Before launching any kind of business, it is vital that you research your competitors. Strategic research into who you are competing against in any sector is crucial because it can guide the development of your own business set-up and processes. Rivals are a positive in the entrepreneurial space because they encourage differences that are appealing to consumers. Having a more thorough awareness of what your competition is doing gives you an edge that promotes creativity, brand strengthening, and the fundamentals of business management in the digital age. Technology has given business owners access to a variety of methods and resources for developing a greater awareness of their competitors and should be utilized proactively if you want to maintain that competitive edge.
Step 1: Competitor Identification
The first stage of your research should be to identify your top ten competitors. No matter the size, scale, or platforms of your business, you can be confident that you have at least ten companies that are trying to sell the same product or service that you are. This is a simple action to take. Start with some simple Google searches using your keywords and geography. It will start building your list of main competitors. You can also use tools like SEMrush, which will identify those brands that are performing well digitally in your business arena.
Step 2: Content Analysis
Content is one of the main priorities for the modern business. While there is an almost infinite number of guides available that can help you with your content creation, knowing what your competition is doing is vital. Have a look at their websites and social channels to see what kinds of content they are posting, the tone of voice that they use, and how much traction they are gaining from their content. This can highlight what they are doing wrong, giving you the chance to build a stronger content strategy.
Step 3: Setting Prices
If you are selling a product that you have created yourself, then setting a price point is simply a matter of working out your costs and ensuring that you gain a good slice of profit on each sale. It’s more challenging to set prices when there are other businesses selling the same product as you, and that means adjusting prices. Knowing how much others are charging for a product is crucial. Look through the products that are being sold by your competitors, and use an image reverse tool of catalog images. This can identify other competitors, but also gives you an overview of the average prices that companies are charging their customers.
Step 4: Improve
Once you have developed a more thorough understanding of what your competitors are doing it will be easier to start developing your own growth strategy. Identify the areas where rivals are excelling, and if you feel that they are in full ownership of a certain space, then don’t try to compete immediately. Identify gaps and areas where your competitors are lacking, and you will be able to build a business strategy that takes advantage of the lapses of your rivals.
Competitor research has always been a fundamental part of managing a business. In the digital age, where competition can come from a global market, research into your competitors is crucial. If you want your business to grow, then taking the time to fully understand the companies that are challenging your position is one of the most important actions to take.
