How much does competition affect your decisions? Your most trusted competitors might not be providing feedback on your packaging or posting comments on your blog to provide more information; however, they weigh in your decisions regarding strategy, regardless of whether you are aware or not.
What is the best way to ensure that your competitors’ strengths can’t be thought of? What can you do to avoid the pricing of your product, its design, delivery or other crucial aspects without knowing how your customer is already solving the problem that you want to ease? They could be doing it through a direct competitor, by combining a good by implementing an idea they came up with by themselves.
It is impossible to create a strategy in isolation from the adversary.
There is plenty of news media that supports the notion that the opponent is your foe. It is taught to us that adversaries are aggressive and ready to confront them on the bloody battlefield. There are plenty of instances of this happening. The top cola makers have been fighting it out since I’ve been around. We’ve seen the top two brands compete for head to head on the streets as well as in vending machines all over the nation. There have been tasting buds clashes in the shape of taste tests in blinds since it’s possible to remember.
The strategies of the two major brands need to be connected. Soda maker A cannot run an exclusive promotion to celebrate the 4th of July with two litres without assuming that soda manufacturer B would do it equally. The sponsorships of significant events as well as Super Bowl advertising are likely to be in lockstep.
One thing that is striking to me is the fact that they’ve been at war… throughout the years. They’ve fought alongside one another and built an eminent following that only a few brands could match. They’ve remained on top of the leaderboard with each other as rivals in the industry.
Although not every brand in every market can fit into this category, I think taking your competitors as enemies is an effective way of looking at the landscape of competition.
The positive side of competition
If you’re lucky enough not to be competing with anyone else, then you’re in the clear! You’re in the gorgeous Blue Ocean. That is strategy. In the Red Ocean, well, there’s still cash to be made, but you’ll need to be a little more cautious about it.
There’s an advantage to having competition:
There are other people who are educated about your market, but not totally new ideas or products which require customers to do an extensive amount of study to “get” the meaning of your product or service is about.
Your competitors are in your area and reaching out to that market through traditional or innovative media. This type of communication is excellent marketing research because now you know the is being said and what keywords to look for.
You’ve got a benchmark for pricing and features, which you can use to ask your customers their opinions on what they believe they’re receiving.
All it boils down to is your personal preference.
What makes competition good is that it pushes businesses to understand what makes them different. It is impossible to be everything to everyone. Being aware that there exist many who are in the market offering various variations in products, features and quality of service, price points, etc. This means you don’t have to.
Your enemies do you a tremendous service by helping customers who wouldn’t otherwise be a part of your model of service or require things you don’t have or won’t deliver on. If you’re an upscale sit dining Italian eatery, it’s probably not hiring drivers just because one or two customers would like delivery of pizza to the homes. Maybe this isn’t a great idea, but you’ll get the idea.
When you focus or segment the audience, you’re identifying the customers who will benefit from the kind of value they’re seeking in a way that they are able to profitably offer. Others customers might prefer your neighbour on the other side of the street.
In no way am I saying that you should turn your back on the landscape of competition and place your analysis of competition on autopilot. In reality, I’m recommending the contrary. I suggest you consume your rival’s media, then stealthily buy products and learn about their after-sales support. Be aware of your competition, and you’ll be better able to determine your distinctness.
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