The Sliding Scale Model: Identify your competitors
An essential part of running a profitable business is knowing your competitors in the market. It is therefore a good idea to perform a competitor analysis to get an overview of the size of your competitors and their importance in the market. The slider model is an easy and useful tool to give you an overview of your competitors in the market. If you're not yet familiar with the model, read on for a quick introduction.
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What is the sliding disc model - and how do you use it?
The sliding disk model is a smart model that you can use to identify your competitors in the market. The model takes the form of a classic sliding target that is divided into four different rings. The competition increases as the size of the rings increases - the further out you move. The four rings of the model are based on the four elements:
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When conducting a competitor analysis, it is also important that you pay attention to the following factors:
- Focus on a few competitors to keep an overview, 3-4 max.
- Involve your customers in deciding competitors - where would they shop if they didn't shop with you?
- Compare your store to the competition and point out what makes your business particularly attractive.
Illuminate the competitive situation with the 4 elements
The sliding scale model is based on four rings that determine the size of the competitive field. The final assessment depends on how you see your competitors. If you compete on price, you should pay attention to all products in the same price range. If you operate in a niche market, it's the specific products that compete to be the best in the market. It's therefore a good idea to get an overview of the market and your competitors.
Client-site tracking vs. server-site tracking
In the inner ring, the competitors are all the companies that offer the same product or service at a similar price as your company. The target audience will typically include your products as more or less the same, which means that the competition is narrow and primarily based on the brand value of each company. A classic example of this type of competition is Coca Cola and Pepsi.
Same product category
In the next ring, the competitors are companies that offer products in the same product category as your company. Here, the products will not necessarily have the same price, which often becomes the deciding factor. This also means that the competition in this circle is a little wider. An example of this could be the airlines SAS and Norwegian, which both offer flights but at different prices.
Same basic need change
In the next closest ring, competitors are companies that meet the same consumer needs as your company does - without necessarily having similar products. This can be seen as both an advantage and a disadvantage, as one can replace the other. An example of this can be airline and train companies. Both companies provide a journey/transportation, which is the essential need that the consumer is looking to fulfill.
All products
In the outermost ring of the model, every company that meets different needs is considered a competitor. This means that there is a broad competitive situation here, where your company is basically competing with all companies for consumers' income. Competitors can range from beauty products to kitchen items, for example.
Do you need help creating your marketing strategy?
This was an introduction to how you can get an overview of your competitors and how they position themselves in the market. Knowing your market and which companies to pay particular attention to is an essential part of running an efficient and growing business. If this post has made you curious about how else you can investigate your company's competitiveness, don't hesitate to contact us.
At Amplify, we are a marketing agency that deals with SEO, advertising on Google and additional digital marketing - we are also experts in creating digital visibility and reaching the target audience both through Facebook advertising and SoMe marketing. Contact me or one of my colleagues at Amplify on tel. +45 70 60 50 28 or via email at info@amplify.dk.
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