No matter how good a business plan is, or how many things the company is talking about, without competitor research in the mix, it’s like a bee without honey. A successful business plan relies on competitor research to generate ideas, predict trends, and implement strategies that will make a company competitive.
Competition research often can be a time-consuming endeavor. For example, an airline might analyze other airlines, freight services, or even fuel prices to determine which airline will provide the best deal for passengers, which freight companies will handle the most efficiently, and that fuel prices are consistent and reliable. The results of competitor research can be useful to a company because they allow companies to meet the needs of customers while having a good idea of what their competitors are doing.
With competition so critical, a company should pay attention to trends in how consumers are spending their money, how employees are being treated, and any major customer service issues, like complaints. If you have the right information, you’ll be well on your way to providing high quality service at the best possible price.
Even if you already have a complete product or service, it’s important to use competitor research. While you can’t expect to roll out a new product or service immediately, you can gain valuable insight into what competitors are doing and what makes them successful. The research will also let you see what you might need to be successful with certain customers, which can help you better understand your customer base.
More than likely, you already know a lot about your competitors. They probably have a website, maybe even an email address. Sometimes this is enough to know how to approach them. However, some companies need more information than others do.
When a company needs specific information from its competitors, they’ll likely have to approach a third party to obtain the data. To help the company, the third party must be aware of the client’s goals and needs and will need access to data such as market share, online reputation, and what the company plans to do with it.
The third party will look to complement the company’s needs with some additional facts that they can provide. They will look at competitor websites, research the way competitors use the internet, and even look at where competitors spend money. These additional facts will let the company see what changes may be needed to get ahead of the competition.
No matter who does the competitor research, there are a few tools that both parties will want to use. First, the data will need to be compiled into a system, which the company must share with the third party. Second, both parties will need to evaluate the data and come up with some recommendations.
The third tool that both companies will use is a vendor. Once the data has been compiled and evaluated, the vendor will take the necessary steps to ensure that the data is put into a system and analyzed properly. This third tool will help both companies to get a quick response so that they can implement their ideas into the company.
The company will generally pay for the services of a third party, but sometimes the third party will pay for the research and then share the results with the company, which will make it seem as though the research was done completely by the company. Either way, it is important that the third party know the difference between the two companies’ needs. It’s impossible to do everything, and therefore, the company must have enough information so that they can determine which tools are going to be the most effective for them.
Whether the company has the funds to pay for the services of a third party or not, it is important that the third party work hard to find useful information for the company. Remember, a good third party will also help the company to determine their own needs, while helping the company determine theirs. It can be difficult for a company to go it alone when doing competitor research. However, if the company spends some time getting out there and finding out what others are doing, they can have a more successful business.