A business isn’t always alone. Competitors, rivals, peers, and collaborators exist. And it’s critical to have these, for, without them, companies are prone to failure due to not having data. Competitors are important for a market to flourish, and businesses will do well to learn from their peers. Below are more reasons your business should know its rivals.
Gain Insight on Your Advantages and Improve Your USPs
As a startup company, remember that you are studying your competitors to know what to improve in your own business. Perhaps you’ve found a flaw in their website design wherein they do not interact with their clients or make transactions inefficient. You can then take this as a cue to be more proactive in reaching out to your customers and finding out how to make their experience better.
If your unique selling point is your user-friendly web design, push that to the next level by complementing it with a mobile app. You can partner with a reputable mobile app development company to achieve this. This way, your customers can have a more seamless multi-platform experience. Many major companies have complemented their stellar service with intuitive software design to give their clients the ability to contact them or make transactions more efficient.
Minimize Risks and Learn from Their Mistakes
Many have heard the saying, “we learn from failure, not from success.” It’s a quote often attributed to Dracula. But while businesses have very little to do with the literary vampire, the saying still holds water. However, it doesn’t necessarily mean it’s you who needs to make a mistake. Many businesses within the same industry, especially ones far older, have gained their experience through countless trials and errors.
Your business might be the same, going through many experiences, both right and wrong. But learning from others’ mistakes grants you the benefit of never having committed them. Take the time to learn the history of your industry and see where others went wrong. Perhaps a spark of success is there, but the execution needs working on. It is through analyzing the market and its history where you will find the secret to success.
Figure Out Your Indirect Competition
If you are within a niche business and you think you don’t have any competition, try thinking more critically. More often than not, people mostly see competition as those being within the same industry as theirs.
However, competition can also come from other businesses tangentially related to your business. Take being a graphic artist, for example. Competition for graphic designers doesn’t only come from within the same job title. Various types of artists, both digital and traditional, can offer similar services and products. Therefore, competition can be tight.
Meet Customer Expectations Better
Clients and customers have a set of expectations from the services they choose to buy. Normally, the expectation is set by what the establishment advertises as their products or services. But often, clients have different impressions of how a service or a product is delivered. By studying your competitors, especially ones in the same industry, you’re gaining insight into how these clients actually use the product you’re offering.
The other businesses likely offer services within a specific price range or a particular level of quality. Clients can assume this is the typical market rate. By knowing such matters, you can better temper your services to match the expectations of your target segment — if not exceed it. Your business can modify and enhance accordingly, making your services a lot more appealing to customers.
Find Holes in Your Own Business
Business owners can find mistakes through objective and comparative analysis, but looking at your own isn’t enough. There has to be a standard to compare your performance against. In the case of businesses, it’s best to compare against the best. Look at the market leader in your industry and compare your strengths and weaknesses. You’ll realize the holes or mistakes your business is making that the market leader is succeeding at.
Once you find that, you can pinpoint whether it’s an issue within your company or a particular skill of the competition. Your industry peers might be offering higher quality services or a better variation of your product, or they might even be leveraging their marketing drive better than you’re using yours. Always compare and contrast with others. It’s not about who’s doing better; it’s about finding the points you can improve on.
Young businesses often focus too much on market research. However, it shouldn’t be the only thing you study. It pays to take a closer look at your competitors, so you can gain insight into what practices are effective and what aren’t.