In business – and in electoral politics – knowing what the competitor is up to is critical. Whether it’s called competitive intelligence or opposition research, understanding your competition is part of the foundation of a solid strategy for success.
The first requirement is identifying who your competitor really is: The company who sells a product that looks just like yours? The entrepreneur who’s busy inventing your replacement? Or all the other ways that your customers can spend their money that may have nothing to do with you?
Most people assume it’s the first definition – insurance guys immediately think of the agent down the street, plastics companies think of the other guy’s polyethylene – but …
The most common competition is all those other things you customers can choose to spend their money on. Individual or corporation, they all have attractive alternatives to what you want to sell – a weekend at the beach, for example, instead of the premium on a long term care insurance policy, or a fatter dividend to the shareholders instead of a new computer system for the accounting department.
The most dangerous competition is often the competition you don’t even know you have – the inventor who’s looking to make you obsolete. The very best buggy whip guy was headed for disaster in 1903, unless he foresaw and quickly adapted to the dramatically changing personal transportation market.
Researching and understanding the competitive landscape you face – in an ethical and honest way – is a key element in the foundation of your success.
