You’re probably always looking for ways to gain market share. Or if your business dominates the market share, you want to keep it. These situations demand for offensive or defensive market strategies.
These strategies include using innovation, understanding your competition and knowing what’s going on in your market. This is the part that competitive intelligence comes into play.
Before we take a look at how to use competitive analysis to gain market share, let’s see what really market share is.
What is Market Share?
Market share is the percentage of a market dominated by a certain business or company over a particular period of time. It is calculated by measuring the company’s sales within a time and dividing it by the total sales of the industry over the same period of time. It is one of the main measures businesses use to know how well they are doing versus competitors.
Why is market share important to a business? Having a larger market share gives your business a competitive advantage. You may get discounted prices from suppliers due to larger orders thus, reducing your cost of production.
How can you Increase Market Share with Competitive Intelligence?
1. Know your Competition
Find out who your competitions really are by conducting a proper competitive analysis.
After knowing your competition and finding their market share, the next thing to do is to compare your business to theirs. What are they doing right that you are doing wrong? What are t
hey doing wrong that you can improve and leverage on? What are they doing wrong that you need to avoid? Why do their customers choose them over you? Why are your customers leaving you? How are their products or services any better than yours? What marketing and advertising schemes do they have that you don’t? How are they reaching out to customers and how do they treat them?
When you have answers those questions, it’ll be easier to move to the next step.
2. Understand your market
The next step is to scale up. After you have discovered the aforementioned, take time to add more value to your product through innovation, strengthen the relationships between you and your customers and treat your potential customers in the best of ways. Recruit skilled and committed people that will be the best employees and you can even acquire competitors’ employees by offering better salaries and career benefits.
3. Stay ahead of disruption
Innovation has never been so rapid, while the cost of falling behind has never been so high. One way to counter this is by growing and developing strategic agility. Here’s a reminder how you can do this. When you understand how you competition and market is moving, you can use this to stay ahead of market disruptions. Use the technologies that will disrupt your sector before your competition.
Competitive analysis should be part of your strategy to gain more market share. But how can you start? And what are other benefits you can gain from competitive intelligence? You can find the answer in are other blogposts!