Competitive Intelligence: Information Is Power
Understanding your competition is a basic necessity. No, it’s not spying — but it’s not just market research, either.
Why be a sleuth? Accurate information on competitors can help you measure demand, identify opportunities and threats, improve your value propositions and differentiate your offerings. At a higher level, understanding competing firms can help you define your own strategic direction.
Here are some key questions:
- Who are your rivals? Some you know, but what else is stirring? Is a Fortune 500 giant, or one of your vendors, looking to start a line in your backyard? Few printers expected to confront FedEx (with Kinko’s) as a major competitor.
- How does a competitor operate? How do they make their money? You won’t pit your quality brand against their economy line, but how will you resist price pressure? Information can help answer these questions.
- How do they acquire and keep customers? What delights their buyers? Could you do that? But while you’re looking at their customer list, they’re looking at yours — so identify your high-value trade, and defend it.
- How are their supplier relations? If it comes down to your supply chain versus theirs, is yours reliable? Or are you risking disaster?
- What’s coming? Are new players and new technologies entering the market? How is your competition planning its future?
For answers, look in-house first. Get the word out in orientations, performance reviews, staff meetings and newsletters. And set clear ethical guidelines.
Old-fashioned research can turn up gems. Marketing and human resources personnel may know much. Surely new hires learned things in the round of interviews they just concluded. Then talk to your vendors, sales reps and clients. After every proposal, win or lose, ask about the competition’s selling points.
Modern competitive intelligence delivers market advantages. If you’d like to discuss some ideas, our firm can help.
For more information about our services to inventory based businesses,
Contact: Mark Walker, Partner, Director of Inventory Based Businesses Practice at 817.882.7724.
The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.