No matter what your area of operation is, sooner or later there ought to be competition from other businesses. Big or small, all companies would face competition eventually. Hardly there is any company in the modern days which enjoys absolute monopoly. Hence, the study of competitors and researching their strategy have construct an important part of leadership development program.
The importance of the word of wisdom from in studying competition is once again recognized in the Art of War for managers.
The word of wisdom from Sun Tzu which says that- 'you would surely win if you know yourself and your enemy' holds the crux of modern days' business theories. It is almost impossible to succeed without knowing the strategies of your competitors. You need to be equipped with the knowledge of what you're competing against in order to survive in the competitive market. Competitors' analysis has, therefore, became important in leadership development. Now following are the tips from the greatest strategist of the world, Sun Tzu, in understanding and therefore planning accordingly against your enemies.
Know your competition: When you are planning to penetrate a market it is important to know who yourcompetitors are. Similarly, if you are already in the market, the same strategy should apply in Knowing the new entrants. Keep a close watch and also learn the policies of your competitors. The advancement of information technology has made it almost impossible for one to keep his policies secret. So, you must take advantage of it.
Identify the competition areas: The competition may either be in terms of price or product or in the method of approaching to the customers. The 'Art of War' describes that- 'He wins his battles by making no mistakes.Making no mistakes brings certain victory, for it means conquering an enemy that is already defeated.'
Find information about your competition: Information about your competitors is the most useful resource in leadership strategies. It is important to find the places where you can find information about your competitors. The local administrative offices are good places for such information. Also, in a corporate environment there is always someone who would talk, you'd may build ally with such people. Networking is another useful tool, you may use it to its fullest potential.
Identify the weak point: According to Sun Tzu Art of War, the greatest success lies in the form of 'winning without fighting' and to win without wasting resources you would need to identify the weaknesses of your enemy to destroy him. The knowledge of competitor's weaknesses, therefore, makes an important study in leadership development.
As a business owner your objective would be to eliminate competition without destroying the market. In the 'Art of War' Sun Tzu has mentioned that the 'winning without fighting is the foremost skill'. He also states that ' he whose army is united in purpose throughout all its ranks will win'. Hence, it is important for the businesses to motivate its employees for the same cause and for that leadership development is necessary to maximize the potential of the employees. Also, one may promote the concept of situational leadership to keep the employees focused and united for a purpose.