I read the material in the text book about the Competition, and it is very clear that understanding the competition is a crucial business activity for any company. Therefore, for any business it is essential to understand two basic questions in order to formulate an effective strategy, and those questions are:
1. What is your company doing?
2. What are your competitors doing?
The goal is to gather enough data in order to make meaningful comparisons between your company and competitors. This analysis can help a business to learn the best practices from competitors and also learn to avoid the mistakes they make. Furthermore, attention is given to how firms analyze the competitive positions of rivals and how define their marketing strategies. Successful companies try to satisfy customers needs and wants better than competitors are able to do it. This differential advantage is achieved through the elements of marketing mix.
Michele Levy, an independent brand strategy consultant says: “Keeping track of who your competitors are, what people are saying about them, and what they are saying themselves can help you differentiate your business and stay ahead of trends that could impact your business,” “Staying smart on the competitive landscape helps you make very practical decisions around product development, pricing, promotions, messaging, as well as where you fit in the brand landscape.”
Very important are the ways and methods of obtaining information about competitor’s activities. Also how firms might assess competitors strengths and weaknesses.