Analyzing your competition is one of the most crucial steps in starting your own business as well as establishing it to make profits. As it seems, nearly almost every niche has being occupied and coming up with something new is quite challenging, not to mention, the competition for every industry is getting bigger than ever. Analyzing carefully what your competition is doing and finding a loophole that gives you an opportunity to earn your market share is done through careful research, crucial observation and good knowledge.
Mistakes Companies Make While Judging Their Competition!
Doing a competition analysis gives your business multiple benefits, provided that you know how to use it properly. If executed incorrectly, doing a competition analysis would take away too much of time and resource, which may lead to wrong business decision.
What happens when you want to examine your rivals a few years from now?
Of course, everybody who has read some information about competition analysis knows that they need to go through the SWOT analysis of their own business. Doing a SWOT analysis helps you to understand the strength and weakness of your own business and figure out the best way to beat your competition.
Unfortunately, the Internet is filled with so many information on the subject, that it becomes quite overwhelming for a new entrepreneur to figure out the right way to beat their competition.
Here Are Few Mistakes Companies Make While Judging Their Competition:
- Assuming They Have No Competition – please don't commit such blunders! Claiming that you have no competition at all or anything remotely similar is a sure sign of inexperience that investors can pick up easily.
- Not Knowing The Difference Between Direct Competition And In Direct Competition - there's a huge difference between both and one needs to take both into consideration while figuring out a marketing strategy. Businesses only look at direct competition and create strategies to beat it, but fail to realize that indirect competition can also affect their business.
- Underestimating The Potential Of Competition - it's good to be positive about your own business idea, but being overconfident can sometimes make you underestimate the potential of your competition. Never do this, because you will never know what your competition is capable of when placed on threat.
- Ignorance To Withstand Changing Competitive Conditions - an industry will never be the same every time, since it depends upon several factors like the economy, living conditions, demand for the product and more.
If you have a business idea in mind and do not know how to analyze your competition, the most affordable and convenient way to get the right information is to take the help of iGoStartup competition analysis tool. The tool is included in our Basic Startup Pack and it is a questionnaire that has been specifically designed according to five competitive forces like the threat of new entrants, threat of substitute products, intense rivalry among existing competition and bargaining power of buyers and suppliers. The tool allows a person to evaluate the advantages and disadvantages of all potential competition and find loopholes, where your business can gain a competitive edge. Thousands of individuals have benefited from this tool and is one of the most affordable ways to get accurate information.