Strategic Advantage Through Competitive Intelligence and Analysis
In a previous article, I discussed analyzing your own company as an essential part of crafting a marketing strategy. Equally if not more important is the analysis of your competition.
Competitors can come from anywhere, even though we tend to focus on the most immediate competition. But as the classic strategist Michael Porter has pointed out, competitors can come from companies you sell to, companies you buy from, substitutes, and new entrants.
Of course, if you focus on customer benefits, as opposed to specific product or service categories or verticals, you’ll have a wider range of potential competitors vying for your customers.
For example, recall how the taxi industry was blindsided by the entrance of industry outsiders Uber and Lyft. They entered the market by offering benefits that customers wanted, including more control over the process (an app would let you see where the driver was at all times), and more manageable payment (no more having to come up with cash or hassle with the driver about using a credit card)—and, in general, an easier experience.