Identifying who you are competing with in the field is something that’ is crucial to your success- not only will you be able to pinpoint who your rivals are, but studying their strategies and understanding how they operate as well can get you one step ahead of the game. This form of analysis, called “competitive landscape,” can help you formulate new ideas that will surely stand out in the market as you carefully study the competition. This can also help you determine your strengths and weaknesses more which will push you to improve and do better.

A competitive landscape starts with identifying who your online and offline rivals are, and what their impact is on the market.

The Importance of Competitive Landscape

  1. Studying what your business rivals do can help you understand how your startup idea is different from theirs and what value proposition it brings to the society. This can help you modify and formulate unique ideas that can strongly sell out in the market. You can also create new strategies that can sharpen your overall performance by giving your business a distinct trademark which would totally differentiate it from others.

  2. A competitive landscape also helps you understand USP and key differentiators with respect to your business model, revenue model and all other relevant aspects of business.

  3. This form of analysis will lead you to figure out what the competition’s edges are. From there, you can focus on building solutions to boost your performance and eventually gain a bigger client base.

  4. Studying your business opponents can also give you a better knowledge in terms of startups and its positioning in the market (stage, market share). This will also help you gain a deeper understanding of basic business factors such as price, quality and service.

  5. A competitive landscape also helps an investor identify the current positioning of the startup in the market, leading to possible investments in the future.

The Process

  • Start with identifying the competition:

    Who is the business competing with? Consider both relevant direct and indirect competition, taking its nature of products and services into consideration irrespective of their size, popularity, and area of operations.

  • Understand the competitors:

    Why are they competitors? Try to see whether your business is similar to theirs in terms of operations, or if your business is sub-business of an already existing company.

    Here are some parameters that you can consider for analysis:

    • Background – A little history about the company would help you understand its current position in the market. Try to check what sparked the idea to start the business, its timeline of improvement, and its present standing in the field.

    • Product offering and services – Study how they operate and what strategies they incorporate with their products and services. Know what makes them stand out.

    • Geographical presence – Understanding where your competitors sell the most can help you weigh and identify the audience’s possible reaction to your startup. Locate which places can help you sell the most – this can also help you understand your audience’s needs better.

    • Target Customer and Market – Try to see which target market responds better, then identify why.

    • Traction or key metrics – How effective are they in terms of achieving their objectives?

    • USPs – What makes them different from everyone else?

  • Analyzing the information:

    After compiling the information necessary, understand and analyze how your startup is positioned in the market and what makes it totally different and unique from the rest.

When it comes to business, it is of utmost importance to drive shareholder value, which is best achieved by having your business laser-focused on meeting the needs of your target audience in the fastest, and the most efficient way possible – making your business the best in the field. See which factors have to be improved, and try to innovate more strategies with your team to improve the overall performance of your business.