Business Efficiency: Do A Competitive Analysis
Measuring how you stack up against the competition and within the marketplace can unearth potential inefficiencies in every aspect of your business. For example, if your competitors are able to sell the same product at a much lower price, is that because their product is of shoddier quality or because they’ve got some technological assets that significantly lower costs?
Here are some suggestions for measuring:
How big is your market in terms of number of customers, units sold, or dollar volume?
What are the overall trends and developments in your industry? How many of these are you incorporating?
What is the rate of market growth or shrinkage over time? Are there any differences in market growth by time of year?
How big are your competitors? What companies have what portions of the market?
What products or services do your competitors offer? How do they differ from yours?
How does competitors’ pricing compare with yours?
What marketing strategies and tactics does the competition use and to what degree of success?
What are the key factors for success in the market you’re trying to serve? Are there any specific media outlets for reaching this market directly? What percentage of these markets are you utilizing?
How do customers perceive the problem your product or service is intended to solve? How serious do they believe the problem to be? What benefits would be most important to them?
How do customers solve the problem today?
What costs do customers incur now to solve the problem?