Contrary to popular belief, having competitors is not a bad thing. Competition is useful; it helps you evolve, forces you to reinvent yourself, to remain vigilant - in short, to avoid "resting on your laurels". Depending on the business, encounters with competitors are even opportunities for exchange, sharing experience and skills. Maintaining good relations with competitors costs nothing, but can sometimes pay off handsomely. In industry, for example, companies that may appear to be rivals nevertheless each have their own specific features, which may well be complementary. Combining know-how at local or national level is a way of combating tough international competition, and can even help some companies to survive. Whether before starting out or throughout your business life, it's a good idea to look at what other entrepreneurs are doing, to avoid certain mistakes from the outset, or to adopt a new business policy along the way.
Competitive analysis during the start-up phase
When setting up a new business, it's always a good idea to carry out a market study, no matter how simple. Unless you need to take out loans and present your banker with a complete business plan, there's no need to analyze the market and its environment in minute detail.
On the other hand, gathering as much information as possible about supply and demand will help determine the feasibility and viability of your project. Favoring one business strategy over another is only possible if you have identified the expectations and needs of your prospects, and the strengths and weaknesses of your competitors.
How can you set your prices, adapt your offer to consumer expectations, know if you're competitive... if you don't know the market you're entering?
Carrying out a diagnosis of your environment means taking an interest in what's already on offer.
The study of the offer must answer the following questions:
- What products are already available?
- Who are the direct and indirect competitors (those whose products are not identical, but very similar)? How many of them are there? What are their strengths and weaknesses? What are their strategies?
- Who are the leaders?
- Why have some companies failed? Why do others succeed?
- What are your competitors' average financial figures (sales, margins, market share, annual growth, etc.)?
To get the answers, you can gather information on the Internet: competitors' websites, buyers' notes, forums, social networks, infogreffe... and in the specialized press. This information can then be supplemented by on-site research: visiting sales outlets, meeting people at trade shows, contacting neighbors...
Why meet the competition?
Meeting your competitors to find out about the market before starting your business is an essential step. But meeting them when you're already up and running can be useful too.
All markets, whatever their nature, are constantly evolving. Ignoring your competitors is a bit like withdrawing into yourself with your convictions. In this day and age, it's a very bad idea to take for granted and not challenge yourself. It's a way of doing business that has driven many a company into bankruptcy.
Meeting entrepreneurs in the same sector with the same problems should be seen as a good opportunity to learn other ways of working, to gather ideas, to compare rates, to listen to different opinions. But be careful, it's not about spying! It's important to maintain cordial relations without revealing all your secrets and falling into a familiarity that's dangerous for business.
Rule number one is: don 't denigrate your opponents. It reflects negativity, even malice. Secondly, don't engage in unfair competition. This is the best way to alienate all your competitors, who are bound to retaliate sooner or later.
Meeting your direct rivals to get to know them better and make yourself known can only be beneficial. Interesting collaborations can result from these encounters.
Not forgetting that, as in sport, competing with others is stimulating and makes you want to surpass yourself, to be the best.
Even if the economic climate is difficult and the competition fierce, the most important thing is to be able to stand out from the crowd, to offer something "extra " to build customer loyalty, no matter how many adversaries you face.