An important element of strategic analysis is to look at the competitive environment - what your competitors are doing, where the next technological developments are coming from and the general directions the market is moving. A competitive and environmental analysis of your markets should include all the key influencing factors that affect the way in which you can compete. A competitive review is important for two reasons.
Firstly, even if you know what the customers want and have the resources to meet the customers' demands, it may be that the competitive environment means that it is not worth pursuing particular parts of the market for a whole range of strategic reasons, such as the threat of a price war, channel conflict or legal or ethical considerations.
Secondly, you need to know if your competitors are doing things better than you are or more importantly, whether they are looking to change the basis of competition in the market, for instance by moving to a direct sales model or by introducing some revolutionary new product or technology.
Another important factor is Benchmarking. It is used to ascertain how well you are doing against the competition.
One common issue that comes from looking at the competition is what do you do about it? The options are:
In practice, if there is merit in something new and you ignore it, it is likely to bite you later. If you fight against it, you add to your costs potentially just to save market share, rather than to win market share.
At Pammvi Consultancy we keep in mind all the above stated factors and carry out comprehensive competition analysis so as to provide you with exceptional information that can benefit your business.