The old adage “there’s nothing new under the sun” is very true. No matter how unique your business might be, and no matter what niche you occupy, you can count on there being other companies out there doing the same thing. This makes it imperative that you are different from those competitors. How do you stand out? What do you do differently? If you’re in the dark here, a competitive analysis can help.
Conducting a competitive analysis will reveal tremendous amounts of information about how you stand out from your competitors, as well as offering information about what you can do to further those differences. For instance, you can check customer feedback (both your own and your competitors’) and find out what customers are saying about their experiences.
What’s more, you should take a long hard look at your niche and how you can use it to set yourself apart from other companies out there. For instance, if you are in the footwear industry, you might be able to stand out from other shoe stores by focusing on selling only top of the line athletic shoes, or shoes made only using green-friendly materials and methods. Your niche can be one of the biggest differentiators between your company and the competition.
Your competitive analysis also needs to include a consideration of your profit margin. If you are able to reduce the amount of profit that you “have” to make from each sale, you can set yourself apart in pricing. For business owners who are struggling here, the decision to hire strategy consultants can prove very wise. It’s very difficult to “see” where your business may be lacking, it’s your baby! An experienced strategic analyst is able to look and advise the best course of action for you.
Strategy consultants can help you drill down through multiple layers of data to define how your company differs from the competition right now. They will also help you with what you can do to further set yourself apart from others in the future.
