Don't shy away from playing 'I spy'
Knowing your 'enemy' is a must in the cut-and-thrust world of business. But making it an obsession can drag you down
July 09, 2013 / 17:15 IST
Gargi Banerjee
In the cloak-and-dagger word of big business, it’s called ‘competitive intelligence’ or CI. But that’s just a pretty term suited executives love to toss around. Others simply call it ‘knowing your enemy’.
Worldwide, large corporations dedicate entire teams to uncover ‘intelligence’ about their competitors and incorporate the information into their strategies. As a new entrepreneur, though, it is impossible to do the same. But do not undermine the importance of gathering information about your rivals, no matter how big or small your venture is. In fact, CI is of utmost importance when laying the foundation of your company.Don’t Be Presumptuous
Bharati Jacob, founder and partner at Seedfund, a Bangalore-based early-stage investment firm, points out that most aspiring entrepreneurs assume that since their product or service is unique, worrying about competition is a waste of time. Well, that could be your Achille’s Heel.“Even if you think yours is an unbeatable offer, chances are, your potential customers are already making mental notes about how you fare against your competitors,” reveals Jacob. It is thus imperative to keep a close eye on what your competitors are up to.Identify Your Competitors
Even if your offering is unique, someone is probably doing something close enough to be called your competition. The next step is to seek them out. “Potential clients are likely to ask you what you can offer them vis-a-vis your competitors. So it is wise to have your research in place and concentrate on your unique selling proposition without bad-mouthing or demeaning your competitors to your clients,” advises Jacob.Narrow It Down To Five
If you are in a domain where there are many players, do not waste your time trying to follow all of them. Sahil Parikh, Founder and CEO of Synage Software, which is credited with bringing out the first Cloud-based collaboration platform of India christened Deskaway, says an entrepreneur should be prudent while deciding on who his closest rivals are before tracking them. It is best to narrow them down to five. “Tracking too many rival companies is not only time-consuming; you may end up losing focus on growing’s your own business,” says Parikh.Use Social Media
These days, it is fairly easy to track your rivals’ progress by making the best use of social media platforms. Follow them on Facebook, Twitter, Pinterst and the like. Parikh of Synage also suggests signing up for google alerts with the names of your competitors. “This way, you get to know when and where your competitors are being featured. It is a good tool to help you stay on top of things without too much effort.”Attend Events
For more reasons than one, it is good strategy for any entrepreneur to attend conferences and trade shows. Not only do you get to network and keep abreast of trends in your domain, you also get first-hand experience of your competitors’ progress. And it’s not always about customer acquisition that you have to worry about when tracking the competition. It is about knowing the long-term goals of your rivals and their potential to achieve these goals. This makes it easier for you to position yourself at a vantage point.Confer In Confidence
Another source of valuable information about your competition is your suppliers (assuming that you and your competitors use the same suppliers). Now, we are not suggesting any back-handed bribes here! All you need to do is ask them some intelligent questions without
asking about your competitors directly. For instance, you may casually ask them how many pieces of a certain product have been pre-ordered the following month. Another great source of information is your customers themselves. You can be assured of authentic information as they will be speaking from experience. Once again, guard against indulging in mud-slinging your rivals. All you need to do is ask some simple yet lucid questions.Don’t Get Obsessed
Lastly, Parikh points out, “The primary objective is to be aware of your rivals and not snatch customers away from them or run them down to drum up your own products or services.” He suggests that one merely spend a little time every day checking out your competitors’ progress. Remember, it is just an attempt to be aware of your peers and to stay competitive yourself. If this becomes an obsession, it could well lead you down a path of self-destruction.
Bharati Jacob says competition is healthy for any venture and should be accepted with grace and a competitive spirit. “By all means, track your competition but let it not take your focus away from your dream venture.”You can send your feedback on smementor@moneycontrol.com or simply post comments below Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
