If you are in the early stages of planning a wedding cake decorating business or even if you’ve been in business for a while, it is important that you ask yourself the following questions:
- Who are my competitors?
- What customer needs and preferences am I competing to meet?
- What are the similarities and differences between their products/services and mine?
- What are the strengths and weaknesses of each of their products and services?
- How do their prices compare to mine?
- How are they doing overall?
- How can I compete? Offer better quality services? Lower prices?
- How am I uniquely suited to compete with them?
These questions are all part of a competitive analysis. Often we think about these questions, but perhaps only in general or vague terms. We know a little bit about our competition or we think ” I don’t need to know what my competitors are doing because it won’t change my business…” or some such argument. Unless you sit down and take the time to answer these questions (on paper), you are sticking your head in the sand and wasting a valuable opportunity to improve your business and ultimately make more wedding cake sales….
I often take a look at WeddingWire.com to provide a simple list of vendors in the US. Check out what the cake vendors are doing in cities near you. What are cake decorators doing in other cities that you find interesting?
Go out and do that competitive analysis you may learn something about your own business by looking at the competition.