I was out for a drive the other day and came to a fascinating realization that driving is kind of like business. You see, when driving people typically watch the entire road. This is the same for business. Good brands monitor not only what they’re doing but what the rest of their industry is up to as well!
This is called a competitive analysis and it’s super important to keep tabs on everything going on around you, both in your business and outside it.
A competitive analysis can be general about how your business compares to its competitors, but it can be specific to a certain product too. It includes looking at factors inside each business such as what they sell, who they sell it to, how much they sell, how and where they speak to their audience, what their strengths and weakness are for the business or the specific offer, and more. A lot of industries also choose to include external factors in the analysis such as what the current technological advancements are and what is going on in society and government. The actual line items you compare can vary from industry to industry and you can be as specific or general as you’d like.
Even though reports and analysis aren’t fun, they are an important diagnostic tool for your business. Some businesses do them every quarter while others do them only one or two times a year. It depends on how much information you need and how fast your industry changes.
Not knowing where you are amongst your competitors means you’re more likely to get blindsided by something unexpected and may not be able to pivot fast enough to a change, which can take you from well-known to struggling very quickly.
So keep your eyes open and watch your industry like you watch the road!
Alright, that’s what I got for you this week. Now go be amazing!
Oh, by the way, let me know if you need any help with this. My 25 for 25 troubleshooting system is a brand analysis that gives your business a clear picture of what lane they’re in and where there might be some friction that can cause issues now or in the future. okay, bye for now!