Last Monday, Expansión’s SME special published ‘Formulas for being better than the competition’, an article written with the participation of the EAE Business School teacher Mónica Mendoza. Mónica gives classes on the Master of Marketing and Commercial Management and the Master in Commercial and Sales Management at the school.
In the article, certain strategies are put forward for beating our market competitors, such as innovating constantly and keeping one step ahead of their decisions, for instance.
“Knowing how to pre-empt our competitors can give us a clear advantage in the market. To beat our most direct rivals, the first step required is to analyse how they operate, identifying their strategies and the quality of their services”.
Distinctiveness is a highly valuable quality for setting ourselves apart from our competitors. However, this is one of the most complicated challenges we face because, as the article states, we have to know in detail what our rivals do and how they do it.
Another strategy recommended in the article in order to become the market leader is innovation, although this option is often difficult for companies that do not have the luxury of a large R&D budget, especially in the cases of small firms.
Meanwhile, the EAE teacher Mónica Mendoza recommends carrying out an analysis of our competitors’ weaknesses in order to be able to offer additional value. One good example of such a case is IKEA: “Furniture was really expensive before companies like this came on the scene. They identified this and saw an opportunity in the democratization of design for the middle layers of society,” says the teacher.
The Expansión article gives a special mention to the Internet as a particularly interesting opportunity to get a better understanding of our rivals’ tactics in real time. Through this broad online window, we can analyse their websites or their presence on social networks to discover more about their business strategy, as well as finding out what our competitors’ customers think and feel about them through blogs and forums, etc.
Last but not least, the article suggests other options for reaching our goal, such as specialization, diversification and expanding our range of products, or striving to create synergies with other companies.
In your opinion, what do you think is the best option for beating your market rivals?