Understanding how you can leverage your strengths to shine against your competition’s weaknesses will be much easier after you’ve completed a competitive analysis on your main competitors. An economic advantage is something that you can do better than other people can, therefore it’s your differentiating factor that will make you successful. Customers will pick you if you understand their tastes and demands.
You see, you don’t have to beat your competition by having the lowest price. Think about all of the products you use that may not be the cheapest buy but offer you value that you’d be willing to spend a little (or a lot) more money for. Your target market may be willing to pay more for trustworthy quality, faster shipping or just overall better customer experience. You must be profitable, sure, but driving your prices as low as possible may scare off your customers if they believe they’re not getting good bang for their buck. If your business or organization offers an experience that is unique or a product with to-die-for features or just service with a smile, your market might be willing to pay more for it than you think.
Being able to see and predict market trends comes down to understanding your customers and keeping an eye on your competition. Competitors are always trying to make themselves better too and challengers are never a shortage, so focus on what makes you business or organization unique.
These rules of thumb are especially important when you’re thinking of launching your business starting a new project, like releasing a new product or service or sending out a new marketing campaign. Use the tool below if you’re starting a new project and want to organize your thoughts. You can either print the slides or make your own online copy to reference later on.