Assessing the competitive environment is one of the essential steps in starting a new business. Analyzing competitors, an entrepreneur involuntarily studies the market in which he has to work. With the help of the information received, decisions are made that can change the future strategy of the business being created and, possibly, find a special, unoccupied niche. The main thing is to be able to correctly assess the degree of competition in the market.
Instructions
Step 1
First of all, you should take it as a rule that competition always exists. Even if there are no direct competitors at the stage of market research, they are likely to appear very soon after the start of your business. Moreover, there are always potential competitors who are engaged in similar activities and already have an established client base. Nothing prevents them from expanding the range of offered goods, works, services to your assortment.
Step 2
A guaranteed way not only to assess the degree of competition, but also to learn from the inside all aspects of a competitor's activities is to get a job with him as an employee. However, such research will take a long time. The best option for evaluating competitors is field research. Having decided on the circle of the main competitors, visit them under the guise of a potential client, monitor their prices. Choose a few days (good and bad) and estimate the traffic of outlets (offices). If possible, talk to their current or former employees. Also, analyze the main advertising media that competitors use in their work.
Step 3
It will be useful to identify and analyze competitors' suppliers, contact them and request terms of cooperation. One way to identify suppliers is to request quality certificates for products, which usually indicate the recipient of the certificate. In the future, you can contact this supplier through the Internet site.
Step 4
Try to identify the unique advantages of your competitors, for example, important business contacts, family ties with “right” people, administrative resource, as well as the presence of commercial premises and transport in the property. In a family business, close relatives are usually in positions of responsibility, and this also affects the manner of doing business, which you should know in order to adequately assess the degree of competition.
