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Assessing Competitors with Data Analytics
When asked to describe their
competition, most company decision makers will focus on one or two aspects
of competing companies that reflect recent head-to-head successes or
failures in the marketplace. Typical comments might include 'Their
aggressive pricing strategy caused us to miss our quarterly target,' or
'Their older technology allows us to beat them on features.' While this
attention to contemporary
experience says quite a bit
about human nature, it also
reveals the risks associated
with subjective evaluation of
the competitive landscape and
the assumptions that can result.
Seeing the True Competitive
Landscape
One of the underlying
advantages
of assessing competitors using data
analytics is the
ability to draw attention to
factual comparisons that are
often overlooked during the
course of normal daily business
activity. Data visualization
invites the viewer to perceive
existing or potential
relationships by fostering the
suspension of subjective
prejudices and assumptions about
competing companies.
Capturing & Deciphering
Situational Information
Situational information is information that describes market
relationships that are a product
of the existing market
environment. To the extent that
markets continually change
(albeit more slowly for mature
markets) this information can be
considered perishable. Such situational data can reveal business
opportunities that will only be actionable for a finite
period of time. Situational
information can be a valuable
asset when analyzed using
analytics and visualization tools,
particularly when focused on the
competitive landscape.
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