Before launching a business, it’s best for you to conduct a comparative analysis.
Figure out who your competitors are, study their business, mode of operation, delivery channel, and how customers respond to their business.
This will help you identify your strength and how you can position yourself within the marketplace of your industry.
Let’s start by understand the definition of comparative analysis.
What is comparative analysis?
It’s the process of comparing two companies, businesses, brands, products, or services to help understand the difference between these entities.
Why do you need a comparative analysis?
It helps you understand how businesses within an industrial operates and how they serve their customers.
This is important especially if considering starting a business in such industry, it enable you have a clear knowledge about how things are being done within the industry.
These are the information’s you need to improve your business performance and deliver better services to your customer.
Then, you are beginning to identify things you can do better than your competitors. You’ll also identify your weaknesses as well, so you can improve on your weaknesses.
The first stage to conducting an effective market research is to identify your competing brands.
Buy and use their product to see how it works. Does it deliver the promised value? What are their strength and weaknesses?
Compare their performance to your performance to see the difference. Then you begin to have a clear picture on how customers will respond to your business when it’s launched.
Now that you’ve figured out who your competitors are, what features and benefits do they portray and why do people buy from them.
You can find out about all of this by visiting their websites, visit their social media pages, google them to find out what people are saying about them, and check their review pages to see customers’ feedback.
Their advertisement will give you more insight into how they position them-self and what makes your product better.
Most times when I’m invited to speak at event where other sales experts are also invited.
If any of the speakers announce selling a course to the audience, I’m usually the first person to signal that I’m interested.
Why I’m I doing this? Because I want to know the kind of content other professional’s are selling to the people.
This strategy has helped me study some of the best courses, and I’ve also seen a lot of scrap what were being sold at high price.
I will like to share a true life experience about how comparative analysis works.
There are 2 major manufacturers in my city and they both manufacture almost the same products.
Let’s call them Mr. A and Mr. B
Mr. A’s product is known by the public as the best product in the market while Mr. B’s product is not as accepted by the public as Mr. A’s product.
In other, for Mr. B to scale up his business, he had to move close to Mr. A and become his friend, not just his friend but a close friend.
This gives him the opportunity to gain insight into Mr. A’s business model. Although not much, but little enough to help him scale up his business.
And he has since then improve on his business performance. How do I get to know about this story? Because I was part of the team.
To help you get the best result from this article, solve the assessment test below.
- Write down the top 3 Competitors within your industry.
- List 5 factors that helped them attain that status.
- Write 5 practice you could implement to make your product or services widely accepted.
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