In the previous article on competitive analysis, we talked about the importance of knowing your business. We know our best competitors and how they operate, but how much do we know about our own? What areas are we good at and which are weak? These are the questions you will ask in trying to understand your business more, its market share, how competitor information relates to you.
For the next step in competitive analysis, it is now time to put the information we gathered to good use, information from our top competitors and our own business. Time for us to build and formulate strategies.
We know what the competition does and what it can still do. We know where we presently stand and where we can still go. What we need now is to formulate strategies to get us to where we want to go, how to reach our goal. How do we accomplish it is one of the steps in this part of competitive analysis.
A good place to begin is to go back to your original objective. Why did you set up this business at the first place? Was it just for fun, for profit, for additional income, was it to fulfill or continue a legacy?
In knowing your objective, you also need to set up specific goals and targets. Setting these will give you better direction, both in the short and long term. Goals and targets give you something to aim at, something which will motivate you to work hard on to accomplish.
Analyzing performance is an integral part of both strategy formulation and the whole competitive analysis process. There are a lot of measuring tools which can aid you in analyzing how well your business has performed and presently performing. Doing so will give you an idea how much room there is for improvement and what is needed to do such.