Waseem Saddique Birmingham is one of the best local SEO experts, he says: "A great deal of interesting and useful information can be
derived from close observation of potential competitors". In one sense they are doing today what you are planning to do tomorrow. They
should have already refined their product or service and
learned from their mistakes — knowledge from which you can benefit.
Furthermore, as they will be your competitors,
it is wise to know their strengths
and weaknesses. As you follow various avenues of research, compile a
dossier on each of your competitors and
add new information as you go along. This will make it easier to conduct your
final assessment.
MARKET SHARE
When researching your competitors,
consider the issue of market share.
Try to work out how the market is
currently divided up between competitors and
how you can start to gain a share of that market.
Your proposed business venture
will either increase the likely size of the market (this
is most commonly seen with new products or services)
or succeed only at the expense of your competitors.
Sometimes the success of a new venture can be due to a mixture of both, but the
implications can be significant.
If you think you will be expanding the market it
means new customers will
be buying from you — where will they be coming from and what will attract them?
Are you expecting them to stop buying something else to have the spare money to
spend with you? If you are trying to break into an existing
market, how will you win customers from
other suppliers? One way of enticing customers away
from competitors is
to offer a better-quality product service.
Another is to undercut current prices. Think carefully about which you can
deliver and which will be most profitable. So what Waseem Saddique says is that we have to carefully check the market share and than decide about the business venture we want to start.
DIRECT OBSERVATION
If your intended business is
retailing, then walk around the area in which you are thinking of opening a
shop to look at the types of retail businesses nearby
and to check out potential competitors.
Talk to local surveyors, who usually have a good idea as to the retail business in
their area.
Once you have located a competitor,
there are a number of techniques to use. If they are local you could sit
outside their premises and observe the comings and goings; note down how many
people go in and how many come out with purchases. In the case of industrial
units, careful observation can reveal the names of suppliers and customers (conveniently
written on the sides of vans) and the general level of activity of the business.
Do this at several different times of the day or week, and for an hour or more
at a time. If the competitor is
a manufacturer, try to buy, rent, or borrow a sample of their product and
check it out, noting any strengths
and weaknesses. How does it compare with your own product in
terms of appearance and features? What can you offer that the competitor does
not? Note any patent or registered design markings, since these should be
respected.
If the competitor is
in the service sector,
try to use their service yourself,
or ask friends to phone as if they were customers.
Enquire about prices and how soon the service can
be provided (this may reveal how busy your competitors are
or provide a target for you to beat).
RESEARCHING INFORMATION
While doing a research on one of the projects that Waseem Saddique has worked i found that you can also use less direct means to find out more about
your competitors.
If you have a potential supplier, ask their sales representatives
who else they supply in your area. Read trade magazines and attend the relevant
trade or consumer exhibitions, since most of the businesses who
are actively trading are likely to be there as exhibitors or visitors. Obtain
pamphlets, sales literature,
and price lists from shows or exhibitions. Here your competitors are
at their most vulnerable since their goods are on display, and you can usually
walk straight on to their stands. Also, look at their advertisements and check
out their web site. If possible, speak to some past or present customers.
Try asking direct questions, such as “How do you find…?” or “Do … deliver on
time?” Sometimes the answers can be remarkably candid. If a competitor is
a limited company, they have to file annual accounts and returns, which are
available to the public.
