Competitive mapping is a common metric for any business’s strategic planning and analysis. However, understanding the competition is not the end.
The Johari Window gives a strong notion on how to proceed with the same.
Let’s use an online store that specializes in selling luxury watches as an example.
The Johari Window model is as follows:
The information that is “Known to Self” and “Known to Others” is highlighted in the first window, or the “Open Area,” for our business.
- Brands being sold?
- Offers being provided?
- Product pricing?
and other data that is purposefully made public in order to influence decision-making.
To determine how to study competition, one must first understand this information.
As an example, If the rival is able to sell the identical watch for less money, it is necessary to take action to figure out how?
Finding the “known to the competition” and the “unknown to self” is what this entails.
The second window under consideration highlights this fact.
The competition’s unique selling proposition is the “known to others and unknown to self” or “Blind Spot”.
- The competitor’s cost of raw materials?
- How long did the rival spend developing the product?
- Difficulties the rival faced in expanding his business?
The general public cannot access this data. But, analysing the competition and developing a plan to stay one step ahead requires this information.
Using this knowledge might also help you follow what has worked for the competition and steer clear of what hasn’t.
Nevertheless, locating this information is not simple.
Finding the answers may involve speaking with former employees, posing as a customer and posing bizarre inquiries, or even working for the rival company.
Competition, however, is a two way street.
It is equally necessary to defend competition in addition to understanding it. The third window of the model, called “Hidden Area” emphasizes “unknown to others” and “known to self.” Which helps the business establish defensibility and build a moat.
Defensibility or MOAT aids in the establishment of a competitive advantage for the company. They might consist of:
- Customer Data
- Supplier Data
- Tech Backend
Understanding the competition and creating a competitive advantage is not yet complete. The fourth window has an equal impact on everyone.
This fourth window, describes “unknown to others” and “unknown to self” or the “unknown — unknown”
The establishment of ONDC is a recent example of the unknown-unknown in the e-commerce sector. With its UPI-like architecture, ONDC is poised to disrupt the e-commerce landscape.
The technology’s potential is still unexplored. And this has impacted the entire e-commerce industry similarly.
Takeaways….
Competitive analysis is crucial for examining businesses from an investment standpoint, in addition to being a strategic necessity for businesses.
While competition can pose a risk to a company’s growth, it also presents an opportunity when viewed as a potential source of acquisition by existing competitors, which would ultimately result in an exit from the investment, from an investment standpoint.
Author (s)
Kanuj Jadwani
Rakesh Rana
