Build a Compelling Competitive Matrix.pdf

Build a Compelling Competitive Matrix.pdf

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  Build a Compelling Competitive Matrix
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  What is a Competitive Matrix? Showsyour competitive landscape and how you are positioned against your competition •You are in control - you pick the strengths that best represent your business •Your strengths must be relevant to your target market •Your combination of strengths must be believable
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  Purpose of the Competitive Matrix MarketingTool – even though people reading it know you can manipulate it •Investors love seeing you up and to the right •Shows viability of the business (helps prove there is a market) •Illustrates competitive strengths and differentiation •Quick and easy way to see the competitive landscape Steps in Building Your Competitive Matrix Part 1 - Select your competitive strengths to measure •Part 2 - Select your competitors •Part 3 - Evaluate and plot your competitors
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  Part 1 -Steps in Building Your Competitive Matrix Step 1 – Come up with a few key strengths of your business (max 5 to 6) Here are some examples: •Quality •Price •Authenticity •Completeness of offering •Breadth of solution or product line •Depth of solution or product line •Expertise •Service level •Convenience •Sophistication of technology •Ability to customize
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  Part 1 -Steps in Building Your Competitive Matrix Step 1 – Examples for a Chocolate Business •High Quality Chocolate •Uniqueness of Amazing Flavors •Beautifully Designed Chocolates •High Level of Service •Amazing In-Store Experience •Unique Packaging •Personalized Chocolates
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  Part 1 -Steps in Building Your Competitive Matrix Step 2: Score your strengths - ask yourself, which strengths are most important to your target market? •Your strengths must be RELEVANT and very important to the market •Ask yourself: Which strengths are most important to your target market? •Score each strength based on its relevance to your target market •Cross off any strengths that are not relevant
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  Part 1 -Steps in Building Your Competitive Matrix Step 3 – Identify the strongest pairing of strengths •Ask yourself: Which combination of strengths makes me completely unstoppable? •Compare each strength against the others one by one •Look for the two strengths that, when combined, create that 1+1 = 1 million •Also, see how each pair of strengths makes you the strongest amongst your competitors •Final check – check to make sure that combination still makes sense to your target market
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  Part 1 -Steps in Building Your Competitive Matrix Step 4 - Express each strength in a range or spectrum (low to high, bad to good, small to large) Examples - •No Service ----- White Glove Service •Small Selection ----- Large Selection •Limited Solution ----- Compete Solution •Low Quality to Highest Quality •Highest Price to Lowest Price •Conservative ----- Progressive •Inconvenient ----- Very Convenient •Processed Ingredients -----Healthy/Fresh Ingredients •Non-Customizable ----- Highly Customizable
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  Part 2 –Select Your Competitor A few words of advice: •Pick 7 – 10 competitors •Pick a wide variety of competitors •Don’t just pick the weak competitors •Make sure you pick some bigger names/well known names if you can (makes you look better) •Don’t be afraid to have competitors in the 4thquadrant
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  Part 3 –Evaluate and Plot Your Competitors A few words of advice: •Be fair - people will see through you if you try to manipulate •Use your best judgement based on your industry knowledge •Run the plotting by a few people who know the industry to see if they agree •It is OK to be a bit generous with your positioning