Undoubtedly, the impact of the pandemic has been disastrous on small business. For the Entrepreneurs, to have a successful run in the market must be informed with the respective competitors’ strategies, ideas, growth pattern, marketing objectives, product lists, its profitability, current and past methods, strengths and weaknesses and size(in sales).
A Competitive Analysis is a crucial part of the company marketing plan. With the help of this, one can build what makes his or her products or services different from others. This analysis provides with all the information of how competitors market their business and ways to penetrate the market by entry through product or service gaps in the areas where the competitors do not serve well. It helps the entrepreneurs to develop a sustainable revenue system. There are different variables on which small and big companies compete with their each other. Small businesses cannot compete with large businesses on the variable of ‘price.’ As the internal efficiencies and volume sales available to large corporations are not available to small companies. Large business can be defeated on other variables like better service, better quality products, or unique buying experiences.
Tools used in the analysis of competitors.
- Competitive Analysis Grid
This tool takes into consideration variables like strengths, weaknesses, product quality level, price point, location of the business and promotional strategies of two and more companies. This data helps one to understand as to why the competitors are so successful and in what areas, one needs to work at.
- Three circle tools
The main goal of this tool is to identify competitors’ strengths and advantages. This would help one to identify values or features not offered by competitors.
Changes in the market due to Pandemic can be a permanent trait for the better
“Necessity is the mother of invention.” This phrase goes well with the situation of the entrepreneurs in 2020. With so much uncertainty around, they dived more into the online tools to augment their businesses. Hence, polishing the websites, getting creative with social content, embracing new e- commerce options would be new normal for most of the entrepreneurs.
In a survey, it was found that small and large businesses have changed their digital strategies. Since the COVID-19 pandemic began nine out of every ten owners confirmed that they expect to increase their use of digital tools in the current scenario.
Due to the pandemic, there is an exponential change in the people’s behavior. They have increased their screen time, thus entrepreneurs are more heavily leaning to engage on social media to promote about their services.
The future is all about maintaining and understanding the customers. If 2020 taught us anything, it’s that one cannot predict the future. By welcoming these trends, however, businesses will certainly be better positioned.