If you just started your business, you might not see the benefits of competitive analysis for startups. It might just look like a of work that doesn’t pay off. It’s quite the opposite in fact. In order to be a winner in the market, every organization (either small or large) can benefit from thorough & systematical competitive analysis.
Regardless of the size of your business or how young you are, competitive intelligence has enormous benefits. And it is going to give you an edge over others in the fierce market.
Having said that, let’s dive more into why competitive analysis for startups is important.
What is the importance of competitive analysis for startups?
Valuable competitive analysis can form the strong foundation of your startup, giving you important data before you start dedicating your all into your business idea.
Basically, it will help you recognize whether your services or products is something the market demands.
Competitors are often viewed as a big barrier, standing in the way between you and potential customers. Competitive analysis is a superb way of learning about this barrier and how you can overcome it to reach the market.
Create a lasting competitive advantage
By utilizing competitive intelligence, your business will be able to create a sound marketing strategy that will produce a skill or valuable asset that your counterparts do not possess. This will give you an exclusive and lasting competitive advantage. Competitive edge are created from essential assets and skills therefore, you should plan out and organize a competitive strength system.
Knowing your competitors’ strengths and weaknesses will enable you challenge their strengths with a better service or product to customers and avoid their business operation weaknesses. The more data you have about them, the better it’d be for you.
Know your market to disrupt it.
If you are looking to disrupt the market through innovation, you need to add competitive intelligence into your business plan.
Gaining competitive intelligence seems easier than ever. More data is easier available, which opens a lot of perspectives for startups. Use your competitor’s website, public sources like Crunchbase and SEO & marketing tools like Ahrefs to create a full picture of your competitors.
Creating such a competitive landscape will allow you to see which technologies and innovations will be disruptive and how you can use them in your advantage.
Avoid to be lured into corporate espionage or using shady sources. These will most likely be either wrong or outdated anyway.
On a Final Note
Your business strategy needs to be concrete enough to withstand available information.
There are information overload out there about every industry, across several platforms. Careful researches before totally going into the wrestling ring will enable you emerge as the winner.
Although a competitive analysis program within your new startup can be disheartening, beginning small can bring your business great value and the ability to scale up fast.
Remember, know your competition.