In the severely competitive business environment of today, it very necessary and important to focus on and know what is happening in your industry. In fact it is as crucial as running your own venture optimally. Being one step ahead of your competition has many benefits and will give your business that extra edge in the long run. This can be in the areas of introduction of new products, diversification and incorporation of novel business strategies.
In the old days, it required expert business intelligence personnel to snoop on competitors to know what they were doing. Today specialised tools and cutting edge technologies have made such process very easy. Hence it has become very common to have competitive monitoring as an integral part of overall business functioning.
Here are some ways that competition tracking can help businesses.
Being prepared for the Unexpected
Your competitors may have a lot up their sleeves – new product launches, price cutting, diversification, mergers and acquisitions, optimised marketing campaigns – and these might adversely affect your business if you are not prepared with counter strategies. Any cost cutting or new launches is less likely to have an effect on you if you already have plans in place to offer better benefits to your customers. Through constant tracking of competitor movements you can eliminate the possibility of facing nasty “surprises”.
Predict competitor moves
Closely studying your competition will not only enable you to know what they are doing but also predict their future moves and strategies. This will be beneficial for you as you can always modify your business plans and take steps to create campaigns that will make your products and services stand out from others. By estimating and evaluating the customer base they are targeting or the vendors they are in contact with, it is possible to anticipate any future product launches. For example, if you think that they are likely to diversify and expand, you can tap into lawyers specialising in property development in Melbourne or in any related locations for updates as acquiring land is the first sign of expansion.
Tap new markets
When you have an effective competitor monitoring plan in place in your business, you will be fully aware of their customer base as well as their existing and expected launches. If you feel that they are carrying on a highly successful business you will understand that they have optimised their target customer base and have matched it well with their products. Based on these findings you will realise that you have not yet tapped into lucrative markets that others have. When you enter these areas with your similar products you can with clever marketing strategies, increase your market share and nibble into that of your competitors.
However, if these are in jurisdictions outside your area of operations, you have to cater to the laws of the place. For example, if your business is based in Sydney, you have to contact employment lawyers in Melbourne if you are diversifying in the State of Victoria to know the employment laws prevailing in that State.
These are some of the basic advantages of competitor analysis in the business world.