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For anyone trying to grow a business, one of the first tasks is to map the competitive landscape. With
a good understanding of the competition facing your company, you'll be able to spot and exploit
opportunities as they develop. These dozen points should help you draw and refine your map,
beginning with your earliest efforts to plan your new venture and continuing for as long as you stay in
business.

1.   Bring a notepad and pencil to competing establishments and ask a lot of
questions. Testing a firm's ability to serve you will reveal much about their business. And don't
just pretend to shop from competitors. Buy something. It's the only way to gain first-hand
experience with the company's products and services.
2.     


    Where
did they go to school? Where have they worked? How long have they been in the business?
What are their strengths and weaknesses? This information can help you anticipate your
competition's moves. For example, a local, life-long farmer will run an Indiana seed company
very differently than will a young MBA.
3.   
  If you're competing against a publicly traded firm, consider
buying a few shares of its stock. That way you'll receive regular updates on the firm's financial
results and business strategies.
4. c 
   Why do they buy from your competitors? Is it because
of the quality of the product or service, the price, the location, or the customer support? What
do they dislike about the company? What do they wish that company would provide? Why
don't they buy from you?
5.     Online services such as Dow Jones Interactive allow you to search through
thousands of publications for information about your competitors, especially if they include
large companies. Searches are free, but you'll have to pay a fee for articles on Dow Jones or
for a monthly subscription. You also can learn a great deal about competing businesses simply
by going to their Web sites.
6.

     As an entrepreneur, you already know that companies must disclose
information to government agencies. Such disclosures are required to undertake public
offerings, receive building permits, register for patents or trademarks and so on. Many of those
filings are public record and contain information about the company's goals, strategies, and
technologies.
 È. ß     Many are virtuoso researchers and can save you a great deal
of time and effort. Your library also will have local publications that may have information on
competitors in your area.
8.      Your competitors' representatives will be
pounding their chests about their firms' products or services. Take advantage of the
opportunity to familiarize yourself with their product offerings and strategies, and how they sell
themselves.
9.  
   A competitor trying to increase its market share might lower
prices; a firm attempting to increase profits may cut costs; and a business that wants to
accelerate sales growth might kick off a marketing campaign. If you know your competitors'
goals, you'll be better able to anticipate their strategies.
10.  
  
  These days, the competitive landscape can
change faster than Net-stock valuations. A national chain may not have entered your region
yet ² but what if it does? Likewise, companies that don't currently compete with yours might
shift their focus and pit themselves against your firm.
11.      
 
 
  You might appoint someone to
work with you on the task, doing research and the like. But as the entrepreneur, you're in the
best position to appreciate and act upon information about your competitors.
12.   
 
 Your competition includes anything that could
draw customers away from your business. For example, movie theaters compete not only with
other cinemas, but also with restaurants, live music venues, theater ²l even cable TV, video
rentals, and video games.