USING COMPETITOR RESEARCH AS A STRATEGIC TOOL

Sometimes, strategy is considered to be a highbrow topic for small business. Actually, not so! Businesses that take the time to evaluate their strengths, weaknesses and unique position in the marketplace and then develop a strategy to take advantage of their uniqueness are typically more profitable than competitors.

Competitor research, also called competitive intelligence or competitor mystery shopping, can be a key data gathering tool in the strategic process. Actually, it may be all that is needed externally for many small businesses to develop a satisfactory business strategy!

My capstone college course in college was strategic management, emphasizing that every business is duty-bound to understand not only who its competitors are but also their competitive strengths and weaknesses. Only then can you evaluate your own business’ relative “SWOTs” (strengths, weaknesses, opportunities, threats). Knowing more about your competitors will thus help your business grow and succeed.

Competitor research can hone in one price primarily but it may also address key issues such as customer service, promotional/marketing methods used, warranty policies, location and layout and financing options made available by your competitors.

While traditional market research is a tactical, methods-driven discipline that measures beliefs and perceptions through surveys or focus groups, competitor research uses both primary and secondary research and goes beyond answering existing questions to raising new ones and guiding action.

Contact O'Hara Business Strategies to learn more about how competitor research can be a key, cost-effective tool for developing a winning strategy for your business!