Do you know what your competitors are offering your customers? If
not, you can't be certain that they are not being lured away by other
businesses offering a better deal.
The competitive advantage
Being aware of what
the competition is doing has advantages beyond knowing what's on offer to your
customers. If you operate in a market that is growing then winning business
from your competitors could be your best expansion strategy. You can learn from
your competitors by considering how they approach the market or the different
types of customers they pursue and you can learn from their mistakes and avoid
costly ones of your own.
Beware though, stealing confidential information is illegal and
hiring an employee from another company in order to find out more about their
business can also land you in hot water. Instead, stick to publicly available
information and network with your fellow business people.
Be sure to use the information you collect to be creative to stay
ahead of the competition. Avoid being too preoccupied with collecting
information or you could find yourself one step behind. Use the information to
analyse the threats to your business and opportunities in the market.
Information on your competitors' activities can help towards a simple SWOT
analysis, for instance. This is where you list the strengths, weaknesses,
opportunities and threats to your business. It helps you understand your own
market position and highlights the potential for future developments.
