The criteria for evaluating competitors
Regardless of the type, it is necessary to identify criteria on which to base the evaluation of your competitors.
Whether direct or indirect competitors, you will need to consider:
- The business model.
- The channels of customer acquisition.
- Pricing policies.
- The financial performance.
- The customer care and retention strategies adopted.
- The communication and advertising strategy, online and offline, both brand and product.
- The online positioning on search engines.
These are some examples of elements to study carefully when conducting a competitive analysis in B2B.
Of course, before comparing a company’s business model, pricing policies or financial status with our own, there is another question to answer.
Who are my direct and indirect competitors?
It might seem obvious, but without first mapping the market, it is very difficult, if not impossible, to really understand how your competitors are doing, what their characteristics are, how they communicate and what results they are achieving.
Easy said, but not done.
Globalization, the multiplication of sales channels (online and offline) and the advancement of the digital technologies used also put B2B companies in front of a scenario in which understanding who yours competitors are can be extremely complicated, if not impossible, especially when it comes to indirect competitors.
Therefore, a specific one should be added to the question we have formulated:
Who are my competitors, direct and indirect, capable of posing a real threat?
Again, an answer to this question is not immediate, but certainly the mapping of the market is less complex.
In fact, it is a matter of identifying only those companies that can actually undermine our results with their strategies.
Going back to the construction equipment manufacturer, a competitor to watch out for is definitely a company of the same size-in terms of employees and turnover-located in one of the countries where the company is also present, with a similar production capacity.
If, for example, the company were to have a turnover of more than 200 million euros and four production sites, hardly another company with only one location and a turnover of 50 could pose a real risk.
Now we come to the most important question:
How do I find my competitors?
There are several solutions to this, each with advantages and disadvantages. Let’s see which ones.