Competitor Analysis?

Quite some time ago, I was involved with a company that was expanding their business into a completely new territory. I was the most senior technologist in the company and had a voice at the highest level.

A significant body of work had been undertaken prior to entry into the new market. It was very comprehensive, but after analysis I noticed one glaring omission in my opinion. There was no competitor analysis. For me, this was deeply concerning.

At the next stakeholder meeting I strongly recommended undergoing a complete competitor analysis otherwise I considered the company was going into the venture partially blind. Unfortunately I wasn't persuasive enough as the organisation wanted to move quickly. After struggling for several years, something I consider fairly predictable, they eventually conducted a thorough competitor analysis.

Fortunately throughout our operations at Michael Hill, competitor analysis is part and parcel of ongoing business. Having a deep understanding of the competitors business model and the cause of success is essential in my opinion. This approach has benefited my current organisation greatly and some of our greatest knowledge has been learnt from outside the industry.

If you find yourself reviewing a proposal without a thorough competitor analysis being completed, don't let it go ahead without one. Use this as ammunition, especially if the initiative is of strategic value.

For your own personal growth, I do recommend spending time gathering a deep understanding of other companies business models outside your industry and considering the effect of their application to your current organisation.

Have a great day!

Ross.