How Your Industry Competitors Might Be Beating You
Competition is often the reason that businesses fail. Perhaps they fail to carve out enough of the audience for themselves and never reach profitability. Maybe the competitors are simply too well-entrenched in the niche and have all the resources that a new company struggles to match. Dealing with competition is one of the biggest obstacles that you could face as an entrepreneur or business executive.
The only way to catch up to and surpass the competition is to understand how they operate. This requires thorough market research to learn about the strengths and weaknesses of the competition that can enlighten you about opportunities for growth.
The challenge is understanding what competitors are doing right that has put them in an advantageous situation. Here are a few reasons why your competition might be beating you.
Strong SEO
Search engine optimization is a marketing tactic that is being fully embraced by companies in 2023. Essentially, it is the process of strengthening your online presence so that people are more likely to find your website when browsing the Internet. SEO is all about ranking higher on search result pages for queries related to your business.
For example, a supplement brand that wants to rank for keywords like “dietary supplements” would need to take steps to improve its website and curate content around that keyword. Those steps could include building links, adding relevant headings, optimizing technical SEO on their web pages, and including meta descriptions.
Refined Recruitment Strategy
One of the main reasons your competitors are performing better than you is the team they have built. Strong employees make strong companies, and the top brands have invested heavily in targeted recruitment to ensure they are hiring the best talent in the market.
While you spend weeks or months accepting applications and perusing them for the best candidate, competitors are partnering with outside firms or third-party job boards to vet candidates before stepping in for interviews. If you are in the healthcare space, competitors may be relying on the network of physician staffing consultants to quickly identify potential talent. A refined recruitment strategy allows your competitors to avoid wasting time while still obtaining qualified employees.
Adoption of Cloud Computing
Business technology has come a long way, especially in the last decade. If brands required computing power decades ago, they would have to host their own servers on-site. Cloud computing allows companies to pay for what they use without having to maintain their own infrastructure.
Not only does this save your competitors money, but it also grants plenty of benefits such as accessibility and scalability. Since the cloud is accessed through the Internet, workers can access tools anywhere with a wifi connection. There is also very little delay if a brand needs to scale, as they simply pay for greater services rather than having to purchase and install more servers on-site. Cloud computing gives competitors a big edge if you are not taking advantage of similar tools.
Business Coaching
Leadership is a skill that can be developed. No entrepreneur or executive is born with the knowledge needed to direct a company toward success. It is learned either through experience or mentorship.
Business leaders often invest in their own education to improve their leadership skills. Often, this involves a business coach or consultant that can help them identify shortcomings and how to improve as a leader. If your competitors are investing in the personal development of leadership and you are not, your company could fall even further behind.
Greater Funding
Companies at every level, from startups to giant corporations, will seek investment from outside sources. This funding allows competitors to act on new initiatives and grow. After all, you cannot make money without spending money.
Your most successful competitors probably have access to greater funding than you do. Securing funding is all about establishing a business network and having a compelling pitch for potential investors. Brands that have done the work to secure investors have the resources needed to develop better products, hire more people, and utilize more effective tools.
Start with Competitor Research, Then Act on What You Learn
Counteracting the strengths and weaknesses of your competitors is the only way to beat them. Does the brand have a strong SEO presence that places them at the top of results pages? Then find other keywords that you can try to rank for or strive to displace the competitor at the top. Are they bogged down with a bloated recruitment strategy or have they refined it to avoid time-wasting? Then you should do the same. Do they take advantage of cloud computing, business coaching, or access to greater funding? Then these could be reasons why they are at the top of the industry.
Determine the strengths of the competition and find ways to work around them. Identify weaknesses in their operations or strategy and exploit them. It all starts with understanding your competition completely, so do not neglect the research phase.
