If you are not creating a unique business concept, then chances are your are not capitalizing on a portion of your competitors customer base. Business competition is a healthy way for businesses to optimize revenue by displaying a completely different experience, than what their competition has to offer. By setting a business plan into place, you are able to maximize your business potential regardless of your stiff competition. In example, think about the unique perspective that McDonalds offers that’s different and unique from Burger King. Although they both offer burgers, fries, and milk shakes they both bring a totally unique and different perspective to their customers.
Many successful businesses must study and analyze their competitors. The first step in beginning your competitor analysis plan is to carefully study their business operations. You may want to start by secretly visiting their location, reviewing their websites, and evaluating their annual reports.
After you’ve gathered all of the information, start looking for a competitive edge by offering unique strategies that will set you apart from your competitors. Therefore you should concentrate on a competitive analysis plan by evaluating their pricing strategies, business operations, and services/products that they sell.
So the question is, what can you specifically do to build a business competition plan that will stand the test of time?
1. Analyze your competitors target market base.
When analyzing your competitors target market, you can capitalize on an angle that they are not currently targeting. For instance, if your competitor only sells kids and adult bikes. Perhaps you could offer something totally unique by selling, skateboards and scooters in addition to bikes. This could help you in getting a “leg up” on the competition, as you have just created a unique perspective to the average bike shop.
2. Review your competition’s pricing strategy.
Although you don’t always have to begin “slashing” prices in order to beat the competition. However, you should always look for unique and crafty ways that you can snare customers with your pricing. Whether you offer special “blow-out” sales or are able to cut prices on some items, customers will continue to look for you to provide deals at bargain prices.
3. Look for more convenient ways to offer service.
There are many ways that you can offer convenience without sacrificing the quality of your service. Many customers will pay extra, just because it is more convenient. Therefore, you can rethink the way operations are usually performed, and opt to provide a more convenient way without sacrificing the quality of your operations. This is a huge way that you can potentially gain the “upper hand”.
4. Use your competitors lack of customer service against them.
Just as customers will pay more because it is convenient, they will also pay more for the service that they are able to receive. Most customers will not only want your product, but they will also desire a pleasant experience. By offering exceptional customer service, you are able to provide the memorable “roll out the red carpet” experience that your competition may lack.
5. Provide buyer incentive programs.
Offering buyer incentives is a great way to build “buzz” around your business versus your competition. You can find creative ways to occasionally offer products or services for free or at discount prices. Your customers will want to continue to do business with your due to your increasing reputation for generosity and knowledge in your field.