How often should I look at the strengths and weaknesses of competitors?
Malcolm says
It’s easy to spend too much time trying to second guess competitors plans when quite often even they are not clear about them. However, it is important to know enough about competitors to clearly position your company and products. To me the best way to do this is to ask existing customers and people who you would like to be your customers. Questions to understand could include: Are there things that you like about our competitors that we don’t do? What is it that you like about us and why do you stay with us? It’s also important to understand what alternative ways they could spend their budget and what their business strategies are. “Competitors” are not just companies with similar products or services.Often questions like these are akward for companies to ask for themselves. Get outside help to find the best ways of getting to the answers.
When you start asking these types of questions you gain valuable information from a customers perspective that you can use to modify your sales and marketing plans or even your overall business strategy. You will most probably learn that customers care about a range of things that you will have never considered. To you they may not necessarily be logical or sensible but they are factors that influence buying decisions. One real example that I discovered was the customer who liked the way that their supplier broke down the details on the invoices because it made it easier for them to internally recharge. That was the only reason why they stayed with that supplier. This led to the no brainer decision of don’t change the invoicing system and see if it is, or could, be an important differentiating factor for other customers.