What do companies do to stay competitive?
Starting a business is like entering a perpetual race:
You have to keep pushing forward, or watch your rivals overtake you.
We’re in the business of competitive intelligence, which is a common tactic to mitigate the risks from competitors.
But what else do companies do to fend off surging startups – or overtake incumbents?
Know your competitors
Competitive intelligence is really just a big term for a very basic human impulse. The first prehistoric settlers to shift from a nomadic existence to farming must have looked to their neighbour’s fields to learn from their successes – and failures.
Whether your understanding of your competitors comes from a simple check of their websites (or a visit to their stores) or a systematic review of the competitive landscape, you can learn valuable lessons by paying attention to what your competitors are doing.
Key questions to answer include:
What products/services are our competitors focusing on?
What are customers/reviewers saying about our competitors?
Where are our competitors opening new stores?
How are our competitors positioning themselves in their own marketing?
Look after your existing customers
This may seem obvious, and all businesses like to think they are obsessed with pleasing their customers, but many companies lose sight of their customers because they devote more energy to winning new business.
Your existing customers are your competitor’s prospects.
Every day, there are teams of people working tirelessly to tempt your customers away.
Instead of letting your existing customers drift away – and inflate your competitor’s profits – you should devote more energy on customer retention.
How can you prevent customers from walking out the back door as you entice people in the front?
Meet new needs
Are there any gaps in your offerings? Are there opportunities to meet more of your customers’ needs? Expanding your portfolio of products and services is an effective way to broaden your reach and capture more of the market.
Target new markets
Does your company currently serve a limited range of customer groups, or locations? Could you move into new territories, or cater to a difference group of customers – or industries?
Explore emerging opportunities
Technology is constantly changing the limits of what is possible. This provides a constant stream of new opportunities. You may find that new services or products are engendered by new technologies. Or you may find that changing trends or attitudes create new opportunities in your market.
Competitive intelligence is the common thread
Knowing more about your business environment is empowering. Knowledge can help you dodge risks and capitalise on opportunities. And this knowledge is useful whichever tactic you employ to remain competitive.
Want to know more about competitive intelligence?
Aqute Intelligence has spent more than two decades helping companies around the world to answer difficult questions about their industry. Our insights shape strategies, influence policies and give operatives the data they need to act with confidence and clarity.
