Navigating the competition in small markets requires a keen eye for detail. However, paying attention to local conditions can help guide you and your business toward success while avoiding pitfalls.
But how can you do that effectively? In this article we look at how to analyze the competitive landscape and develop strategies to help you win.
Analyzing the competitive landscape
Identifying key competitors and their strategies is often the first step to dominating the competition in small markets. You want to know who you’re up against.
The most popular approach is a strengths, weaknesses, opportunities, and threats (SWOT) analysis. These analyses show where you are strong and weak and how you might take advantage of the situation.
When researching, use online tools and databases to collect information. Competitor analysis tools like SEMrush and Ahrefs can be helpful in this regard. Look at each firm’s products and how you could improve them. Find out what customers don’t like and alternatives you could offer instead.
If available, look for data on the market share of companies in the target country. A less concentrated market is often a sign expansion opportunities remain.
Developing competitive strategies
Once you have a clear idea of the terrain, the next step is to develop competitive strategies. These can help you win long-term.
Differentiating your products and services is critical. You should aim to:
- Make your products better than what’s already available
- Offer superior customer service or experience
- Focus on something people in the target market care about but can’t access yet (such as sustainable products)
- Talk about what makes your products and services unique and how they can benefit customers
At the same time, you can leverage local strengths and partnerships. This strategy might mean using your industry expertise to operate better than existing businesses, reduce costs, and pass the savings on to consumers.
Building relationships with publishers, media channels, and influencers is another option. These partnerships let you tap into existing brand recognition and build trust, going beyond “raising awareness.”
Examples of competitive success
Several businesses have navigated the competition effectively as part of their small market expansion.
For example, car rental company Hertz originated in the U.S. in 1918 but has since established locations worldwide. It operates in the Middle East, the Caribbean, Australia, parts of Africa, and small countries in Latin America, like Uruguay.
The company is successful because it focuses on customer service. Clients know they can always call someone for assistance at the outlet or head office.
Asian-inspired and London-based restaurant chain Wagamama has also seen success growing overseas. It now has locations in small countries like Malta, Slovakia, and Oman.
Its success comes from adapting its menu to local eating styles while providing patrons with novel flavours. It works tirelessly on social media to promote its food and enable people to order online.
Conclusion
Navigating competition in small markets is challenging, but the usual rules apply. Enterprises must tailor their products and services to local prospects and thoroughly research any ventures. That’s the key to success.
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