There are so many ways you can get ahead of the competition when you are a business owner. None of them are easy, but they reward is that you are noticed more by consumers, gain more and more of a following and become a powerful voice in your own industry. Is that not the dream then? To be able to stand above all others in your industry, but also be someone that is a thought leader for your rivals and consumers? But getting ahead, if far easier said than done. The worst thing that can happen to you in your pursuit to beat your rivals is becoming stuck in an echo-chamber of your own making. If you are not in contact with the industry, you will never succeed in edging ahead in sales and growing faster than anyone else. Before you make waves, how about you listen to the ripples in the water first.
The external threats
Much like an observer watching a chess match, you should sit back and watch what’s going on while also planning your own moves in your mind. According to one of the most used and respected analysis strategies of the corporate world, there are external threats from consumers, other businesses and companies that have a direct impact on industry rivalries. Porter’s 5 forces examines how consumers can bargain with businesses and therefore how suppliers and manufacturers can also take similar steps. The substitute forces are also to be treated or thought of as piranha. They may be small, but in great numbers they can tear your business apart by jumping in to solve a problem for consumers when they no longer attracted to your products and services. This then leads onto the threat of entrants, i.e. brand new businesses that come in to satisfy a current gap in the market. Study these 5 forces and you will gain a better perspective of what external threats you face in your own industry.
Invest to investigate
Companies and businesses will use every tactic in the book and then some to make sure they know exactly what’s going on in their own field, sector and industry at large. When there are literally billions and billions perhaps even trillions, of dollars to be made and at stake, you better believe that businesses will invest to investigate. If you invest in certain financial assets, you get a picture of what stock is going up and down, and therefore their popularity with consumers. At CMC Markets they have a CFD you can invest in which is a diversified portfolio of many different stocks. Explaining what leverage and value positions you should aim for, they will walk you through the process of investing in such a complex but ultimately low-risk instrument. The key is to use any drops and rises in a portfolio of business stocks relevant to your industry as indicators to what kind of strategy is working for your rivals.
Before you can conquer the world, you have to take over an industry and be the top dog. However, your rivals are trying to do the same so instead of making any rash moves to beat them quickly, sit back and feel the ripples in the water.