Published on December 26th, 2018 | by Jose Vasquez0
What to Look for in Your Startup Tech Company’s Competition
Keep an eye out for these qualities and strategies in your startup tech competition.
One of the most important sections of your business plan, and one of the most important areas of research for your company going forward, is going to be competitive analysis. But which factors should you consider when analyzing the competition?
- How long has this company been around? What has it done in that time? If you’re starting a business from scratch, there’s a lot to learn about a competitor’s early days of development.
- It’s also important to learn more about the audiences those competitors target. In an ideal world, you’d be able to target a slightly different demographic segment, so you can avoid competing so directly.
- Products and services. What is this company selling? As a competitor, they’ll have something in common with you, but do they specialize in that area, or do they offer a diverse suite of products and services?
- You can gain a serious advantage over a competitor if you can offer a similar product at a reduced price. Look at their pricing critically, and see why they charge what they charge—as well as whether you can find a way to offer the same thing for a discount.
- Customer service. What level of customer service do they provide, and how big a priority is it? Better customer service is an easy way to differentiate yourself, so long as you learn from the mistakes of your competitors.
- Sometimes, a simple change in the tone or image of your brand is enough to differentiate you from the competition. So learn what you can about your competitor’s brand, and find a unique angle to take for your industry.
- Long-term strategy. Where is this company going from here? Are they looking to expand internationally? Maintain a small, local presence? You can create a complementary strategy to avoid directly competing with them.
Obviously, this is just a smattering of the most important points you’ll need to consider in your competitive analysis. If you want to get more in-depth, there are dozens of points to cover. Contact me today, and I can help you come up with a much more in-depth competitive analysis for your business plan.