Competition in the marketplace is beneficial to both consumers and businesses. Even if a company has an excellent internal strategy, it might still be challenged by rivals.
If a restaurant provides the greatest spaghetti in town, it may believe that business should be soaring. Shouldn’t that be TRUE…if they have the best product (in this case, spaghetti)? But, unbeknownst to them, a smaller downtown restaurant provides great pasta too, but for half the price AND has a customer loyalty program!
Without your knowledge, competitive pressures may be influencing your business. However, with this knowledge of your competitor’s strategy, you can act quickly and effectively! As a result, you will be able to soar above your opponents by employing “competition monitoring” on a regular basis.
The practice of watching all of a competitor’s movements, particularly market and product pricing, is known as competition monitoring. This allows a company to adjust its rates in response to changes in the market and competition in order to keep or acquire new customers.
Now that we have a clear understanding of what competitor monitoring is, let’s look at the top three advantages of competitor monitoring:
- Recognize the issues that your industry is facing.
It’s easy to become engrossed in the minutiae of every marketing trend and lose sight of possible industry issues or dangers to your business. Keep an eye on your competitors to learn about the challenges they’re tackling and how their audience could be reacting to them. Continuous competition analysis allows you to assess any new or emerging risks and offer a variety of responses to your customers.
- Get a better understanding of your competition.
It’s crucial to keep an eye on rivals that are comparable to your company and have the same demographics as your target customer. Take a peek at what your less direct competitors are up to and how they’re addressing your sector. It’s critical to stay on top of the newest trends from throughout your entire sector in order to maintain your position as an industry leader. TRULY KNOW your niche! Many business leaders, according to Business Insider, have devised strategies for analyzing their competition. Monitoring can also be done in a variety of ways, such as:
- Attending a conference hosted by a rival.
- Spending money on market research and reporting.
- Ask your consumers how they feel about the current state of the industry and your competitors.
3. Assists in avoiding or at the very least minimizing potential losses
Businesses might also avoid catastrophic losses by keeping an eye on the competition. You might profit from analyzing their investments or tactics that failed and resulted in a loss. By figuring out where your rivals went wrong, you can ensure that you don’t make the same mistakes.
On a final note
Competitor monitoring is a comprehensive approach for ensuring that your firm continues to function at its peak, despite external market changes. It is a way to also learn how to react appropriately to your target audience, based on the actions of your competitors. In addition to manual competition monitoring, there are digital programs available that can help you stay on top of the competition.
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