Starting or Reopening a Small Business? Know Your Competitors!
Armando Ojeda, Co-Chair of the Southeast Michigan chapter of SCORE, was recently interviewed by Lending Tree to provide expert analysis from a mentor's point of view regarding the importance of small businesses—whether just starting up or reopening post-lockdown—doing thorough competitor analysis.
Competitive analysis is the careful, systematic examination of the companies that offer the same or similar products and solutions as your business. Proper analysis of the competitive landscape is necessary to growing a business and making it stand out. And make no mistake: Even if you’re not analyzing your competitors, they could be watching you.
“You have to know who your competitors are and what services they’re offering so you understand where your service fits and whether it’s truly feasible for you to become a business in that space,” said Armando Ojeda, a Detroit-based mentor with SCORE, a nonprofit that provides free mentoring to small businesses nationwide.
The in-dept article examines the strategy, the process and the likely positive outcomes behind business owners knowing who their competitors are, chronicling their strengths and differentiators relative to that competition, and knowing how to outperform them for customers. Among the many issues the article raises is how and why to conduct a competitive SWOT analysis:
A common way to conduct this competitive comparison is a SWOT (strengths, weaknesses, opportunities and threats) analysis. This framework will help you identify the threats and opportunities in your industry at large, as well as the strengths and weaknesses your competitor has when facing those market conditions. Ojeda calls it a fundamental first pass, in which each quadrant should produce action items that help you grow your business.
Read the entire article here.