This article is called a new competitor in your town. And discusses what to do when a stranger comes to town. A new player has overnight entered your turf and is creating noise in the market place. People like what they hear and your clients could be persuaded to have a look at their offering. This new player could be a start-up company. A merger, joint venture partnership or a new office of a major national. Whatever the new competition’s size, you need to learn. Learn how their presence will affect your operation. Never be complacent.
Beyond the noise
You need to get beyond the noise, rumour and hype and gain Intelligence. Understand their immediate and long term goals. The reasons why have they entered your market. Assuming they see you as a threat, what weaknesses can they see in your offering? And how do they intend to integrate their business into your market?
Can they compete?
You need to understand their ability to compete financially. And stick at it when the going gets tough.
Who is backing them? Someone with a prudent business mind? Or a local millionaire who can throw money at the project as they can not be seen to fail?
How are they positioning themselves in the market, and how are they going to target your clients?
What are their strengths and weaknesses, and what are their technological capabilities?
Who are the key players in the business?
Profile them, understand who much control they have in the day to day running of the operation. Where did they come from, and what did they do in their last business? Attempt to assess their values and culture.
Compare to yours
You need to look at their products and services and attempt to compare them to your own. Do they have any weaknesses in their offering, or are they more appealing than yours? Are they just copying what you do, or are they new features which could damage you? This article was called a new competitor in your town. And discussed what to do when a stranger comes to town.
How to do Competitor analysis
Step 1: Set your analysis goals
Step 2: Define your market
Step 3: Create a list of your direct competitors
Step 4: Conduct secondary and primary research
Step 5: Analyse competitors
Step 6: Summarise competitor product and market strategies
Step 7: Compare and contrast competitors with your products
Step 8: Maintain up to date competitive analysis