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Gathering competitive intelligence is essential By Steve Burns, Capital News contributor I had an idea that I thought I would test out recently. I wanted to know how many businesses in the Okanagan really “know” their competition. Here is a summary of the survey results: 1. Ninety-two per cent had not analyzed their competition in the last 18 months. What I wanted to know was whether or not Okanagan entrepreneurs had taken the time to seriously look at their competitors recently. Seventy-two per cent felt that they were on top of their competition but more than 92 per cent admitted that they had really not looked seriously at their competitors in the last eighteen months. 2. Seventy-six per cent could not name the top 10 competitors in their business. Okanagan entrepreneurs had difficulty knowing who their competitors really were. If answers were provided, they were generally not well thought out. While general competitors may be known, often new competitive threats, such as a young, upstart company opening up in the marketplace, were completely missed. 3. Seventy-two per cent planned to analyze their competitors within six months. This was a positive note, however, when asked how this would happen, owners were vague on their approach. The remaining 28 per cent thought that it might be a good idea someday but commented that they were really too busy working in their businesses to worry about it. The real revelation for me was how few entrepreneurs understood the value associated with gathering competitive intelligence. Gathering competitive intelligence and analyzing your direct and indirect competitors can be critical to the long-term survival of your business. It could involve: identifying your current, emerging and potential competitors' strengths and weaknesses versus yours; determining what really makes your business unique; comparing product and promotional materials; identifying potential marketing strategies to be used against you; contrasting alternate distribution channels; analyzing critical pricing information, etc. Competitive intelligence often results in new information that creates adjustments to your business strategy. So when is the last time that you identified your current, emerging and potential competitors and devised a plan to gather competitive intelligence on them? You might be surprised with what you learn and the impact that this could have on your business. As Phil Andarr, a well -known entrepreneur has so aptly said: “Most of us never recognize opportunity until it goes to work in our competitor' business.” Analyze your competition and ensure that you don't miss out on the market opportunities that your competitors are exploiting! Steve Burns, CA, CMC, CFP, is the president and CEO of Burns Innovation Group Inc. (www.burnsinnovation.com) and Steve Burns Inc. Chartered Accountant (www.steveburns.ca), which provide consulting and accounting services to entrepreneurs. You can reach Steve at 763-4716 or via e-mail at: |
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