Analyzing a Competitor’s Strategy
Many business firms rely on competitors’ strategies to keep them from the dust. The majority of firms use competitive intelligence to analyze and define their competitors’ strategies so they can stay ahead of the game. Dr. Jordan Sudberg, a pain management specialist, has experienced a variety of competitive intelligence methods throughout his career and shares them in this article to provide an understanding of how businesses analyze their competitors’ strategies.
Here are the different ways a business can analyze a competitor’s strategy:
Stakeouts are an activity that business firms use to observe competitors and get a better understanding of how they operate. Jordan Sudberg says the stakeout method is used mainly when a firm believes that something the competition might be doing indicates a potential opportunity or threat. When the business uses this technique, it will involve half-day to weeklong stakeouts at their specific location or another location where their competition can be observed to see if any patterns or trends are emerging.
2) Use of Consultants and Other Third-Party Sources
Jordan Sudberg explains using consultants and other third-party sources as another way to obtain information about a competitor’s strategies. The most common use of consultants is to perform competitive analysis within their field or industry. Jordan says a firm can resort to hiring qualified consultants to analyze the strategies used by the competitors. Other businesses can accept consultants, but they will go there to explore their schemes.
3) Undercover Research
Undercover research is when the firm hires someone to infiltrate a competitor’s organization to understand the competition within their organization. Jordan Sudberg thinks this method can be helpful when limited resources are available, and the business already has a good idea of what it will uncover. Jordan also says this is a suitable method because it does not disturb or interfere with the normal operations of the company’s staff.
4) Extensive Analysis
Jordan Sudberg explains extensive analysis as how the firm uses spreadsheets, graphs, and other data to analyze the competition’s strategies and determine its strengths and weaknesses. Jordan says the firm can decide what methods they want to use to increase profitability and decrease costs.
Dr. Jordan Sudberg talks about interviews as another way a firm can analyze its competitors’ strategies. He says the firm will contact the competitor’s employees to understand how they operate and their available resources. This provides an accurate analysis because it considers employees’ perceptions and feelings toward their organization and their contribution level to the firm. The company will be able to evaluate issues that arise when a company undergoes internal changes. This method is done through face-to-face interviews or over the telephone.
Through several methods, firms can analyze their competitors’ strategies. The results should allow the business firm to determine whether they need to change their strategy to stay ahead of the competition. It would also be best if businesses applied their competition analysis strategies, which are their strengths, weaknesses, opportunities, and threats, to survive competition from other companies.