Understanding the Business Competitive Environment

When designing a new strategy for the familiarity, a warm moldiness fully analyze the respective competitive environment in sight to come up with decisions that are beneficial. A company must take into account even the minutest details regarding the contenders to understand the factors driving the mastery of the opponents. PEST compend, SWOT analysis and Michael Porters 5 forces analysis are some ways that develop an understanding of the success of the competitor firms (Porter, 1998). Some head teachers are given below which help the companies to understand the grandness of their expertise and their operations. . How square is the team of the members at the competitor firm? A firm must charge on their own team and lick towards the exploitation of expertise of these members. The other firm may perform hygienic because of their specialization in that field. However, at your company you should make your team strong to gain a competitive edge. 2. What are the practices (opera tions) adopted by the competitor firm? This helps the firm to gather knowledge on the procedures and methods adopted by the competitor firms.This knowledge helps the company in making its processes efficient in order to stay ahead in the industry and also so that the firms practices can become a benchmark. (Withrow, 2006). 3. What markets or market segments your competitors serve? This question helps the firm in realizing the markets that are being catered and the markets that can be tapped. If the company focuses on itself, it can capture the market of its competitors and create a allegiant customer base for itself (Withrow, 2006). 4. What are the competitors products/ services prices and promotional material strategy?This helps in gaining an insight about the strategies that the companies adopt in order to capture the market. The firm must focus on improving its strategies of comprise cutting and adopting to the technological changes so that it can remain ahead of the competiti on. (Ward, n. d. ) 5. why customers buy from your competitors? The answer to this question tells about the added value that customers receive as a result of using the competitor products. The firm must focus on providing best services to the customers so that they remain loyal.