It’s not easy to succeed in a foreign market without first thoroughly researching and understanding your likely competition.
Competitor analysis is a critical part of your export strategy because you need to know exactly who you’re up against. In turn, this will help you determine if you can realistically compete in a new market. Take the time to find out as much as you can about your future competition.
Remember that your competitors could include businesses that offer products or services that may be purchased as an alternative to yours, not just those that are essentially the same product or service type.
It’s vital you examine your competitors to find out where their strengths and weaknesses lie – and hence, where you might have some opportunities to advance your business in your target export market.
Provide an analysis of your competition by:
One of the best ways to identify your competitors’ strengths and weaknesses is to approach them from a customer’s perspective. Try finding out as much as you can about each of your competitors’ businesses:
You’ll want to know what they offer and for how much. If you’re concerned about your competitors seeing you in their stores, ask an unbiased friend to do this research for you. Also, pay attention to advertisements, which contain lots of information about how your competitors perceive their own strengths and weaknesses.
Use your research to build a profile of your key competitors in your prospective export market. Try to find out:
If you’re targeting large businesses in foreign countries, they often have ‘preferred suppliers’ that may be difficult to dislodge, even if you have something better to offer.
Develop your networks by starting with contacts you already have, such as business associates or professional advisers on banking, accountancy or legal matters. Ask them for recommendations of people to talk to on the topic of interest.
Some of your suppliers may have other clients already exporting that you could approach for information about markets and competitors.
Actively seek out opportunities to talk to other exporters because they can offer valuable insights into the level of competition in your target markets. You’re likely to find that other exporters are members of industry associations and Chambers of Commerce.
Many associations can also supply valuable research specific to your industry, much of which is based on ‘hands-on’ information collected from their members over the years.
Attending conferences, exhibitions and trade shows can also help with competitor research, especially if any overseas competitors will be there too. Aim to:
This is a great way to investigate and benchmark your competitors.
If you have the budget and lack the time to complete the research yourself, consider contracting an export business consultant to help you research your competitors.
You may also find specialist export branding companies or global media and communications experts who have existing information on your competitors. Make sure you check their credentials and talk to some of their existing customers before you commit to spending money with them.
An exploratory trip also gives you the opportunity to examine your prospective competitors first-hand to find out exactly who you’re up against.
Excellent planning is essential to getting the maximum benefit for the amount of time, energy and money invested in your visit. Find out exactly where your competitors are located. It’s important to plan as much as you can before you leave.