Knowing Your Competitors

Burying your head in the sand and ignoring who your competitors are could prove to be a fatal business mistake. With only so much money to go around in a small market like the Wimmera you need to ensure you are doing more to ensure you are getting your fair share of customer dollars.

Ensure you identify who your competitor’s are remembering that competition can be direct or indirect. A direct competitor is one that sells similar products or services, may have similar skills or have similar marketing strategies e.g. two carpet shops. An indirect competitor is one that competes for the same customer dollar e.g. an amusement park and a zoo – both are family orientated destinations hence are indirectly in competition.

Once you have identified your competitors identify their relative strengths and weaknesses and compare to your business. This may involve you becoming a customer of your competitor’s in order to experience what their customer’s experience or surveying the public’s perception of their relatively strengths and weaknesses.

Tips on competition:

Have a clear marketing focus. Ensure that you have a clear and consistent message for customers and potential customers about your relative strengths. For some it will be lowest prices, others first class service, largest range, unique services or products, superior facilities etc.

Create a culture within your organization of continual improvement. What works today or is popular now will not necessarily be tomorrow. Continually monitor what your customers want and challenge your team to be innovative about how best to meet those needs.

Always add value to the customer’s experience!

Benchmark. Create yourself a scorecard and continually monitor your performance against your competitors or if this is impractical against industry benchmarks. Benchmarks are a great way to focus your energies and ensure you are achieving excellent results.

 

Richard Kemp – Watts Price Accountants
E: richardk@wattsprice.com.au

The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.