A speedy downfall for many organisations is competition. Even though your business or brand may be offering an incredible product, if the competition does it better then your product may die out. Knowing who your competitors are, in addition to having an understanding of how you compare with them in the consumer’s eye, is a vital part of creating a great digital marketing campaign.
How to know what your competitors are doing
An easy way to know what your competition is doing is by researching it. Various market research solutions can offer you the information you require order to stand out, be different as well as be better.
Having an understanding of both your direct as well as indirect competition will determine if your business model can remain at, or claim, the top spot in your market. Alternatively, understanding your competition well will allow you to make a decision about whether or not anything in your company must be altered to do so. Evaluate the market to identify both key players as well as those who are on the rise.
When ruminating about your current as well as potential competition, a quick way to answer the basic questions is to refer back to Porter’s 5 Forces Model which is a concept that is discussed in almost all marketing business classes.
- Threat of new entrants
- Threat of substitute products or services
- Bargaining power of customers
- Bargaining power of suppliers
- Supplier power
- Competitive rivalry
Threat Of New Entrants
Your market position can be influenced by people’s ability to enter into your market. So, think about how simple this could be done. How straightforward is it to get a grip in your industry or market? How much would it cost and, in addition, how tightly is your sector controlled?