Raise your hand if you have ever heard “comparison is the thief of joy.”
Hopefully everyone has their hand up. Because it is. Comparison is a fun little game that our saboteurs like to play with us to ensure we play small and stay stuck where we are.
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This is not what we are talking about today. There is something in business that’s called a competitive analysis. While comparison is the thief of joy, competitive analysis is necessary to keep your business moving in the right direction. Not doing competitive analysis is similar to operating like an ostrich with your head stuck in the ground. It’s really hard to run a business in that position!
Let’s start easy. When was the last time you did a quick assessment of who your competitors are? If you haven’t taken a look in a while or have never taken a look, now is the time. How do you do that?
- Make a list of your primary products and/or services.
- Find companies that sell similar products and/or services. It is important to search locally and nationally. We live in a global economy so it’s necessary to be aware of what’s going on in the entire competitive landscape, not just who lives in your geographic location.
- Next, consider non-traditional competitors. For instance, if you sell consulting or coaching services, a non-traditional competitor is your target audience spending the time to research, study, and learn everything on their own vs. seeking assistance and short-cuts. Or, if you are in the dry-cleaning business, do-it-yourself at-home products like Dryel would be a competitor – not just all of the other dry-cleaning businesses in town. Likewise, choosing not to take action at all is another non-traditional competitor.
- Once you have your list, create columns for all of the areas you feel create points for competition within your industry. Things like price, quality, convenience, experience, return on investment, the sales process (is it easy or hard to do business with them, is it easy or hard to do business with you), primary marketing strategies, etc.. Product and service reviews, customer surveys, social media groups/discussion boards are all good sources for understanding why people buy and why they are loyal to specific companies. It also helps you understand how they make buying decisions.
Great! Now you have this information laid out in a way that you can see where you fit into the market place. Now what? Use this information to create a mini SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Now you can figure out areas of opportunity and how to position yourself within that market place.
This is not a one-time exercise. I used to say it should be done at least annually. In a world economy that is shifting and changing as quickly as ours is right now, I would recommend doing this quarterly.
So, that’s your competitors. What about the health and wellness of your industry? I just referenced the fact that everything is shifting so quickly right now. I mean, who knew that the restaurant industry and even our public and private school systems could be shook to their core. Both of these industries have been around forever. Yet the COVID pandemic has shown that even the oldest industries are not immune to crisis.
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What’s the value of understanding your industry?? Anticipation. And anticipation is power. Say it again. Anticipation is power.
Why is it power? Why does being able to anticipate what is happening with your competitors and with your industry and with your own company put you in a power position? Because it helps you figure out what business you have to be in to have a competitive advantage, what irresistible offer you need to design, and what you need to do to be prepared for the next season. Change in any of these areas can trigger crisis. Crisis demands shifts and pivots to survive. If you aren’t in a state of actively anticipating, you won’t be able to shift or pivot in time.
If doing this analysis indicates it’s time for a shift or pivot, how do you figure out what shifts or pivots make sense? You ask questions!! Here are some.
- Where am I gaining ground and how can I increase it even more?
- Where am I losing ground and how can I slow the loss or eliminate it completely?
- What am I not doing that I should be doing to close the gap between me and my competitors?
- Based on what I’m seeing, what are some things I can anticipate from our industry and my specific competitors? How will I respond to each?
- How are customers’ expectations different today and how are my competitors meeting those expectations?
- What do we need to learn, who do we need to hire, what do we need to change to remain relevant and competitive?
Of course, this list is not exhaustive. These are just some questions to get you started.
Like most of business, this is not rocket-science. Its stuff you know intellectually. And while most people think that knowledge is power. It isn’t. Knowledge is useless if it isn’t applied and used. So don’t just sit there and go, “I already know this. This is a waste of time. I really don’t have to worry about competitors because there is plenty to go around.” Which is true. There is plenty to go around. And, if your business is not the size that you want nor growing at the pace you want, looking at what is happening within your competitive landscape will give you clues on what needs to be addressed next.
Do the mini-competitive analysis. Figure out which questions you should be asking, the things you should be reviewing, and the evaluations you should be doing that are relevant to your specific business, industry, and competitive landscape.
After your analysis, identify at least 1 thing you can implement, 1 change you can make, or 1 thing you can anticipate that will make a competitive difference for your business and take action on it. Then review for effectiveness. Give it a good 90 days of effort and then evaluate. Rinse. Repeat. Apply what you learn. Because anticipation and the application of knowledge really is power. The power to sustain and grow your business. The power to serve others. The power to create the business of your dreams.
STACY OLDFIELD
After nearly 25 years in Corporate America, Stacy launched Minerva Management Partners as a way to combine those years of business experience with her life coaching certification and love for coaching women. Minerva Management Partners is a business coaching practice designed to support women entrepreneurs committed to launching and growing their business. Also, as a Results Coach with Robbins Research International, Stacy helps business women to focus their ideas and efforts and holds them accountable for achieving their goals. Whether it’s helping women discover creative solutions to their business challenges, coaching them to be clear and decisive, or helping them see and take action on new opportunities, Stacy guides them to achieve the business and career results they are seeking. Stacy is also the creator of the Minerva 3-Day Networking Challenge and the Network Like a Boss Lady On-Demand training program. Stacy has been invited to speak to many audiences within South Carolina including the Center for Women, Women Entrepreneurs of Charleston, the Women of the Workforce program of the Naval Information Warfare Center (SPAWAR), Charleston Women in Business, Association of Fundraising Professionals, SCANPO, graduate classes at both The Citadel and the College of Charleston (CofC), and Leadership CofC. She currently serves as a mentor through the Women of Excellence Program at Xavier University and previously served on the Board of Directors for the Beautiful Gate Center and on the advisory board of the SC Women’s Business Center.
