To complete a thorough competitive analysis, you have to be aware of the competitive landscape. You have to know who your opponents are. Prepare a synopsis of your competition, their strengths and weaknesses. Understand the customer wants and preferences which are you currently competing to meet.
You must also think about how their prices compare to yours and how well they’re doing. You need to have a specific strategy to compete. By way of instance, you can provide better quality services, lower costs, more support, or easier access to services. You must address the following fundamental issues:
- O Define your target audience.
- O Drill down to a particular segment within the target industry.
- O Define the dimensions and the revenue opportunity your segment represents.
- O Determine how quickly the general market and your particular segment are growing.
- O Learn what factors are most important to your clients like cost, technology, ease of use, or new applications.
- O you have to know the main characteristics in your own industry. Is is driven by low or high volume? Is it labor or capital intensive?
- O Describe your direct and indirect competitors and understand their effects on you.
So as to deal with the basic problems, you have to know where to locate competitive and business information. Information is available in the Federal Commerce Department online or at the library. You may review Edgar Online and company sites to obtain required financial filings. Start looking for an industry trade association and business publications. Proceed to Hoovers Online or Bacon’s to search for company books in your industry.
After all basic issues are addressed and your aggressive research is finished, you should have the ability to describe all your competitors and their strengths and weaknesses. You need to be able to clearly articulate what’s different about your product and why customers will choose your product instead of the competitors’. You should also have the ability to describe your target market and target customer and what’s going to motivate them to buy your goods. Finally, your should be able to describe how you are going to gain and maintain a sustainable competitive edge. Read the details about questoes de concurso.