One of Their Conferences
When your competitor is hosting a conference or trade show, attending it is a great way to see what they are offering and get a glimpse of their overall strategy for the market. At these events, your competition will be boasting about their greatest products and services, giving you an opportunity to gather some first-hand knowledge you can use to your advantage.
Be On the Lookout for New Players
When you are in or planning to enter an emerging market, there is a high chance that new players can come in and steal your potential or current customers. So always be on the lookout for new businesses. Also, do not just restrict your definition of new players to startups only because even old companies that were previously selling their products and services in other markets can shift gears and enter yours, becoming the new players in this scenario.
Conducting a competitive analysis is a great way to develop a product that outshines the competition or reveal opportunities as they present themselves on the local, national and global markets. Any business that wants to get ahead, stay ahead and expand should seriously consider scoping out the competition by performing a competitive analysis.