Understanding Your Competition
Business takes place in a highly competitive, volatile environment, so it is important to understand the competition. Questions like these can help:
- Who are your five nearest direct competitors?
- Who are your indirect competitors?
- Are their businesses growing, steady or declining?
- What can you learn from their operations or advertising?
- What are their strengths and weaknesses?
- How does their product or service differ from yours?
Start a file on each of your competitors include advertising, promotional materials and pricing strategies. Review these files periodically, determining how often they advertise, sponsor promotions and offer sales. Study the copy used in the advertising and promotional materials and their sales strategies.
|
