Business Analysis Toolkit

With the rise of many manufacturers in several industries, such as clothing, computers, cars, etc., one needs to look at where he stands as far as competition is concerned. This gives rise, too, to the importance of a competitors analysis scorecard. What needs to be done here is to see the strengths and weaknesses of industry opponents and then make wise decisions from the results of this analysis. One will then be able to see if the current processes of his business are in line with the standards of the industry. This does not only include technological advances and applications, but also other business aspects, such as marketing, advertising, employee motivation, product quality, finance management, and many more.

In conducting this analysis, one does not have to measure everything. What is important is only to analyze key success indicators in the industry. Moreover, the goal here is to compare how the competitors stand against your business so you can get a clearer picture of what is going on and what actions to undertake. Remember that the action plans you will carry out should carry out the SMART objective. SMART is an acronym for specific, measurable, attainable, realistic, and time-bound. The action plans should have all these characteristics to rise above competition or otherwise, it is bound to fail.

First, there has to be a competitors array. This is a data table that compares your company to your competitors. As mentioned earlier, this should only contain key success indicators in your industry. For example, take a look at the quality of your product and the competitors’. Measure the quality of the competitors’ products and yours, too. Once the raw data is there, convert the score to a corresponding weight value depending on the metric’s impact on the business. Do this for the other metrics and then get the weighted average. You will then see the areas that your competitors are good at where you are not. Your goal is to improve these areas and maintain the others where you rise above them. Always remember that when you are measuring, always be objective. Keep the measurement based on facts, and not on assumptions and speculations.

Next, you have to conduct competitor profiling. This is where you gather as much information about your competitors and use these data to your advantage. You can formulate strategies to find out how you can advance on sales and other key success indicators. First, you can check on your competitors’ background. Check their location, marketing presence, online strategies, if any, and other activities that keep their business going. You may also want to check the top personalities in their firm and find out their financial stability. Check out the company’s history, important dates, and important activities. If you know that they will have a celebration, like an anniversary on this date, you may want to come up with your own special promotions on the same day, too.

These are the things that a competitors analysis scorecard should have. The information or data need not be too extensive. In fact, they should be precise, concise, and readily understood. Remember, you do not want to get stuck with analysis paralysis.
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