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Steps in Understanding the Competitive Landscape

1st step - Identify the Competitor

2nd Step -Understand the Competitors

3rd Step-Determine the Strength of the Competitors

4th Step-Determine the Weaknesses of the Competitors

5th Step-Put All the Information Together

  1. Identify the Competitor: For this company must answer the following question:
  • Who are the competitors?

The first step in understanding the competitive landscape is to identify the competitors in the firm’s industry and have actual data about their respective market share.

  1. Understand the Competitors:

For this company must answer the following question:

  • What are their product and services?

Once the competitors have been identified, the strategist can use market research report, internet, newspapers, social media, industry reports, and various other sources to understand the products and services offered by them in different markets.

  1. Determine the Strength of the Competitors:

For this company must answer the following five questions:

  • What are their financial positions?
  • What gives them cost and price advantage?
  • What are they likely to do next?
  • How strong is their distribution network?
  • What are their human resource strengths?
  • What are the strengths of the competitors?
  • What they do well?
  • Do they offer great products?
  • Do they utilize marketing in a way that comparatively reaches out to more consumers?
  • Why do customers give them their business?

Answers to these questions shall bring out the following secrets of the competitors

  1. Determine the Weaknesses of the Competitors:

For this company must answer the following question:

  • Where are they lacking?

Weaknesses (and strengths) can be identified by going through consumer’s reports and reviews, appearing in various media. After all, consumers are often willing to give their opinions, especially when the products or services are either great or very poor.

  1. Put All the Information Together:

For this company must answer the following three questions:

  • What will the business do with this information?
  • What improvements do the firm need to make?
  • How can the firm exploit the weaknesses of competitors?

At this stage, the strategist should put together all information about competitors and draw inference about what they are not offering and what the firm can do to fill in the gaps. The strategist can also know the areas which need to be strengthen by the firm.

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