To map growth opportunities, use Competitor Profiling
You may have heard the expression “Know your enemy” before. In business, it is equally important to know your competition. You can gain a competitive edge when you decide which path to take for your business.
How important is it to profile your competitors?
Being a step ahead is a key part of business success. It doesn’t matter how much you know an industry or company, and it is important to keep up with the trends in your industry.
It is important first to outline your knowledge about your competitors. What are their strengths and weaknesses? What are their weak points? What are their vulnerabilities? What are their threats? These are just a few questions you can ask to help profile your competition.
A SWOT analysis’s strengths section focuses on identifying the positive characteristics of a company. This section is important. It would help if you were honest with your self. If you want to see results, you will need to believe in what you are doing.
It might be worthwhile to look at the work of other companies in the same field and compare it with yours. You should think about the reasons your competitors are successful in a particular area.
Are they lucky? To have more resources and staff? Are they more innovative than the rest? This will allow you to see how far or close your company is.
This is where you will identify the weaknesses of your competitors. This is more difficult than identifying their strengths. You might have to think about what power they have in order to identify their weaknesses.
Are there any things they do that you could easily duplicate (or too easily)? Do you think you could replicate their success and make it better? They may have some weakness if they have been in business for a long time and they have never received a positive review.
This part of the SWOT analysis will help you to understand which areas your company should be focusing on when evaluating your competitors. It will be a great tool to help you evaluate your current strategy.
This section is the most difficult.
It’s an important part of a SWOT analysis. Without understanding your competition’s current activities, you won’t be able to capitalize on their successes.
You may be successful in one area but not another. That’s OK! This information can be used to help you identify areas where you need improvement. But for now, focus on what your competitors do well and the opportunities they provide. You know that even if your competitors excel at marketing, their products may be sub-par. If you offer better quality, they will switch to your services.
This section of the SWOT analysis can help you get new ideas on how to improve upon what is already popular with customers. It may even inspire some innovation.
This section will help you think about what your competition is doing well and where there might be positive changes in the future. You may be able do similar things to your competition, so keep an open mind!
This section is the last of a SWOT analysis. This section is all about identifying potential threats. Threats could come from any source, including another company offering you a new idea or your customers hiring your services to do some work for them.
But, notice the difference between opportunities and threats?
Threats refer to things that could actually happen. Opportunities are about what will happen when you do something.
Remember that not all of the risks you identify will be realized. Only identify those that could have a real impact on your business’ success and profitability to get a clear picture of what is happening in the world.