So you just started your business, but the problem is that you’re in the Red Ocean Market instead of being in the Blue Ocean Market (ROM – A lot of businesses in the same business; BOM – Only a few in the same business), and now you have plenty of people in the same neighborhood competing to sell the same thing. In this article, we talk about identifying your competition, what products they are selling and evaluating them. Why? Because knowing what you’re against is half of the battle to get to the top. This is going to be your edge: Market Awareness
As a part of conducting a competitive analysis, these are the important questions you’ll definitely want to answer:
- Who are your top competition? List down the top 3 to 5. Be honest.
- What services and products are they selling? List their top 3 to 5 also.
- How much do they sell/charge?
- What’s their marketing strategy like?
- What sort of media are they advertising on?
Now that you’re able to answer these questions, it’s time to make a competition chart. In this way, you’re able to evaluate your competition for both the opportunity that you view and whatever threats potentially they give your business.
- List your top 3 to 5 competition on the left side of your chart. Think about what your clients/customers will buy if yours wasn’t available. Easy, right?
- Now looking at the top, list down the main features of each services or products, their pricing, customer service, type of support they provide or any offers that they guarantee to their buyers.
Now would be a good time to assess the entire marketplace once you fill out the chart. By this time, you should be able to identify where your products or services fits in the equation of the entire marketplace. It’s very important that you’re aware of this and updated so you become the most proactive person in your market, instead of being the most reactive person.
Alright, that’s it. If you think you found value in this, please do share this blog to your social media accounts and tag a friend. I highly appreciate it.
Question of the day: How many businesses do you identify as your competition?
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