What a Competitive Analysis does for your Business?
If you have ever written a business proposal then you should be familiar with this term. If not, then continue reading.
The aim of a competitive analysis is not just to write a business proposal that will earn you a loan or grant from the bank, the aim is to make you thoroughly aware of what is involved in your market so you can prepare on how best to deal with it.
I remember in my secondary school that I was not very good at solving mathematical problems. That’s just my innuendo for saying I was terrible in science classes. When I was in ss1, I observed my first term results, while I made ‘As’ in my arts subjects like literature, government, English etc, I struggled to make a ‘C’ in maths, physics and chemistry.
So I decided that I needed to up my grades if I would scale through ss1. Ss2 wouldn’t be a problem because I knew I would drop those subjects but to get to ss2, I needed to first make the required grades in ss1.
So I observed my classroom, the students were so competitive that everyone wanted to be the number one, so I knew they were my competitors, but they were also what I needed to pass. I didn’t really want to be number one, I just wanted to pass and be done with it!
So I decided to collaborate.
Some of the students were so good in science subjects that I decided to change my class neighbour. I wanted a science student to sit next to me and help me out in my science subjects while I returned the favour with the arts subjects and it worked out so well.
A competitive analysis does the same for you. It examines the strength and weaknesses of your business alongside that of your competitors. A competitive analysis reveals who your competitors are as well as any potential threat you may face.
When you have done your competitive analysis, ensure you follow up/take action on the results you have gathered. Like me you may want to:
▪Go to the ants and learn their ways
▪Study closely your competitors and adopt not copy a methodology. You may want to adopt their business model instead of treating them like an enemy and hoping for a miracle that will put them out of business😛
▪ Improve more in the areas you have an edge over them in order to stand out
▪Build a strength around their weaknesses in order to survive in the market
▪Avoid sitting on a time bomb by finding a way to adjust your business in line of what works, even if it means letting go of a class neighbour who won’t be of value to your growth.
▪Find out what their customers love and why they’re doing better than you
▪Keep abreast with potential changes and prepare for them.
▪Ask for feedback from your customers. Find out what they love about your business/service and keep at it.
🥂To your continued business success and growth