How well do you know your competition? I’m not talking about whether you have a laundry list of your competitors, but rather if you have real insight into who they are and what they do well. I’ll bet your answer is, “I have a pretty good idea, but I’d like to know more.” Good answer.
There are a million different ways to conduct a competitive analysis, but instead of focusing on the nitty-gritty details I’d like to give you some advice from the 35,000 foot level…
- SWOT your competitors – no, I’m not advocating violence. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. Analyze them, and yourself. You’ll gain remarkable insight into how you match up. You may find that you aren’t focused in the right areas, or there’s an oversaturation in a market or, if you’re lucky, that there’s an untapped area of the market just waiting to be cultivated.
- Focus on your strengths and differentiators – once you have an understanding of what you and your competitors do, you can more accurately refine your strategy to maximize your strengths while exploiting the other guy’s weaknesses.
- Good understanding = short cycles – a solid competitive understanding is essential for moving quickly and staying ahead. When it comes to business, you’re either ahead or you’re behind. In the immortal words of Ricky Bobby, “if you ain’t first, you’re last.”
You get the idea. A SWOT analysis is one of the big secrets to unlocking your company’s true potential. Like most marketing activities, they aren’t easy, but they are definitely worthwhile. If you need help, contact me and we can come up with a solid strategy.
October 4, 2009 at 7:51 pm
I’ve seen it happen a million times. A company sees their competition do something that’s different, and they immediately jump on the bandwagon. After all, if our competitors are doing it, they must know something we don’t, so we better get in on the action before it’s too late! Sigh… alas, copycatting is not a strategy. And the sad thing is that your competition probably doesn’t know any more than you do. Congratulations – you’ve just fallen for the oldest, least disciplined trick in the book and turned into a “me too” marketer.
You can see this happening everywhere you turn. Do the terms green, whole grain, sirloin, organic, and hand-crafted sound overly familiar? They should, because they’re everywhere, used for products ranging from food to shampoo to cars. If words or phrases or overused, they (and their associated products) suffer from commoditization. In other words, the message loses its meaning, and all the products in a certain category are perceived by the audience as being the same. Once this happens, customers no longer have brand loyalty, and the only differentiator they care about is price. A great example of this phenomenon is gasoline. How often do you choose gasoline based on additives? Or the ability to eliminate knocks and pings? Chances are you buy your gas based solely on its price. This is commoditization as its worst.
How do you avoid this pitfall? The best thing you can do is create your own Unique Selling Propositions (USP). Every company has strengths and weaknesses. Capitalize on your strengths by developing a messaging strategy that separates you from your competitors. Determine how your products and services can be presented to your audience in a unique, informative, entertaining, and compelling manner. Make sure that you’re clear, concise, and consistent in your application of the message. And above all, take the time to let your USPs develop. Like a flower, marketing is a process that needs a lot attention, a lot of love, and the patience to allow it to come to fruition.
Follow this advice and you’ll be amazed how quickly you can separate yourself from the “me too” herd!
June 23, 2009 at 12:50 am