In the article, “Competitor Analysis Understand Your Opponents,” we learn the importance of analyzing your competition in order to improve marketing in your given sector. This article outlines several reasons why we should know our competitors and understanding the forces that make market either “unattractive or attractive.” I came across several additional articles in my research into this subject further that discussed the importance of competitor analysis. One in particular discussed Starbucks as an example of a company that did its homework by looking into competitors and their customers, and was able to dominate its market.
The article, “Step 3 for a Successful Startup: The Importance of Market Research,” states that Starbucks made several modifications in its company to cater to unmet customer needs. They took a look at their consumers as well as their competition in order to revolutionize and become the leader in their industry. They turned buying a coffee into an experience and found an untapped market while looking into competitor standards and practices. Throughout the MPM program, we have read several cases on Starbucks and the innovative practices they utilized in order to make it to the top of their industry. In the article “Starbucks’s Secret Weapon,” the author mentioned that the company used of market research to reinvigorate sales during a slump in 2008. They took a look at their competitors and capitalized on what had not been done yet. I think this was an interesting example of a company that knew their competition, but also knew what their customers wanted and needed.
It is definitely important to know your competition, because they probably know a lot about you and your practices as well. This knowledge gives you an advantage and allows you to get a big picture about your overall market and company. This also allows your company to strategically develop your marketing in order to better serve your community.
Jenna Goudreau, “Starbucks’ Secret Weapon,” Forbes.com, November 11, 2011, http://www.forbes.com/sites/jennagoudreau/2011/11/02/starbucks-secret-weapon-michelle-gass/, accessed July 9, 2015.
Shawn O’Connor, “Step 3 for a Successful Startup: The Importance of Market Research,” Forbes.com, April 23, 2013, http://www.forbes.com/sites/shawnoconnor/2013/04/23/step-3-for-a-successful-startup-the-importance-of-market-research/, accessed July 9, 2015.
Marketer’s Toolkit: the 10 Strategies You Need to Succeed, “Competitor Analysis Understand Your Opponents,” Harvard Business Review, 2006, https://cb.hbsp.harvard.edu/cbmp/content/37901011.