For your business to grow, constant learning and adjustments are necessary. What are among the most important things you should be learning for your business to remain competitive?
It will be none other than your competitors. Knowing who they are will help you distinguish your business from theirs and to communicate with your target market.
What should you know about your competitors and why is it important?
Here are 5 reasons why you need to know about your competitors:
1. Helps You Identify the Type of Competitors You Have
Your competitor will be any business that deters a potential customer from choosing you. They often take two primary forms, they could either be your direct competitor or indirect competitor.
Direct competitors refer to businesses that have similar products and services as yours. For instance, if you’re a beauty spa business owner, your direct competitor will be other beauty spa business owners.
Having information about your direct competitors facilitates your ability to remain ahead of them.
Your indirect competitors, on the other hand, refers to businesses that do not provide the same type of service but fulfill the same need alternatively.
For instance, from the spa example, your indirect competitors will be businesses offering facial treatments in their threading centers, nail salons, or hair salons offering hair treatment, etc.
Obtaining information about your indirect competitors helps you draw out more effective ways to be at the forefront of your target market.
All in all, knowing the type of competitors you are having and why are they your competitors is crucial for understanding which marketing strategies and messaging are the most effective for your business.
2. Reveals The Positioning of Their Business
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