Competition and Competitor analysis
It is important to know against which providers you must compete. You should therefore identify your competitors and explore their particular strengths and weaknesses. Align your offer accordingly (product / service range, quality, customer service).
Ask yourself the following questions:
- Who are the competitors on my market? What do they offer and how good are they at it?
- What new developments can be expected from my competitors?
- Which competitor is cheaper than me, which is qualitatively better?
- How do I make sure that I am always aware of the actions of my competitors (e.g. dumping offers, sales promotions) and can react if necessary?
You will only be successful if you are familiar with your market and its conditions on the supplier side. Do you occupy a market niche? Or: Who is the market leader? Does the market leader pose a particular risk in terms of pricing policy, expansion, influence on suppliers?
If you are a start-up company with little or no industry knowledge, this type of information is not easy to obtain. Publications in the press (association news, business and trade journals), trade directories or meetings with suppliers, customers and test purchases or company visits can be helpful.
In order to assess your competitors and learn from their strengths, it is best to compile a competition table. Using certain criteria, compare the price, quality, comprehensibility, etc. of your product to those of your competitors and illustrate the advantages and disadvantages with plus and minus signs. In this table, you can collect and condense the information researched during the conception phase of your company. This way you gain extensive knowledge about your strengths and weaknesses in comparison to your competitors and you can act on the market with a precise focus.
At present there is a direct competitor (www.wettbewerber1.de) in Musterstadt, who offers approximately the same service and addresses the same target group. He also has his own homepage and works, as far as we know, as a sole trader. In addition, there is a service provider that provides a nationwide internet platform for those seeking help and helpers (services are therefore only brokered in this case). Furthermore, there are companies that offer individual services, such as laundry or cleaning services.