They’re not a competitor. They’re just another option
Reframing the "T" in the classic SWOT Analysis
I'm all about “a rising tide lifts all boats”.
So, whenever the Marketing 101 SWOT Analysis comes up, I’m ready to share my reframe of the competition part of the “T” with anyone nearby.
As a refresher, or introduction, each letter in the SWOT Analysis stands for identifying your:
S - Strengths
W - Weaknesses
O - Opportunities
T - Threats
I like the descriptions for each category found on business.gov.au, and what they list for Threats:
Threats include external factors beyond your control that may put your business at risk. Consider putting in place contingency plans for dealing with them if they occur. Ask yourself:
What factors beyond our control could place us at risk?
What potential competitors may enter the market?
Are our resource and material supplies unstable or insecure?
Are there any changes or events that might negatively impact us (such as consumer behaviour, regulation, policies or new technology)?
In today’s post, I’m talking about the first bullet point: Competitors. Specifically, how we can view their “threat” through a different lens.
Threat is “a statement of an intention to inflict pain, injury, damage, or other hostile action on someone in retribution for something done or not done” (Oxford Dictionary).
When talking about competitors, is the definition of threat what we’re doing when setting up a business? Or what happens when someone else opens a shop down the street, next to you, or online?
If your answer is “yes,” then you’re in the right place because we need to add some love to your operating manual.
If you said “no”, you’re also in the right place.
The word “threat” is not appropriate for our purpose here. To perceive peer businesses and the owners and operators behind them as a threat can breed hostility.
Hostility does not support a rising tide.
Hostility creates a Us vs. Them, Them vs. Us mentality that can sabotage our business and personal well-being.
Does the world need any more division?
It does not.
That’s why I offer a substitute for the word “Threat” in the SWOT Analysis.
It’s not another “T” word, so it’s not a totally tidy SWOT reframe. However, it is more conducive to a thriving Commercial and Community Ecosystem.
The word is: OPTION
Other businesses are not a threat to your business. They’re another option in the marketplace for people to choose from.
Your business is not a threat to other businesses. You’re another option in the marketplace for people to choose from.
What do options provide? Choice. Customers have the choice to decide where they go for what they need and want.
Being one option out of a few or many, gives you, the business owner, both the challenge and the opportunity to offer VALUE to that customer.
Value can look different and will be different for everyone. Some customers value low prices over high prices, no-fuss convenience over high-touch customer service, and vice versa. Value can be perceived through the branding and location of a brick-and-mortar store.
Your job is to identify what type of value you offer and how to deliver it in your unique way.
When you offer your products, services, and expertise in a way that is energetically sparked and true for you, what the other guys … your “competitors” do, doesn’t even matter.
You’re so focused on watering your own grass that you’re not concerned about others watering theirs.
This focus attracts your people. And gives a rising tide a chance.
Besides, we know your business isn’t for everyone, as much as you may want it to be.
Consider an ice cream shop. Everyone loves ice cream! But not all ice cream shops are equal. Picture a scenario where there’s more than one in a neighborhood, with one ice cream shop being a mom-and-pop and another a large chain. One is a processed sugar bonanza, the other is artisanal and has only natural ingredients. One offers a warm and friendly experience with a smile, the other offers something closer to a high school cafeteria line order.
If given a choice as a customer, you may prefer one over the other based on your values and resources.
These ice cream shops are options in that market. Each shop owner chooses how to operate and serve their customers to keep them coming back. In this sense, every business is like these ice cream shops, and what they sell.
The key is to view the “other” shop as an option — a different flavor instead of a direct competitor.
When we see our collective businesses as options instead of competition that aims to “inflict pain, damage,” or seek “retribution” for opening for business, we can see that we all want the same things.
Every business owner wants the freedom to do business their way.
Every business owner wants to feel seen and supported by their customers and community.
Every business owner wants to make a living doing what they do.
Entrepreneurs who set up shop in your immediate marketplace wish to see the street and neighborhood thrive. Even if they don’t express the collective desire, they show optimism for the location by signing a lease or buying a building for their business.
None of this is cause for hostility. Or concern.
But it is cause for celebration, camaraderie, and collaboration.
I’m a firm believer that when we shift how we view things, like competition to options, we change how we experience the world. This shift creates ripples and may change how someone sees you and your business.
The only threat here is in your mind. So, mind your own business, offer your people value with your flavor, and keep doing it all in your unique way.
Stay OPEN,
Ana Maria
If you enjoyed this post, you might also enjoy my book (it’s been out ONE year!)
OPEN: Big Lessons in Small Retail and Living the Shopkeeper Dream
"OPEN is an invitation to take personal inventory and design (or re-design) your personal power beyond the storefront of your professional pursuits. As tactical as it is transparent, this is a must read for any Service Provider, Shopkeeper or Serial Entrepreneur looking to become their best self in life and biz."
— Kj Christensen, Speaker / Author / Strategist