Many new business owners and startups, once they are up and running, forget to do one of the most important things any new business can do: a competitive analysis. Competitive analyses can be painful because they hold a mirror up to your business and let you know how you fare concerning your competition.
Performing a competitive analysis of your brand, however, is necessary and, thankfully, quite straightforward. If you want to know what kind of competitive position your business and brand is currently in, below are the steps to follow when conducting your analysis.
Know your competition
It can be disheartening for a new business to find out that they are merely a minnow in a sea full of well-established sharks, but knowing one’s competition is essential. The first step with any competitive analysis is to develop a list of the companies and/or individuals you are competing with for market share.
One of the easiest ways to find out who you are competing with online is to do some simple keyword research on Google. Many new business owners and startups, once they are up and running, forget to do one of the most important things any new business can do: a competitive analysis. Competitive analyses can be painful because they hold a mirror up to your business and let you know how you fare concerning your competition.
Performing a competitive analysis of your brand, however, is necessary and, thankfully, quite straightforward. If you want to know what kind of competitive position your business and brand is currently in, below are the steps to follow when conducting your analysis.
Know your competition
It can be disheartening for a new business to find out that they are merely a minnow in a sea full of well-established sharks, but knowing one’s competition is essential. The first step with any competitive analysis is to develop a list of the companies and/or individuals you are competing with for market share.
One of the easiest ways to find out who you are competing with online is to do some simple keyword research on Google. Look at the websites and pages that appear near the top of the list (especially the coveted first three spots). Those are the businesses you are competing with.
Refine your list of competitors
The first group will be comprised of the people and businesses you are currently competing with. You should be realistic about who these businesses are. If you are a new entrant in the industry, you are not going to be competing with the industry giants just yet.
That is what your second category is for. These are the competitors you would like to one day compete with. Competing with the industry leaders means you too are an industry leader, which is likely your eventual goal.
Understand the different brand elements out there
After you have figured out who you are competing with, you are going to want to develop a profile of each business, from their slogans to their colour schemes. The goal of this stage is to uncover similarities and differences which unite and separate them all.
It is a good idea to make yourself a spreadsheet in Excel here. The categories across which you are evaluating these businesses might include things like: threats, strengths and weaknesses, vision, mission, and values, brand promise, etc.
Write down how you see your brand
Any successful business knows what defines it, and what its essence is. During this step, you will do what you did previously for your competitors (articulate the brand elements), but this time for yourself.
The goal here is to find out what you want to do as a business, and what you don’t want to do. You should look at what the brands you aspire to be like are doing, as well as delineate what you are going to try and avoid (e.g. compete on price with certain brands).
Pin down your niche
Trying to do everything, and be everything to all people is a losing strategy. You want to find a niche where you can provide value and excel in that space. One of the best questions you can ask yourself is “where is there a problem and how can I solve it?”
Where are you going to fall in terms of cost and quality? Are you going to beat the competition on customer service, or will you automate the best, most efficient process in the industry and beat the competition out on ease of use?
Your competitive analysis should be done critically and to find out who you are as a brand and why people should choose your product and/or service over the competition. To do it well requires that you be completely honest with yourself, but done correctly, it can position a new business for success right out of the gate.
Keep the above brand competitive analysis steps in mind and understand what makes your business unique, and how you are going to carve out your share of the market.
