Researching the Competition: Be Your Own "007"
By Chase McKeague
Though companies have always kept tabs on their competitors, there is an ever-increasing need to do so in a far more sophisticated and organized way. With the Internet, monitoring products, prices and promotions and peeking into the operations of your competitors isn't as difficult as you think.
Locating the Competition
If you already know who your competition is, use a search engine like Yahoo, Lycos or Excite to track down their Web sites. Many companies offer press releases, product information, organizational charts, distributor lists and demographic data that provide outstanding competitive information. If you are not sure who or what your true competition is, there are a few avenues you can travel to track down needed information.
Ask the question, "Is my competition public or private?" Publicly held companies (those that sell stock to the general public) are required to disclose financial information to their shareholders and to the Securities and Exchange Commission (SEC). Locate your Public Registrar's information and request a copy of the competition's annual report free of charge.
If the competition you are researching is competing with Fortune 500 corporations, check out the 100 largest companies on the Internet at www.web100.com. Once inside this site, you can search by industry or simply browse the list of names. Lastly, if your competition operates on a smaller, local level, take a look into your chamber of commerce's Web site where you can access information on most any business in your city.
Keep on Top of Things
Researching the competition also requires keeping a pulse on local, national and industry news. For example, if you are in the automotive industry, take a few minutes each day to peruse through Auto.com (www.auto.com), a resource for automotive daily news and reviews. Other good sources for business information from around the world are the Associated Press site (www.ap.org), and the Business Section of online USA Today (www.usatoday.com).
Staying abreast of industry trends and changes is half of the battle. Management and staff alike should be encouraged to surf the Internet and collect pertinent information. Findings can be shared in staff meetings or on a company Intranet, should you have one. Until you are aware of what both the industry and competition are doing, you can't position yourself accurately in the market.
The Old-Fashioned Way
If you want to sneak a peek into the world of the competition is it necessary that it be done online? No. You can still do things the old-fashioned way and actually visit the retail operation and perhaps, even ask questions yourself. People enjoy talking about their business and success, and if you present yourself in a non-aggressive position, they may even be flattered by your questions and open up with helpful information.
However, if this approach is too confrontational, so you must obtain information in other ways. Here are some of the keys to gathering competitive knowledge:
Focus on what they do better. Always take away at least one thing you have learned from the competition.
Tour the store like a regular customer. Look for things that customers would look for: How are you greeted? Do they have what you want? Is it correctly priced? Carry a small note pad and jot down notes that you can summarize after you leave.
If you aim to mimic a competitor, make sure you copy the good stuff and not the mistakes.
Don't lose sight of the big picture. For example, Barnes & Noble and Borders focused so much on each other, they never saw Amazon.com coming.
Visit your own stores, too. There is no clear way to make sound improvements to your business until you have identified what your operation is lacking. The best way to achieve this is to look at your store from the vantage point of a customer.
A lot of useful information can be found if you take the time to look in the right places. The tips mentioned will get you started on your way to learning more about your competition and could help identify your next big business opportunity.
Chase McKeague has been President of National System, Inc. since 1984. He is the third generation to oversee daily operations and development of the 80-year-old advertising information company. When not working, McKeague spends time with his wife and three children and works with several St. Louis area charitable organizations. cmckeague@dealeronline.com
