How to beat competition in business

You are in the business of running a fast food chain. McDonald’s and Pizza hut are threatening your business . Discuss one major step you would take by environmental analysis.

ABHIRAJ P GEORGES2 MBA

ROLL NO. 02

ENVIRONMENTAL ANALYSIS

• Environmental analysis is relatively qualitative and involves the identification of and analysis of environmental variables, which affect the business.

• Some frameworks of environmental analysis have received large amounts of attention in the world of business management literature, such as SWOT analysis and PESTEL analysis.

HOW TO BEAT THREAT

Identify the Weaknesses of Your Competitors.

• Determine the strengths and weaknesses of your competitor through an exhaustive and critical examination of his literature, his products and services.

• The most effective way to evaluate a competitive service is to pose as a customer. 

• You can also talk with the customers and suppliers of your competitor.

• Fish out important information such as defects in and dissatisfactions with what your competitor sells or makes.

• Once you know where your competitor is vulnerable, you can concentrate on the superior features that you have to offer

Determine Your Vulnerable Spots.

• A careful examination of your competitor’s product and methods can help you determine your own soft spots — those points at which you are vulnerable. Knowing your weak points will force you to seek out ways to improve them or compensate for them.

•  Understanding your weaknesses can point the way toward what will be unique about your business, and help you target what will benefit your customer.

Know What Makes Your Customers Buy.

• Frequently, a customer fails to buy because a business neglects to mention the one consideration that weighs heavily with her or him. It is not always easy to figure out what the factor is.

Learn from the Mistakes of Others.

• Every businessperson should learn from his or her mistakes, but you can also learn from the mistakes your competitor makes.

Be on a Lookout for Good Ideas.

• Good ideas are everywhere, if you know where to look. If it is true that you can learn from a competitor’s mistakes, it is equally true that you can cash in on a rival’s successes.

• This does not mean you should be blindly imitative. It does mean that you ought to be alert to ideas that can stimulate your own thinking. 

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