Step 4: Competitors
Define who you compete with, and how to win.
Share battles often lead to below average revenue growth because the cycle of market share give-and-take rarely results in a permanent share gain for any one competitor. Sustainable revenue growth from share gain comes from changing the product or its delivery enough to create what is effectively a new product. Price wars do not result in share gain driven revenue growth because they can result in a decline in sales, and are not repeatable. This is because customers will eventually push back, thus eroding any short-term revenue growth.
- Strategic market group
- Competitor SWOT analysis
- Win strategy
Once your company understands its competition, it is time to move on to Step 5: Go-To-Market.