Things You'll Need:
- Computer with internet connection
- Pen or pencil and paper
- Time - give yourself a week or month (assuming of course you're doing other things in between this project)
- Online library access is very useful.
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Step 1
Immediately list major factors about YOUR business. What industry are you in - retail clothing, hair salon, doctor's office, shoe store, etc? Where are you located? If your customers mention shopping elsewhere, what companies or professionals do they mention?
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Step 2
If you compete locally, such as a retail clothing store or hair salon, look in the telephone book and local newspapers and circle any companies in your industry. These are your competitors.
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Step 3
To search nationally, use a computer with internet access. Certain web sites will help you focus on specific companies. Hoovers is an online site that provides some information free, and other information for a subscription fee. Hoovers enables you to look up businesses by industry, click through to their web sites, and read capsule information on the scope and size of their business.
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Step 4
Many online sources are available in addition to commercial sites like Hoovers. The New York City Branch Library of Science and Industry provides numerous resources online. If you attended college, many college and university libraries grant alumni online access. Contact your institution to find out specifics. University libraries in particular subscribe to many article and information directories such as JSTOR, Ebsco, and others.
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Step 5
Searching for competitive intelligence online often feels like looking for a lost dime from outer space. One trick that has helped me find obscure industry information is to find the names of key employees of my competitor companies, particular sales and marketing professionals. Next, I key their names into search engines and see what turns up. One competitor to my retail company employs a marketing manager with a very unusual Slavic last name; her name easily turned up in the search engines, and bingo, I found an interview with her where she not only discussed the company's plans for the next five years, but the industry size and revenues, not something easily obtained through public sources. Try this in different search engines to find not only competitor information but industry information too.
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Step 6
Visit competitor web sites and analyze product and price points against your offerings. Are you priced too high for the market, or too low? Often companies provide opportunities to join mailing lists or receive newsletters. To keep abreast of developments among your competitors, make it a habit to sign up for any free mailings and pencil in an hour weekly or monthly on your calendar to review information.
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Step 7
Next, develop a competitor comparison grid. You may wish to list on a piece of paper a column with the competitors names. Across the top of the paper create new column headings for location, price, product, packaging, promotion, and anything relevant to your industry. Some business people assign a scale of points or stars to the grid, comparing their services to the competitors, while others use the grid to include detailed information.
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Step 8
Once you've completed these steps, you must review and analyze your information. Information does no good to your business if you don't take this last and final step - action. Whatever you learned from this exercise, take action on it. It may mean rethinking your prices or hiring a professional to improve your marketing. Whatever it means to you, you're armed to move your business forward for increased revenues.
Comments
dsarokin said
on 8/6/2008 I do a lot of competitive market intelligence research myself, but I've learned a few new tricks from reading this. Nicely done.
Feather said
on 8/1/2008 Great advice here!