When you’re conducting a market research and especially to understand your rivalry, you aren’t doing their SWOT analysis but yours! Competitors’ SWOT analysis helps you assess your own performance in the market and pinpoint strengths to get the better of the industry.
When are you studying the report?
The business entrants cannot simply enter the industry without any knowledge about the market scenario. After your potential customers, your competitors play a major role in the market segments to impact your operations. When in your business journey the competitors’ study is conducted can determine your goal for the market research.
For example, an entrant would want to understand the audience better through competitors’ strategies and product type. An already established business may look for expansion and hence understand competitors’ customers while retaining the old ones.
Who’s your competitor?
There may be hundreds of other firms who are into your industry, however, not all of them are going to be your competitor. You need to identify who your competitor is and how the company may get affected due to their business presence. For instance, for a local fashion business, an international brand like Gucci cannot be called a competitor. Based on the location, business reach and target audience you can identify your competitor and study them thoroughly.
Strengths:
When you study your competitor’s strengths, you may find opportunities to find loopholes in it. If their strength is what overpowering your presence, you can rectify situation two ways:
● Improve your company’s performance in the same area to compete with them.
● Find your own niche strength that can outsmart their skills
● Change your selling locations where your competitors’ strength factors are more in demand and channelize your services where there’s more demand in the consumers.
The second one may seem difficult but if achieved, you can make your identity by making your strengths a unique selling point. It helps to make your business distinct from the competition. Learning about your competitor’s strength, not only does it help you understand your weaknesses but also guides you to carve your company’s recognition.
Weaknesses:
When you understand your competitors’ weaknesses, you can hit right at the weak points and make them stronger in your case. This way, marketing your product becomes easier and faster. Get the know-how of tools and sources you’ll need to strengthen your position. You could change your conversion method and guide their customers to your product by revealing their weaknesses. This can be a little tricky and trigger rivalries, although, it can potentially have a great impact if you do it the right way.
Opportunities:
You may be in the same race for grabbing opportunities in the market. Understand their public perception and evaluate yours. Identify the areas where you can work on the public perception and try improvising the same. Learning your competitor's strategy can help you frame your strategy to target consumers and optimize the opportunities before you. If there are new changes and trends in the industry, get your hang on it before your competitor does. Make sure his opportunities do not become your threats.
Threats:
You may have common threats in the industry. If you’re sailing in the boat, you need to find a way out at the earliest. Do not leave your company vulnerable to losing customers. The impact of competition and rivalries shouldn’t directly affect your business performance and your presence in the market.
Studying your competitors is perhaps the ideal way to attract your consumers through smart marketing. The whole process of scrutinizing the competitors lead you to draft the best version of your business which further can be marketed in the right direction. You simply have to find a right source for studying the SWOT analysis of businesses. Employing it wisely will create a great impact indeed. When you’re conducting a market research and especially to understand your rivalry, you aren’t doing their SWOT analysis but yours! Competitors’ SWOT analysis helps you assess your own performance in the market and pinpoint strengths to get the better of the industry.
When are you studying the report?
The business entrants cannot simply enter the industry without any knowledge about the market scenario. After your potential customers, your competitors play a major role in the market segments to impact your operations. When in your business journey the competitors’ study is conducted can determine your goal for the market research.
For example, an entrant would want to understand the audience better through competitors’ strategies and product type. An already established business may look for expansion and hence understand competitors’ customers while retaining the old ones.
Who’s your competitor?
There may be hundreds of other firms who are into your industry, however, not all of them are going to be your competitor. You need to identify who your competitor is and how the company may get affected due to their business presence. For instance, for a local fashion business, an international brand like Gucci cannot be called a competitor. Based on the location, business reach and target audience you can identify your competitor and study them thoroughly.
Strengths:
When you study your competitor’s strengths, you may find an opportunities to find loopholes in it. If their strength is what overpowering your presence, you can rectify situation two ways:
● Improve your company’s performance in the same area to compete with them.
● Find your own niche strength that can outsmart their skills
● Change your selling locations where your competitors’ strength factors are more in demand and channelize your services where there’s more demand in the consumers.
The second one may seem difficult but if achieved, you can make your identity by making your strengths a unique selling point. It helps to make your business distinct from the competition. Learning your competitor’s strength not only helps you understand your weaknesses but also guides you to carve your company’s recognition.
Weaknesses:
When you understand your competitors’ weaknesses, you can hit right at the weak points and make them stronger in your case. This way, marketing your product becomes easier and faster. Get the know-how of tools and sources you’ll need to strengthen your position. You could change your conversion method and guide their customers to your product by revealing their weaknesses. This can be a little tricky and trigger rivalries, although, it can potentially have a great impact if you do it the right way.
Opportunities:
You may be in the same race for grabbing opportunities in the market. Understand their public perception and evaluate yours. Identify the areas where you can work on the public perception and try improvising the same. Learning your competitor's strategy can help you frame your strategy to target consumers and optimize the opportunities before you. If there are new changes and trends in the industry, get your hang on it before your competitor does. Make sure his opportunities do not become your threats.
Threats:
You may have common threats in the industry. If you’re sailing in the boat, you need to find a way out at the earliest. Do not leave your company vulnerable to losing customers. The impact of competition and rivalries shouldn’t directly affect your business performance and your presence in the market.
Studying your competitors is perhaps the ideal way to attract your consumers through smart marketing. The whole process of scrutinizing the competitors lead you to draft the best version of your business which further can be marketed in the right direction. You simply have to find a right source for studying the SWOT analysis of businesses. Employing it wisely will create a great impact indeed.
- written by Gauri Ludbe
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