Competitor Analysis

If you don't think you need a competitor analysis, you probably don't know what one is. Or maybe you've been burned by one of those pseudo-analyses that creates a list of businesses that will compete with you. A competitor analysis is essential to the development of any business. In the name of brevity, let's list a few reasons why:

1. A competitor is not only Brand X, but, as detailed by Michael Porter of harvard, also a force such as buyer power, supplier power, potential for a cheaper replacement for your product, or a host of obstacles a new business will face due to scale, customer perception and so many more. Every new venture should work through these forces with a trained business strategist using Porter's 5 Competitive Forces Analysis. A simple PESTLE (political, economic, societal, Technological, Legal and Economic) analysis can identify other forces that might work with or against you. You don't want to develop a product that society won't buy (bell bottom jeans), the government won't let you sell (Marijuana), or can't be built (Steve Jobs waited for technology to catch up with his ipad concept).

2. A competitor analysis helps to identify core competencies and how they stack up against the competitors. This is crucial in finding your unique selling point, positioning your product and in identifying where your business needs help.

3. Related to the above, a competitor analysis can help identify potential collaborators. You may be able to position your new product to complement an potential competitor's or provide them with a new market. The lawsuit against SILK by the Milk industry ended when SILK agreed to have Milk wholesalers provide and profit from distribution of SILLK products.

4. A competitor analysis helps narrow down customer segment identification to enhance marketing and pricing strategies. Your competitors might be selling a similar or even better product, but have failed to identify the actual buyer. Is it mom or the teen aged daughter? Knowing this can really provide a leg up on the competition.

5. Most important, all of this will allow a business to craft a totally aligned and connected business strategy that can compete and identify Key Performance indicators that allow for enhanced reactive business management strategies.

These are key components of a competitive business strategy. Be sure to utilize the services of a non-prejudiced business strategist. It's easy to gloss over deficiencies in our children and our businesses. GJC Consulting can provide these services as a brief overview that will provide the entrepreneur with what he or she needs to perform the analysis alone or create the analysis and strategy for you. Operators standing by....