Competitive analysis is your measuring stick against the rest of the world. To use a boxing analogy: your form may look impressive when you are boxing a punching bag, but it cannot hit you back. There are also no surprises and no unknowns. Ultimately, to see what you are made of, you have to be pitted against an opponent. Your capabilities, in and of themselves, may be impressive, but would they stand up to your leaner and meaner opponents? Let’s look at the reasons why you should mind your competitors and predict their possible actions; what you need to know about your competition; how to find this information; and how to put all the pieces of the competitive analysis puzzle together to exploit your competitors’ shortfalls to you advantage and outdo them through strategic actions.
When I consult for companies, I often hear their business development professionals say, “Why should I worry about my competition? We have what we have to offer, and as long as we can give the government the best price we can honestly give them, we should be just fine. If they don’t select us – well, so be it. We wouldn’t want to perform this work at a loss anyway.”