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
Frank Sinatra had a Vegas-inspired song called “Luck Be A Lady.” One of the lines in the song is:
“Stick with me, baby, I’m the guy that you came in with.”
In many ways, marketing is like Lady Luck that ol’ Blue Eyes is singing about, especially when it comes to branding. This is one of the trickier subjects to explain to someone new to marketing. In a nutshell, branding is the sum total of experiences and perceptions that a company has with its customers, competitors, and marketplace. The tactical elements of marketing — websites, brochures, advertising, etc. — are physical manifestations of branding. There’s also something called brand equity, which is not only a perceived value of a brand, but it can also be a tangible value. In fact, many organizations carry their brand as an asset on their balance sheets, with an actual dollar amount attached to it. Google has the highest brand value in the world, which is estimated to be worth more than $100 Billion. Software giant Microsoft has the second highest rated brand in the world, worth over $76 Billion.
There’s a reason why I mention these two examples together. You’ve undoubtedly noticed the “Bing” logo at the top of the entry. You may also be asking yourself, “what the hell is Bing?” As it turns out, Bing is the newest incarnation of Microsoft’s search engine, renamed from Windows Live Search. In my opinion, Microsoft made a big mistake and squandered a golden opportunity. They took one of the most high-profile aspects of the Internet (search engines), went up against the 800-pound gorilla, and didn’t take advantage of the Microsoft brand equity. Even worse, when you go to the Bing home page, the Microsoft name is nowhere to be found, so they can’t springboard their new brand off the established Microsoft name. How can you realistically pit a $100 Billion brand against a brand with zero equity? Frankly, you can’t. Microsoft doomed Bing to the ash heap of history before it even launched, just like another one of their infamous failures. The rest is just an exercise in futility.
What’s the lesson here? The Microsoft branding team should have told the Bing team, “stick with me, baby, I’m the guy that you came in with.” The only thing left is a roll of the dice and the hope that Lady Luck is on their side. I wouldn’t bet on it.
June 15, 2009 at 11:30 pm