How to evaluate the degree of competition

Assessment of the competitive environment is one of the necessary stages in the organization of a new business. Analyzing competitors, the entrepreneur involuntarily studies the market in which he has to work. Using the information received, decisions are made that can change the future strategy of the business being created and, possibly, find a special, unoccupied niche. The main thing is to be able to correctly assess the degree of competition in the market.

Instruction manual

1

First of all, it should be taken as a rule that competition always exists. Even if there are no direct competitors at the stage of market research, then they are likely to appear in the very near future after the start of your activity. Moreover, there are always potential competitors who are engaged in similar activities and already have an established client base. Nothing prevents them from expanding the range of offered goods, works, services to your range.

2

A guaranteed way not only to assess the degree of competition, but also to learn from within all the aspects of a competitor's activity is to get a job as a hired employee. However, such a study will take a lot of time. The best option for evaluating competitors is a field study. Having decided on the circle of the main competitors, visit them under the guise of a potential client, monitor their prices. Choose a few days (good and bad) and evaluate the attendance of retail outlets (offices). If possible, talk with their current or former employees. Also analyze the main advertising media that competitors use in their work.

3

It will be useful to identify and analyze suppliers of competitors, contact them and request terms of cooperation. One way to identify suppliers is to request quality certificates for products, which usually indicate the recipient of the certificate. In the future, you can contact this provider through a website on the Internet.

4

Try to identify the unique advantages of your competitors, for example, important business acquaintances, family ties with the “right” people, administrative resources, as well as the availability of commercial premises and vehicles in the property. In the family business, usually close relatives hold responsible posts, and this also affects the way you do business in order to adequately assess the degree of competition.

how to evaluate niche competition