Know your enemy

My first post was about the importance of a USP and being different to your competitors. Inherrent in this strategy is the need to understand your competitors, who they are and how you can exploit their weaknesses.

You must constantly compare your business with others who are selling the same or similar products and/or services, at similar prices to the same customers as you. These will be your active competitors. For instance if you have a beauty salon you are likely to compare your business with others that seem to getting more clientele than you and is making a impact on the community.

You should always compare your prices, products or services, and promotions. These are major factors that will help you to determine what can be implemented into your business to make it just as or more successful than your competitors.

When you do a competitor analysis it is important that you remember what it is you need to know. The following will guide you to find the right information on each of your competitors. Put a chart together and then do the same analysis on YOUR business and see how you match up.

• Who are our competitors?
• What are their strategies?
• What are their objectives?
• What are their strengths?
• What are their weaknesses?
• How do they react to competition?

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