Weighing the Competitors

Effective Marketing Strategy - Strategic Planning          

In business, identifying the competitors is important before a business owner finalizes his decision about which business category and market segment to compete in. It is vital to the success of a new or existing business because it reduces risk, time, resources and expense.

The company must narrow the choices and decide which industry, product or service categories, brands, geographic areas, channels of distribution, etc., to compete in. Every company should know about their competitor's market share, buyers perceive about competitors' products, competitors' financial strength, their ability to spend money on advertising and promotions.

Every competitor has definitive weaknesses that may be points of potential advantage for other company and products. Finding the competitor’s strong side will help the business owner to understand what it takes to be successful in the market.

Dividing competitive forces among different markets, flanking attacks in weaker markets, direct frontal assaults with spending, new products and pricing across all market segments and product lines are examples of tactics.

Understanding each competitor's behavior in terms of short- and long-term objectives, strategies, and tactics will be extremely important to survival and success, in business as on the battlefield. Many of the marketing programs mimic battlefield moves.

Aiyan Thiruvalluvar says

வகையறச் சூழா தெழுதல்   பகைவரைப்

பாத்திப் படுப்பதோ ராறு. (465)

टूट पडे जो शत्रु पर, बिन सोचे सब मर्म ।
शत्रु-गुल्म हित तो बने, क्यारी ज्यों वह कर्म ॥ (४६५)

Explanation by Scholars

One way to promote the prosperity of an enemy (the competitor), is (for a person/business owner) to set out (to action) without having thoroughly weighed his ability (to cope with its chances).

வினைமேல் சென்றால் நிகழும் திறங்களையெல்லாம் முழுவதும் எண்ணாமல் சிலவற்றை எண்ணியவுடனே தொழில்மேல் செல்லுதல், பகைவரை வளரும் நிலத்திலே நிலைபெறச் செய்யுமொரு வழி.