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With the market sphere filled with similar products and services, businesses have no other option but to join the tough competition.
The established businesses often have the best of connections, solid social proofs, and top-notch experts helping with their marketing and products outreach.
New and/or small businesses, on the other hand, often don’t have these privileges. Hence, it’s often a difficult task for them to craft out space or earn authority in the sphere.
This can be tagged as one of the major drawbacks that cause many startups to shut down after a short while.
Although startups are often advised to follow the footsteps of the established businesses in the sense that “they are obviously doing something right,” most new businesses don’t have the resources or infrastructures to employ the exact same strategies of the established businesses.
Hence, there is the need for startups to come up with new ways to prove their relevance in the market. Below are 4 of such strategies that can be exercised.
- Utilize a competitive analysis
No business idea is completely new to the market, and even if you happen to come up with one, other businesses will also implement the same idea in no time. This is to say, competition to dominate in your niche is inevitable as long as business is concerned.
But then, with established businesses having more resources, experience, and connections, how can your small business gain a competitive edge, or even stand a chance of dominating similar small businesses?
By not competing with them.
Yes, effective competition can bolster growth and improvement. But what resources or experience do you have to compete with such established businesses?
What to do at this juncture, however, is to utilize what is called competitive analysis.
This involves closely analyzing the established businesses to:
- Uncover strategies that work for them.
- Crucial mistakes they have made in the past.
- Trends they are currently employing.
- Organizations and personnel they network with.
- The marketing approaches they have tried in the past, and the ones currently in place.
Uncovering the above and more about your competitors will help you to tap into the experiences they have garnered over the years.
This simple strategy is the reason entrepreneurs are always on the lookout for the kinds of books the highly successful entrepreneurs read, their morning and night rituals, their exercise routines and so on.
After uncovering the above, place your business model side by side with the uncovered facts to know which to try out first.
This is what differentiates competitive analysis from mere competition.
In competing with the established businesses, you simply analyze what works for them and then try to implement the exact same thing for your business.
In a competitive analysis, however, you analyze what works for the established businesses so you can use the whole facts as a roadmap to try out different approaches and strategies until you discover what works for your business and then you redefine it to make it even better.
Merely competing is wrong because, for instance, an established business may spend hundreds of thousands of dollars in ads while also spending Go to the full article.
Source:: Business 2 Community