Everyone is familiar with Facebook. It is the biggest example of internet success today. But only a few know that MySpace was the first ones to explore the field of social networking. MySpace was witnessing a glorious time until Facebook came. Apart from building a strong platform for networking, Facebook also carefully analyzed the weaknesses of its competitors and capitalized on the same. Thus, it was, in a very short time able to wipe off other websites and monopolized the field.
Analyzing the market is the crucial step for upholding your own business; it will make you develop several marketing strategies with some backup plans for the elimination of the future risks.
In order to identify your competitors and analyze their strategies, follow these easy steps without wasting any time.
Identify your competitors
This is the major step for identifying your competitors in the market. Carefully analyze your industry and list all possible rivals with the help of various ways. Some are listed below;
- Own observation- Consider yourself as a customer for getting the answers to the most likely question “what all alternatives do I have for this particular product or service.”
- Internet
- Survey reports and trade associations- Documents on public research, SEBI filings
- Mass media- Advertisements, print and electronic media or popular articles
- Business Network- Stay in contact with the marketers, suppliers, salespersons and traders to seek reliable information from them.
Create an informative profile of those competitors
List down all your competitors and mention their respective profiles in a descriptive way. You can include different factors on the basis of thorough research work.
Learn more about their product or services
With this step, add the information regarding the competitor’s products or services including:
- Existing goods or services
- Recent products launched and the feedback
- Br and image and trust
- Quality based framework
- Partnerships and Licensing
Consider their target audiences
Focus on your competitor’s market. In other words, know their target audience and analyze if their business influences the particular age group or the whole market.
Relate these competitors with your business
After considering all above steps, you will be able to point out your real competitors in the presence of several businesses with the similar product or services but for different age groups.
Analyze their strengths and weaknesses
With this step, you have to find out the key factors behind your competitor’s success in the market. This is the best way for knowing the weaknesses and strengths of the competitor and will help you to come up with improved strategies. Try including the factors like quality, services, credibility, objectivity, market reach, costs, etc.
Follow their past, present and upcoming strategies
The next step is important in order to check out the past and existing strategies developed by the competitors. The strategies may include advertisement strategy, increased market share strategy, increase in long or short termed benefits, and improved product with advanced features, balanced prices and much more.
Know their investment plans for marketing
Follow the marketing strategies of the competitors and check the following components:
- Target customers
- Customer reach
- Trustworthy bond with the customers
- Prices and charges
- Discounts for customers
- Favorable allowances
Calculation of your competitor’s market share
The formula used for the calculation the company’s market share is based on dividing the overall sale made by the company with the total industrial sale. This formula will give you an exact percentage of your competitor’s market share.
Gather the opportunities and face the competitor’s threats
All these steps are very beneficial in order to find and compete with your rivals in the market. This is the best way to come up with better plans and marketing strategies for growing your business.
Also read: 12 steps to starting a business
