Someone recently told us that they didn’t just want to be better; they wanted to be the best in the market.
Context is everything when you are trying to define what the best is. Understanding who your competitors are, not only from your perspective though from your end user’s perspective, is critical.
We’ve worked with global businesses that have become fixated by a predetermined set of “globally defined” competitors. In doing so, they have been blindsided by a more agile local competitive set while reporting on how they’re comparing to the predetermined set.
We’ve worked with smaller businesses who have become obsessed with what the competition is doing, and every time one of their competitors does something new, they respond. This can cause significant disruptions in their businesses and can be a distraction to delivering your strategy and results.
While these are extremes, what it does highlight is that understanding your competitive set is essential. Having a considered approach as to how you plan to respond is equally important.
There are three questions to have clarity on, to understand if you are better or best in the market:
1. How do you define your competitive set with a growth agenda in mind?
2. What is your approach to staying informed?
3. How do you know when to act and when to be watch and wait?
It is important to note that the last point can be multifaceted in response. It doesn’t always have to be seen as a head to head in market reaction; it can inform and improve your business, product, or service.
Competitive analysis doesn’t need to be an exhaustive piece of work though it needs to be current and considered. It is often the missing piece of the puzzle for businesses as they grow.
We work with our clients on helping to define their competitive set and put disciplines in place to help guide when to act and when not to. If this is something you would like some support on, please get in touch with us.
