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Business competition situation
Competition in business environment is inevitable. There are many companies produce the relatively similar product or service and distribute It at the same market.
I illustrate how tight is business competition in the market, and show you with the real world condition. You can see at supermarkets near you, they are in very tough competition with each other just to deliver the best value and the best offer for their customer in their same area.
Consequently, they compete strictly to entice more customers. There are several strategies they run, such as: offer larger range of product, offer the best price by running competitive pricing strategy , build more convenient place for consumer, perform personal marketing approach, develop customization of product or service, try to give the most quality post-sales service, and so on.
Every firm must meet and deal with very tough competition in business. However, there will always be opportunities behind this condition.
How to win the competition? First of all, you have to understand one of the subject in marketing theory, namely competitor analysis or competitive analysis study. Then you can implement the theory in your business activities.
Survive against competitor by performing competition analysis
By performing competitor research, you can identify better strategies for winning the competition in this turbulent time.
These strategies can be developed based on what type of product or service you deliver, the location, who your competitor are, etc.
You have to possess positive thinking. Just put in your mind that tight competition keeps you hungry for innovation. It forces you find new method, new tactics, new product or service, and gain the newest competitive intelligence and related knowledge.
To survive from this situation, all you need is comparative research and analysis knowledge and skill. After that, you must implement the theory in your real business ecosystem.
For the purpose of that, therefore I am writing this article.
Why conducting competitor analysis and study is important?
You have to perform competitor review and evaluation because:
1. You must know who are the main player in your target segment.
2. You must be prepared for the environment and business ecosystem’s changes.
3. To understand more comprehensively what the is the exact competition and how to compete with them.
4. To define life-cycle product or service ( business ) stage, like: emerging, growth, mature, saturated, declining.
5. To gather the correct information, so that you can decide which value added ( competitive advantages ) you can deliver to your target market.
How to conduct competitive analysis?
Before getting more detail, I show you the general ideas. First of all you have to be able to identify the exact competition in the market, then gather the correct information that you need, afterwards run competitive assessment based on data you gather, final step is drawing a conclusion.
In competitive assessment step, you need to answer several questions, they are:
1. Where do the consumer purchase the similar product?
This includes distribution channel, online store or offline store, outlet location, local or global ( international ) delivery, etc.
2. Is there opportunity for my product in this segment market?
The object that you must assess here are: product quality, product distribution, price, product differentiation, brand recognition, new product development, financial capability, quality of management, quality of service, market share, and so on.
3. What competitive advantages do my product deliver?
You must do a benchmarking your value with your competitor in competitive advantages exploration stage.
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