How to build a simple, but telling competitive analysis

by: David Karl

During my days as an independent consultant, companies most often asked me to help them build their strategic direction. My first question was as reflexive as swatting a mosquito on the back of my neck. “Can I get a copy of your competitive analysis?” That was usually followed by a blank stare.

Trying to build your financial institution’s strategic direction without a competitive analysis is like walking barefoot through a cow pasture on a moonless night. You have no idea where you’re going, how far you’ve gone, whether you are about to run into something, fall into something, or step into…something.

A competitive analysis is NOT determining if your product is priced effectively! It’s a determination of where your competition is best able to compete and how they are actually competing. Believe it or not, your analysis may show your competitor is using a flawed strategy—which helps you build your winning strategy.

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