Every website has online competitors. It’s important for you to know who your competitors are and where they fit in your market. The information you gather on your competition can help you position your online business to serve a segment of your market that your competition may be missing.

First, identify who your competition is. Do an online search for other websites that offer what you do. Make a list and leave room to write next to each entry. You’ll need that space to record all the details you can about each competitor: price, number of products, ad strength, services offered, etc.

Next, analyze the strengths and weaknesses of each competitor. Why do your potential customers buy from them? Is it price? Is it reputation? Is it value? Is it service? What perks do they provide when a customer buys from them?

This list should be ongoing and constantly changing. Go back and fill in intelligence on each competitor as you run across it. You may hear something from a customer or have someone tell you something in casual conversation. You may see something in a competitor’s ad. You may even want to pose as a potential customer and call a few of your competitors to find out the details you’re after.

Next, rate each competitor based on their ability to take away your potential customers. Take the top three or four and concentrate on them. What market segments are not being served? What benefits can you advertise that they are not? Why might someone hire you over them?

Finally, judge your company by the same standards you used to judge your competition. Use that self-analysis to find where you need to change, find what services you should add, and how you might advertise that will catch the attention of potential customers against your competition.