In the first part of this series on analyzing your competition Competitive Analysis For Artists and Creatives (Part I) – Your Competitor List you were given some ideas on developing a list of your competitors. You need to look at direct competitors for your products or services as well as identify competitors who are not so direct and compete for your customer’s dollars.
The next step in the competitive analysis process is to identify attributes or areas where each of your competitors has a competitive advantage, no advantage or disadvantage and competitive disadvantages. Having this information will help you to develop effective strategies for a successful creative business.
The idea behind analyzing your competition is to look for their areas of strength and weakness. If they have areas of weakness you may want to take advantage of these. If they have areas of strength you will need to watch out and possibly emulate these strengths.
Get a piece of paper, list each competitor from the first exercise and give yourself plenty of room to write. Now you are ready to analyze your competition. Rank each competitor on whether the attribute is their advantage, disadvantage or is neutral.
Here are some ideas on the attributes where you need to score each competitor:
- Management and Key Personnel
- Company Image and Brand
- Facilities, retail locations, studio or workshop.
- Geographic Coverage and Locations
- Distribution Channels where they sell their products (retail, wholesale, web, dealers, galleries…)
- Financial Condition
- Quality of Products and Services
- Products Features, Uniqueness, Style and Availability
- Product / Service Delivery, Pricing, and Terms
- Customer Service and Customer Focus
- Technologies Used and Manufacturing Ability
- Patents, Trademarks, or Copyrights.
- Marketing and Sales
- Buying Ability
- And any other factors you can think of that make up your competitor’s advantages or disadvantages.
Once you have completed this exercise you should have a good ideas of the competitive landscape you face. In the next article we will discuss how to develop a competitive profile for YOUR creative business.