Assessment of the competitive environment is the most important stage in the strategic planning of an enterprise. This work is important not only at the start of a business, but also for the constant analysis of the current situation. It is difficult to imagine the existence of a stable and successful company without such work.
It is necessary
- - the Internet;
- - reference books.
Instructions
Step 1
Make a list of businesses that sell or manufacture similar goods or services. You can get this data from the Internet, or from thematic directories and databases of your city. The Chamber of Commerce and Industry can also provide information assistance.
Step 2
Divide the resulting list into several groups. First, identify the closest competitors that pose the greatest threat to your company. They can produce a very similar product and sell it for the same prices, while tracking your actions. The most striking example is Pepsi and Coca Cola, which over the years have duplicated each other in both their products and advertising policies. In such a situation, it is advisable to make the most complete assessment of close competitors, having studied in detail their strengths and weaknesses, advertising moves and potential prospects.
Step 3
Make an assessment of distant competitors. Draw up price charts for each type of product, identify the market share that each of them occupies. Analyze what percentage of sales you are losing because of this type of competitor.
Step 4
Evaluate secondary competitors in a completely different field. Oddly enough, for many industries, it is this kind of competition that poses the greatest threat. For example, a manufacturer of Swiss luxury watches competes with an automobile concern, since the cost of their goods is approximately equal, and the need for them is formed only by the desire of a wealthy client to demonstrate their status.
Step 5
Use competitive intelligence. If you act within the law, this method will allow you to obtain the most detailed information about this organization. For example, you can introduce an intern to a competing company. At the same time, he does not have to share commercial secrets with you and thereby violate the law. Insider data on the internal environment of the company will be sufficient for an accurate assessment.
