Analyzing Your Competition

The need to analyze your competitor is the same in every industry.   We usually want tactical ways to get competitive information. First, however, you must start with a strategic plan. 

What is it you need to know about your competitors? 

Probably much more than just the prices. Probably more than just what their features and benefits are. It also depends on your position at your company. A CEO needs to know different things than a IT consultant who is going head to head in a sales meeting. Do you also want to know, how your competitor innovates? How do they recruit talent? First figure out what you need to know. 

Create a Corporate Template or Competition Spreadsheet

This gives you a place to capture data that comes in about all your competitors. This form needs to be available to everyone on the front lines working with clients and prospects. 

Tactical Methods of Getting Competitive Information

1. Best tactical is your converted clients. What do your clients who used to use that competitor say? Why did they convert. Have them tell you everything that answers the strategic things you want to find out. 
2. Of course web research but this is not the best. Web sites written by the competitor are designed to sell. So it is hard to know 1. Is what they are selling out yet or still in Beta and 2. What their weaknesses are except by conclusions from silence. 
3. Personally contact the competitor and ask them questions. Pose as a potential client. 
4. THIS ONE IS KEY: Assign competition champions. By this I mean: if you have 5 competitors, pick 5 people in your company whose job is to keep up with a specific company. Then as companies evolve you have up-to-date information. Regularly have them give up-dates to the template or spreadsheet. If a sales person found out that your competitor is offering a no-risk offer, the champion for that competitor is the person your sales person sends the update to.
5. Interview former employees of your competition of those you hired or those you are interviewing for jobs. Find out what the internal culture is like. Are they excited and growing or are they in panic mode. 
6. Ask targeted questions (from your strategic planning) of your network. LinkedIn is a great source for asking and finding references or concerns about a company.

There is a great article I just read called, 6 Reasons Your Business Needs More Competition.   There is a reason, Capitalism, spawns competition.  To ignore competition is to ignore your competitive advantage. 


After you gather competitive information your next step is to figure out what they will do before they do it.  I address that topic in my military strategy post:  Anticipating Battlefield Events.

Let me know how it works for you and your company.

Business Growth: The #2 & #3 Differentiators

Last time I discussed the top differentiator for a company that wants to rock in their industry.  Here are the next two.

Superior Employees

          The biggest reason my father never opened his own business was employees.  They can be either the greatest head ache or source of greatest joy.  The company I work for has a unique system.  It sets them apart from competitors.  But we didn’t start taking off until the president hired a top gun sales guy to reach our home city of Minneapolis and hired me to turn it into a national company.  On my wall I have written, “Recruiting Emerges as a Competitive Strategy.”

          As the owner of your company don’t feel that all the innovation, skill, and drive have to be from you alone.  Hiring or developing employees that can take your company to the next level is a huge advantage.  Your competition, who is not reading this magazine, is just grinding out another month of work.  Pushing their employees to show up on time and do acceptable work. 

          You, on the other hand, are investing in your business by reading Unlock Your Life Blog and searching for competitive advantage.  Great leaders don’t just lead, they surround themselves with great leaders.  Eisenhower could not have won World War II if he was the only general.  He had incredible generals and admirals working with him, Nimitz to run the naval fleet, Patton in north Africa, Bradley across Europe to Germany, McArthur in the pacific theater.  To be a captain of commerce you must have superior leadership.

Superior Operations Systems

          Finally we get to the operations, the products, and the equipment that may give you a competitive advantage.  Industry journals are a great source of companies advertising their unique machines and chemicals.  A wise business owner is not just looking at how to get more business but how to stay ahead.  Every month, our company is looking at products and services that are coming on the scene which we may want to add to our arsenal of unique services for our customers.

          When I was an infantry platoon leader in the U.S. Army I studied and applied strategies and tactics.  One key lesson I learned was I could not depend on one strategy to win all of my battles.  When I excelled, it was because I implemented a blend of various strategies and tactics in different proportions to my environment.  The same is true with your business.  Each of the unique advantages above can enhance your business.  However, you can dominate your market if you blend various advantages in varying degrees and apply it to your company.