Competition includes all the actual and potential rival offerings and substitutes a buyer might consider. This includes actual and potential offerings from industry operators, potential new entrants and market competitors.
The ability to identify and analyze all actual and potential competitors to your business is key to surviving in a fierce market place, keeps you ahead of them and helps you develop strategies to overcome them. To analyze its competitors, a company must identify its competitor’s strategies, objectives, strengths and weaknesses and then device its own strategies to overcome them. It must also have a clear understanding of the environment it operates in.
Companies are also increasingly being faced by the threat of buyers growing bargaining power and suppliers growing bargaining power. As such companies must spend time to research and understand its actual and potential customers, what they expect from them, how to exceed their expectations as well as what influences their buying patterns.
Understand that the customer is the reason why you are in business and not the competitor. Understanding the customer is the first step towards building a strategy that will keep them coming back to you. Therefore, in other to defeat your competitors you will need to:
- acquire practical skills that will enable you to understand what customers expect from you,
- exceed their expectations on product and service delivery,
- understand what drives their behavior when buying,
- understand how the environment you operate in can affect you and your competitors,
- get a clear understanding of who your competitor is and what they may be up to,
- Develop strategies that will help you attack the competitor and effectively defend your flanks.
The strategies available to a company will depend on the strength of opposition it is facing, its distinctive competencies, the expectations of its customers, the conditions prevalent in its environment, its resource capabilities, the cost/benefit derivable from the application of the strategy and its current position within the market.
This course is designed to help you effectively develop strategies aimed at overcoming competition in business.