Competitive Landscape – Win, Place, or Show? Part 2 of 2
As a reminder, in Part 1 of my Competitive Landscape blog I discussed how horse racing is a great metaphor for the competitive business environment. Each horse (or business) has a different set of attributes and challenges, yet they are all trying to achieve a common goal. Throughout the race their position changes in relation to their competitors as they deploy various strategies and at any given point one horse may be leading the pack while shortly thereafter, they’re caught in the crowd or trailing due their limitations and /or the efforts of their competitors. The biggest challenge to this metaphor is that in horse racing, unlike business, all the horses have the same goal, or finish line.
For businesses to succeed in the face of their competitors, it’s necessary that they have a clear understanding of the competitive landscape. They need to understand who’s in the race and what their comparative strengths and weaknesses are. In Part 1 of this blog we looked at 4 steps to initiate a Competitive Landscape Assessment and the first 5 attributes for evaluation. In this blog (Part2) we’ll look at the remaining 5 attributes and provide suggested sources to obtain information.
Remember, it’s important that you gather both qualitative and quantitative data to effectively assess your competitive landscape and to do so with intention as opposed to casual observation. Completing a competitive landscape assessment will provide valuable insight into how your business is performing in relation to others in the market. Below are the remaining 5 attributes to consider in your Competitive Landscape Assessment.
5.) Pricing Strategies and Positioning
Typically, it’s not just the price that drives customers to purchase a product or service but the pricing strategy as it relates to their perception of value. Just capturing your competition’s price doesn’t give you much information to work with unless you understand their pricing strategy and value proposition. If you have the lowest price but still have a low market share, obviously something else is driving customer behavior.
Take a look at competitive pricing models such as pricing tiers, subscriptions, buy here pay here, etc. Also, identify strategies associated with discounts and promotions as they relate to frequency offered and size.
6.) Distribution and Sales Channels
Do your customers access your products and services in the same manner as your competitors? Compare how your competitors provide access their products and services versus their position in the market. This should give you a perspective of what’s working and what’s not. It may not be the causation of the customer purchase, but it is likely correlated with improved sales volume.
Monitor sales channels used by competitors and consider geographic areas where your competitors are expanding. Don’t forget about potential third party channel strategies such as Amazon, eBay, etc.
7.) Innovation and Technological Advancements
Oftentimes, competitive advantage comes from innovation. Identify the new and innovative changes made by your competitors. If they’re adapting a quicker and more substantial pace it’s likely providing a significant competitive advantage. Where is your company in comparison? Be sure to stay abreast of industry and market changes in technology, product design, and delivery systems.
Monitor patents or new products introduced into the market by competitors. If possible, try to gain an understanding of their research and development activities. This can provide a perspective on where they think the future changes reside. Identify who is using advanced technology such as AI, new software developments, or production equipment.
8.) Regulatory Landscape and Compliance
Regulations vary greatly between industries but compliance with them can be a clear indicator of competitive positioning . Presumably regulations within an industry would apply to all relevant competitors in the same manner. However, there may be instances where direct or indirect competitors are regulated differently. Understanding the regulatory environment associated with your competition is important because regulations can have a significant impact on business operations. Your ability, and that of your competitors, to comply with regulations can directly affect your competitiveness.
Understand and monitor how well your competition adheres to regulations such as environmental standards, data privacy, consumer protection, etc. It is also important to understand how industry regulations might affect the ability of new competitors to enter the market or existing competitors to expand.
9.) Strategic Partnerships and Alliances
Businesses that use strategic partnerships and alliances will significantly increase their competitive advantage. Knowing which of your competitors are using these and with whom provides you an opportunity to identify potential threats or opportunities, anticipate potential shifts in your market, and answer the question of where your company is positioned amongst your competitors.
Track any collaborations between your competitors and complimentary product and service suppliers and organizations that provide competitive advantage in product or service promotion or delivery. Additionally, monitor merger and acquisition activity within your industry. It specifically points to symbiotic relationships that provide competitive advantage.
10.) Financial Performance
The financial position and performance of any company will impact their ability to be competitive and grow or sustain operations. Understanding how you rank amongst your competitors gives you significant insight into your ability to invest, scale, and outperform your competition. The financial performance of your competitors can be one of the most difficult components to monitor in your competitive landscape.
If you, or your competitors, operate in a public company environment, access to this information is more readily available. At a minimum, you should track the financial health of your competitors through revenue and profit margins. Even if you can’t identify this for each specific competitor, there is information regarding industry performance that allows you to see where you rank in financial performance. If possible, try to identify your competitors’ funding and investment activity.
As promised below is your suggested resource guide to finding pertinent information on your competitors. These are just a few suggested areas. You may need to research others to find the best information available.
Connect with me, and follow Strategic Orientation, LLC on LinkedIn to ensure that you see future blogs on Business Performance Matters.
Have a great day!
Richard
SUGGESTED RESOURCE GUIDE
Market Share and Company Size
- Market Research Reports (e.g., IBISWorld, Statista, Nielsen, or specialized industry reports)
- Public Financial Disclosures (if applicable, for public companies)
- Industry Benchmarking Reports (from trade associations or market analysts)
- Company Websites/Investor Relations (for public data)
Competitive Product/Service Differentiation
- Competitor Websites and Product Listings
- Customer Reviews (e.g., TrustPilot, Yelp, or industry-specific review sites)
- Social Media and Forums (customer discussions, brand mentions)
- Third-Party Review Websites (e.g., G2, Capterra for SaaS products)
Customer Satisfaction and Brand Perception
- Review Aggregators (Google Reviews, TrustPilot, etc.)
- Social Media (customer comments on platforms like Twitter, Instagram, LinkedIn)
- Customer Surveys (via platforms like SurveyMonkey or Qualtrics)
- NPS Surveys (if available within your industry)
Marketing Channels and Strategies
- Competitor Website (look at blog posts, social media activity, advertising)
- Advertising Research Tools (e.g., SEMrush, SpyFu, Ahrefs for insights into competitors’ online ad spending)
- Social Media Platforms (to observe competitors’ engagement strategies)
- Email Marketing Tools (e.g., Mailchimp, SendGrid for email strategies)
Pricing Strategies and Positioning
- Competitor Websites (pricing pages)
- Price Comparison Websites
- Industry Reports
- Customer Feedback (on pricing)
Distribution and Sales Channels
- Competitor Websites (e-commerce vs. physical stores)
- Industry Reports
- Third-Party Marketplaces (look at competitor listings)
Innovation & Technological Advancements
- Patent Databases (e.g., USPTO, WIPO)
- Industry News (TechCrunch, Wired, or sector-specific publications)
- Product Announcements (company blogs, press releases)
- Job Postings (to track whether competitors are hiring for new technological capabilities)
Regulatory Landscape and Compliance
- Industry Associations (for regulations and compliance updates)
- Government Websites (e.g., FTC, FDA, SEC)
- Competitor Disclosures (legal filings, public records)
Strategic Partnerships and Alliances
- Press Releases
- News Websites
- Company Websites (Partnership Sections)
- Business Journals
Financial Performance
- Public Financial Statements
- Investor Reports
- News on Investment Rounds
- Financial Databases (e.g., Crunchbase, PitchBook)
