At an early stage, a snapshot of the marketplace should provide sufficient information to determine whether your future competence has the potential to be unique or not. In addition to first-hand knowledge, you can gain some insight into how competitors are differentiating themselves by looking at their websites and sales collateral.
You should be able to answer several questions while completing a competitive competence analysis:
- Who are your primary competitors in the markets where you compete?
- What is the perceived competence of each competitor? How are they trying to differentiate from you and others?
- Based on their competence, to what level does each company differentiate itself on a scale of 1 to 10> (A rating of 1 means they are selling vanilla ice cream, while 10 means they have a clear differentiation. They’re selling their form of mint chocolate chip ice cream.)
- Are any of these competitors delivering or trying to deliver a competence similar to that of your company?
If yes, can you tangibly prove that you will deliver it better?
If you find out that competence is similar to that of the competition, then you need to go back to the drawing board until you define a competence that you can deliver better than anyone else in the markets where you compete. Gain team consensus about whether you can create a real differentiation for your company after you implement your competence and execute your plan.
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