You need to be aware. There are others out there that offer the same or similar
products or services today, or could do so in the future. Scarier yet, there
are others that could remove the need for your product or service through disruptive
innovation.
By knowing your competition and being aware of the environment around you, you may
be able to predict your competitor's behavior and not be blind-sighted by their
actions.
- Who are your competitors? Are they the same on a local, regional, national and
global level?
- What are the similiarities and differences between the products and services you
offer as compared to your competition?
- What are the strengths and weaknesses of their offerings as compared to your own?
- What are key their differentiators? Opportunities? Threats?
Best of Breed Analysis
When performing assessments of current products, Karlamar Associates go
well beyond the typical comparison of product specifications. Spec sheets
present the product attributes and features that vendors want to promote, and often
do not adequately represent how well the product satisfies actual customer needs.
Linking competitive product analysis directly to the needs articulated by the customer
helps you to:
- Assess how well your competitors currently satisfy customer needs for the total
offering
- Identify needs that are currently unmet by competitors, which could become potential
areas for differentiation
- Identify the level of performance considered "Best of Breed" today, in order to
project what it will be in the future
- Identify which competitor provides or has the capability to provide the largest percentage
of the total desired offering
Competitive Value Chain Analysis
In addition to comparing product and service offerings, it is also important
to keep a watchful eye on your competitor's organization, identifying core competencies,
and determining their capability to operationalize key strategies. Some areas
to monitor include key technologies and manufacturing processes, distribution channels,
marketing and sales strategies, partnerships and alliances, management culture,
critical skills, infrastructure and financials. This information is
valuable when trying to predict future competitive behavior.
Technology Roadmapping
To stay competitive, it is important for you to track relevant technologies,
including what needs they satisfy, how they are applied, who is applying them and
how they change over time. This not only provides a current and historic perspective
of the technologies, but may also provide insight to predict future competitive
behavior and trends. Technology roadmaps help us to envision the possible
futures available to decision makers. The roadmapping process also provides
a means to identify, evaluate, and select technical alternatives.