SEO Experts

Competitor Analysis, Dos and Don'ts

As explained previously, it is extremely important to stay aware of your external environment. Analysing your competitors could result in proactive and competitive solutions. With that said collecting information about your rivals is critical, and should be part of your marketing strategy. Gathered information could help anticipate market opportunities, trends, risks, possibility of new entrants, and the degree of rivalry. Yet, just like any business transaction, gathering data on your competitors must be ethical and within certain business guidelines. Most of the time, the reasonable way is the hard way, still for an effective long lasting competitive edge, one must do what is best for the long term. Remember that your competitive strength and weakness lies in the methods by which you conduct your research.

Acquire information, without crossing the line

Questions: There is nothing wrong with asking questions, in fact one will not be provided with answers without initiating them first. Questions are also very beneficial if you come upon information that you believe to be confidential. Always ask about the source of information that you receive, even If they came from a trusted employee. Moreover, always question wither it is ethical to use them or not. If you are not sure, and could not make the decision yourself, ask for your superior's opinion. It won't be a wrong idea to consult your lawyers too.
Most importantly, and for your own benefit, always question, why where these information made available. You never know, your competitors might leak out data, to deviate your strategy in a certain direction. Contaminated information could produce disastrous results.

Stay ethical: Your competitors today could be your partners tomorrow. Never risk relationships with anyone; you might become best friends one day. So, if you view something as unethical, then your competitors will most probably do too. Last but not least, ticking your competitors off might result in a more competitive rivalry.

Consequences: It is never fun to break the law. No matter how high your position is; the law is always there to discipline you. Also, since improper data compilation, gathering and storing are not highly tolerated in today's business world, you will be risking bad media. The last think you want is for a bad reputation to follow your organization. Especially that bad media could result in no customer trust, low customer loyalty, and low switching costs.

Gather your information the right way

1. Public resources:

You will be shocked by the amount of good information out there, available to everyone and anyone.

• Print Media: Newspapers, magazines, articles, and cases.
• TV: Documentaries, television programs, advertisement
• Out door media: PR, Brochures
• Websites: Their own websites, affiliates, online articles
• Secondary research: surveys conducted, reports, analysis
2. Customers

Your customers have a lot to offer in regards to your competitors, a simple survey could reveal to you, which competitor is currently sitting on top of your consumer focal list. Moreover, the more you talk to customers, the more you understand, and thus the more you can satisfy their needs. Remember, talking with customers is essential. Your competitor's customers: Focus groups, interviews, one to one sessions are all forms of primary data collection that could shed light on how general consumers think. Just make sure not to ask confidential information, it could be regarded as unethical.

3. Hiring professionals

You can hire a professional third party that specializes in secondary and primary data collection. Most of these professionals work, by focusing on certain markets and/or industries, which helps them provide competitive intelligence, as well as competitive information.

Here is some big Don'ts

1. Hiring your competitor's employees:

   Hiring individuals that had previously worked for your rivals, for the main purpose of gaining competitor information is a big NO . No mater how tempted you get, or how beneficial it would be for your organization to know of:

• your competitor's future plans
• Pricing strategies
• New marketing techniques
• New contracts
• New market expansion
Most newly hired employees will feel obliged to please their new boss, and will talk, even if they were not pressured. Therefore, not only should you not encourage them to do so, but you must also have a strict policy regarding this issue. Accepting confidential and private information is just as unethical as deliberately searching for them.
2. Spying:

   misrepresenting your identity or the identity of any of your employees for the sake of gaining information is also unethical. Not only is it unethical, but it is also considered as fraud. This includes posing as a partner, customer, supplier, or an information agency.

3. Bribing:

   We all know the implications and consequences of bribing. As well as being unethical, it is demeaning for your organization and the reputation by which it stands behind.

4. Monitoring your competitor:

   The guidelines of monitoring competitors are blurry, and therefore is abused by many organizations. Surveying your rivals outside public spaces or through private means is unethical. Such examples are setting cameras, eavesdropping, and taking private photographs. You must always respect your competitor's privacy.

5. Looking in your competitor's trash or dumpster:

   this is pretty self explanatory.