How do you align competitive analysis with your vision?

I use 3 words strategy to guide leaders to crystalize their vision. Asking them to describe what three words they use to describe their company. Going through that process helps them to pause, reflect and re-evaluate their vision.

One thing I have found helpful the most is identifying main and sub KPI’s, all departments follow them and contribute them. All those KPI’s need to be relevant to your vision and whole company needs to understand everyone is working for it. Finally, departments would never blame each other after any failure and try to recover from it together.

In My experience I use SWOT analysis which helps to really look at your organization vs Competitor from inside out by looking at Strength,Opportunities,Weakness and Threats.

The step by step would be: 1. Define a clear business vision. 2. Analyze competitors relevant to your vision. 3. Use KPIs to benchmark against competitors. 4. Adjust your strategy based on insights. 5. Monitor progress and communicate the alignment with your team. But the secret to aligning competitive analysis with your vision is a combination of knowledgeable managers, data-driven insights, adaptability, effective communication, and a committed team.

When doing strategic alignment assessments for my clients I begin by helping them clarify their story. How do you describe your business? How do your clients see your business? How do you know? What are the feedback mechanisms you have to validate that's how your clients see you? Your vision is only part of the story, it has to be aligned with the vision your clients and market have of you as well.

In this age of AI it can be hard to see who your competitors really are. One company I've been helping recently provides high quality face to face interpreting services. They really own the local market in that space. However as AI starts to push into interpreting at the lower levels of translation this will put pressure on their competitors to up their game and enter this space. It's not just about identifying your competitors its about seeing the trend patterns, what market pressures may move companies not currently competing to suddenly eat your lunch.

We are in business to serve customers. If keep our single point focus on customer needs, demands, desires, aspirations we do not need to look at competition. If we ask ourselves how can serve our customer better everyday the need for competitive study may not be that relevant. The only need is to study what options customer has to serve his need, desire, aspirations. We need give enough reason to customer to choose us irrespective of what options are there in market. So the focus should be on customer study. Competition will be left irrelevant.

Competitive analysis is a vital tool for any business that wants to succeed in a crowded and dynamic market. I use Gartner and G2 to do my research. It is key to define your Ideal Customer Profile, industry, customer segmentation. For example, Enterprise segment is quite different than SMB and Mid-Market segment. Make sure you incorporate that into your analysis.

In the old days, the 5 Forces model served us well—it was simple and effective. But today, with AI-driven advancements, the game has evolved, becoming more intricate than ever before. Identifying competitors now requires a multi-dimensional approach. It's about dissecting the market into segments and understanding that competitors come in both tangible and virtual forms. It's also about recognizing the digital players, the disruptors lurking in the virtual realm. By diving deep into market segments, analyzing real and digital competitors, and harnessing tools like AI-driven data analytics, we can uncover insights that were once hidden. The game has changed, but with the right mindset and tools, you can thrive amidst complexity.

To identify business competitors effectively, consider some methods and tools I have utilized to my advantage: 1. Online Searches: Begin with Google searches using industry keywords. 2. Google Alerts: Set up alerts for relevant keywords to track online mentions. 3. Competitor Analysis Tools: SEMrush, Ahrefs, SimilarWeb, BuzzSumo. 4. Social Media Monitoring: competitors' social media activities. 5. Industry Directories: Explore directories and market reports. 6. Customer Feedback: Review customer reviews and feedback. 7. Competitor Websites: Study for offerings, pricing, and customer reviews. 8. Market Research: Conduct surveys and interviews with customers and experts. 9. Trade Shows: Attend industry events to identify competitors.

SWOT is likely the single worst tool ever invented for business analysis. It lacks any underlying theory or structure. Importantly, it doesn't allow for context which means the attribution of a strength could also be argued as a weakness, opportunity or threat. It's completely subjective. For example, 'our high prices are a weakness'. Really? Perhaps that's the opportunity... carve out more of a distinctive, luxury-orientated product in the market? Worry less about your competitors... worry more about your customers. It's what most market leaders do.

