Competitive Intelligence: Outsmart the Competition

Paul Cashnelli is the assistant Director of the Bergen County, NJ Small Business Development Center. He is a part of the statewide New Jersey SBDC found in 1977 under an act of congress.

Today it is a dynamic organization offering a variety of educational and business resources are available to counsel and train small business owners to finance, market and manage their companies. Clients are assisted in exploring their business ideas, developing and assessing their business plans, making cash flow projections and accurate financial statements, and formulating marketing strategies. International trade, government procurement, technology commercialization, e-commerce, manufacturing Mentor/Protege and information services specialty programs are coordinated from NJSBDC headquarters.

This article was written by Paul and offers excellent tips on "Outsmarting" your competition.

 

Some entrepreneurs believe that only large corporations can afford to perform market research. The truth is small businesses cannot afford to not conduct market research!

Technology and the proliferation of information resources have made this task easier in recent years.

Market research includes understanding the competition and is an essential part of marketing. Your promotional strategies and sales success will be influenced by your ability to differentiate your business from your competition. If you know what your competitors are up to, you are well started on the path of differentiating your business from the competition

This knowledge, acquired through “competitive intelligence” can provide answers to the question that you should be asking yourself on a regular basis. How should I improve or change my company’s competitive edge, given what I know at the present time?

Competitive intelligence (a form of market research) is a process and a way of thinking about your business. It is a process in which you proceed systematically, answer a series of questions about your competition and base your answers on facts. It is a way of thinking in which you put yourself in the your competitors' shoes,

Here are additional key questions you should be asking in order to gather the intelligence information required to formulate business strategy decisions.

1. Who are my direct and indirect competitors? – Determine the number, their size and how long they have been in business.

2. What benefits do they offer the customer? - Research their pricing, product, service, convenience, location, advertising and promotion.

3. What new or unusual markets are they pursuing? – Determine if this is an opportunity for your business to also pursue or a threat to combat.

4. What are your competitors doing to attract customers? – If they are servicing new customers or worse yet, attracting your customers, then action is required to stem the tide.

5. How does you competitive edge hold up? – Rethink your competitive edge in light of your analysis of the competition.

6. How and what can I learn from the competition? - Determine if your findings present evidence, that you need to ignore, emulate, or improve upon the products or services the competition offer.

The process can be time-consuming but need not be expensive. Low cost, no-cost options are available. You must be creative, persistent and dig deep when doing your market research. Do not be afraid to ask for help! Resources of information include:

· Personal experience and insight

· Local telephone directories, newspapers and advertising

· Visits, telephone calls or requests for information via “mystery shoppers”

· Vendors, customers, business associates

· Libraries (business reference texts)

· Trade Associations (Encyclopedia of Associations)

· Trade data found in trade publications

· Private research firms

· On-line sources (the Internet, web pages, business chat groups)

· Local, state and federal economic development agencies

· Small Business Development Centers

Entrepreneurs looking for a comprehensive source for “intelligence gathering” information can look to the Small Business Development Center at Bergen Community College or any center in the NJSBDC network. This “total business resource” center offers information pertaining to local, county, state, federal and international resources essential to small business success. Assistance is provided via free, individualized counseling, seminars and workshops, computer databases, start-up business guides and video informational tapes. For more information call the Bergen SBDC at 201-447-7841 or NJSBDC Information Services at 800/432-1565.

Article written by Paul Cashnelli
Assistant Director
Bergen Small Business Development Center