Most business owners spend a large portion of their time focused on how their own company runs. And, in the main, that’s probably a good thing. After all, eliminating inefficiencies and improving internal processes is key to business success. However, progressive professionals can also uncover useful information by studying their closest rivals. Indeed, by focusing on the competition, business owners can learn a great deal about their market, industry, customers, and, of course, their own operation. To take it a step further, here are three crucial things you can learn by performing competitor analyses:
Odds are, you and your closest competitors have a lot in common. In fact, you probably offer many of the same products, services, and features that they do. By observing how your competitors form digital marketing content, you can determine which keywords they consider to be the most valuable or lucrative. That may or may not apply to your company; however, figuring out what’s most important to your competitors will give you an idea of their business model and (potentially) their limitations.
Before any aspiring entrepreneur invests in a new company, they should get acquainted with competitor blogs. Professional blogs are an amazing source of knowledge for prospective business owners. Specifically, effective blog content often reflects the target market it was written for in the first place. For example, a blog featuring about a product for stay-at-home moms will probably list the domestic applications of said product. What’s more, many blog headlines will directly state their intended target markets outright. If you’ve ever read a blog that includes the phrase “for small business owners,” then you know how effective this tactic can be.
Market Viability & Saturation
Simple, yes, but cataloging the number of related businesses in your field will give you an indication of how difficult it will be launch your own company. Furthermore, make a point to determine when your closest competitors were founded. Breaking into a well-established market will probably prove more difficult than overcoming a handful of companies formed in the past few months.
Finding a niche within a market isn’t a bad thing –– far from it. In fact, carving out a viable business opportunity is always beneficial, particularly for new companies. So whether you can offer a unique variety of square petri dish or a cutting-edge of computer software, don’t be afraid to highlight what makes your operation special. The most valuable lesson you can learn from studying your competitors is what makes your business different. Play to your strengths and resist the urge to use the same, tired tactics your competitors espouse.