I like to ask my customers, and centres of influence how they perceive my business, and my competitors in the market. Sometimes perception is reality (and more useful than another MBA strategic acronym). I have been surprised that the answers are sometimes quite different geographically which has allowed us to debate why this is - and more importantly - what we want them to be saying about us.

SWOT analysis is one of the frameworks you can use to analyze your competitors. Make sure you clearly define your goal with a focus area, make it measurable, achievable and time bound. Your competitors evolve, so does the market and your business. Other factors you should take into consideration include your competitor's geographic locations, regulations and associated risks.

Please, don't get stuck overanalyzing. Act swiftly in growing markets, adapt beats exhaustive research. And stand out with a superior solution. Unique features, quality, or service are the key. Very Important: Avoid a price-only race, and prioritize high-value solutions. Customers seek comprehensive, efficient answers. Focus on satisfaction and long-term success.

SWOT analysis can aid in competitor analysis by identifying their strengths and weaknesses (internal factors) and opportunities and threats (external factors). I use this framework which provides insights into how competitors operate, what strategies they employ, and where vulnerabilities exist, allowing you to formulate a more effective competitive strategy.

Competitive analysis can be used as a guideline for you to determine where to invest, when to invest and "build vs buy" strategy. It is wise to re-evaluate your analysis as market condition shifts.

To align your business competitive analysis with your vision, start by: 1. Define Vision Clearly: Ensure your business vision is well-defined, outlining your long-term goals and values. 2. Identify Key Competitors: Conduct thorough competitor analysis to understand the competitive landscape. 3. Evaluate Alignment: Assess whether competitors' strategies align with or deviate from your vision. 4. Identify Competitive Advantages: Determine how your vision can be a source of competitive advantage. 5. Adapt and Refine: Adjust your vision or strategies as needed to stay competitive while staying true to your core values.

Pick your battles and focus your positioning on the strengths and uniqueness of your offering (be that product, distribution, enablement or other). What is hard to copy about your approach? What is unique about your approach? Frame your positioning around these aspects in a way that resonates with your customers.

In this dynamic landscape, my approach is all about adaptation and innovation. Once the competitive analysis unveils the gaps and opportunities, I seize them with agility. It's about not just fitting in but standing out, creating value that resonates with customers. It's not just about what we offer; it's about how we communicate our uniqueness. Every facet of the business, from product development to customer service, is fine-tuned for excellence. Regular monitoring ensures we stay on course, adjusting sails as market winds shift. The key is perpetual evolution—a commitment to staying ahead and delivering value that consistently delights our customers.

Concentrate on your distinctive strategy and addressing customer needs rather than competing with others. You started your business to add value and create win-win situations for both you and your customers. This should be your primary focus and driving force.

Competitive analysis is not just a white board exercise. You could leverage third party to collect data from your customers and competitors' customers for a more holistic view. Gartner, G2 and many other social media channels are good resources. Don't forget to check your competitor's culture reputation through Glassdoor.

In the realm of decision-making, I swear by data-driven approaches. AI, a powerful ally, isn't the ultimate answer but a tool to amplify our efforts. It accelerates our journey, making it more efficient and impactful. The secret lies in harnessing AI's capabilities while retaining the human touch—where intuition and expertise converge with data-driven insights. It's the art and science of tomorrow's decisions.

Continually ask if you'd use your own solutions and if they genuinely help. A- If not, find ways to make them more valuable. B- If yes, then make them even better. Your commitment to quality will resonate with your customers.

Aligning competitive analysis with vision is important for making - 1) Strategic decision-making: Competitive analysis helps you understand your competitors and make better strategic decisions. 2) Market opportunities: Competitive analysis helps you find new opportunities and focus on your strengths. 3) Unique value proposition: Competitive analysis helps you understand your competitors and create a unique value proposition. 4) Mitigation of threats and challenges: Competitive analysis helps you prepare for challenges and develop strategies. 5) Effective resource allocation: Competitive analysis helps you allocate resources by prioritizing goals.

Keep an eye on value chain or customer journey segments where you don't see a lot of competition and question why and can you add value to your customers there as this is potentially your next niche or 'white space.