Enterprise research refers to the process in which an enterprise evaluates its competitive position and formulates an effective market strategy and competitive strategy by collecting, collating, analyzing and utilizing the relevant information of the benchmarking enterprise to understand the basic situation, competitive strategy, core competitiveness, market performance, advantages and disadvantages of the benchmarking enterprise. Enterprise research is an important part of market research and an important tool for strategic management, which is of great significance to the survival and development of enterprises.

However, in practice, there are some misunderstandings and traps in many enterprises when conducting enterprise research, which lead to the distortion, invalidity or harm of the research results, affect the strategy and decision-making of enterprises, and even cause the competitive disadvantage of enterprises. This paper summarizes five common misunderstandings and precautions from the aspects of the definition of benchmarking enterprises, the purpose, content, method, analysis and application of research, and puts forward some suggestions on how to avoid blind imitation and falling into price war with the actual case of Shangpu Consulting Company, in order to help enterprises improve the quality and effect of enterprise research and realize the competitive advantage of differentiation and superiority.

Myth 1: The definition of benchmarking enterprises is too narrow or too broad

The definition of benchmarking enterprises is the first and most critical step in enterprise research, because only by identifying the benchmarking enterprises can we effectively collect and analyze the information of benchmarking enterprises and formulate targeted competitive strategies. However, many enterprises in the definition of benchmarking enterprises, there are too narrow or too broad problems, resulting in the scope and direction of research deviation, missed opportunities or waste of resources.

An overly narrow definition of benchmarking firms means that firms focus only on direct benchmarking firms that are similar to their own products or services, of comparable price or quality, and of similar market share or position, ignoring potential, indirect or alternative benchmarking firms, such as new entrants, crossovers, and substitute providers. This approach can easily lead to an incomplete understanding of the competitive environment, an untimely warning of competitive threats, and an inaccurate grasp of competitive opportunities, thus losing their competitive advantage.

The overly broad definition of benchmarking enterprises means that enterprises regard all market entities that have relations or influence with them, such as suppliers, channel providers, customers, government, society, etc., as benchmarking enterprises, or all enterprises that have similarities with themselves, such as the same industry, the same scale, the same region, etc., as benchmarking enterprises. This approach can easily lead to unclear understanding of the competitive environment, inadequate information collection and analysis of benchmarking companies, and unspecific formulation of competitive strategies, thereby reducing competitive efficiency.

Therefore, enterprises should follow the following principles when defining benchmarking enterprises:

Guided by the needs and minds of customers, identify benchmarking companies that can meet or influence customer needs, rather than focusing on their own products or services, and identify benchmarking companies that are similar to their own products or services.

Based on the structure and dynamics of the market, identify those benchmarking companies that threaten or challenge their market share or profits, rather than using their own industry or size as a criterion to identify those benchmarking companies that are the same as their own industry or size.

Take your own strategy and goals as a reference to identify those benchmarking companies that have an impact or help on your own strategy or goals, rather than using your own region or channel as a boundary to identify those benchmarking companies that are similar to your own region or channel.

Myth 2: The purpose of enterprise research is not clear or specific.

The purpose of enterprise research refers to the reason and significance of enterprise research, the starting point and destination of enterprise research, and the basis and guidance of the content, method, analysis and application of enterprise research. However, when many enterprises conduct enterprise research, there are problems with unclear or unspecific purpose, resulting in unclear direction and focus of research, unclear results and value of research, and unsatisfactory results and efficiency of research.

The purpose of enterprise research is not clear, refers to the enterprise did not clear the root cause of their own enterprise research, just to cope with the form, go through the scene, follow the trend, or just to obtain some superficial, irrelevant, can not guide the decision-making information, rather than to solve the actual problems they face, improve their competitiveness, to achieve their strategic goals. This approach can easily lead to insufficient awareness of the importance and necessity of corporate research, insufficient investment and support for corporate research, a lack of attention to the process and results of corporate research, and a lack of attention to the quality and effectiveness of corporate research.

This approach can easily lead to unclear understanding of the value and significance of enterprise research, unclear objectives and direction of enterprise research, unreasonable content and methods of enterprise research, and ineffective analysis and application of enterprise research.

The purpose of enterprise research is not specific, refers to the enterprise does not clear their own specific objectives of enterprise research, just to obtain some general, undifferentiated, no level of information, rather than to obtain some specific, differentiated, in-depth information. This approach can easily lead to unclear scope and focus of business-to-business research, inadequate information and knowledge of business research, and unwise strategies and actions for business research.

Therefore, enterprises should follow the following principles when determining the purpose of enterprise research:

Guided by your own problems and needs, find out the benchmarking enterprise information that can help you solve problems or meet your needs, instead of being driven by your own interests or curiosity to find out the benchmarking enterprise information that is irrelevant or useless to you.

Based on one's own abilities and resources, find out the benchmarking enterprise information that can meet one's own abilities and resources, instead of taking one's own wishes or ideals as the standard to find out the benchmarking enterprise information that exceeds one's own abilities and resources.

Using your own strategies and actions as a reference, find out the benchmarking enterprise information that can support or guide your own strategies and actions, rather than relying on your own feelings or guesses to find out the benchmarking enterprise information that cannot support or guide your own strategies and actions.

Myth 3: The content of enterprise research is not comprehensive or important

The content of enterprise research refers to the relevant information of benchmarking enterprises that enterprises need to collect and analyze when conducting enterprise research, which is the core and foundation of enterprise research, and also the source of the results and value of enterprise research. However, when many enterprises conduct enterprise research, there are problems that the content is not comprehensive or important, which leads to incomplete or useless information and knowledge, inaccurate or ineffective research strategies and actions, and the competitive advantage of research is not obvious or lasting.

Incomplete enterprise research means that enterprises only collect and analyze part of the information of benchmarking enterprises, such as the basic situation of benchmarking enterprises, product or service characteristics, price or cost structure, market share or position, etc., ignoring other information of benchmarking enterprises, Such as the strategic intention, core competitiveness, innovation ability, customer satisfaction, financial status, organizational structure, human resources, cultural atmosphere, etc. This approach can easily lead to a lack of in-depth understanding of benchmarking enterprises, a lack of clarity about the strengths and weaknesses of benchmarking enterprises, and an insensitivity to trends and changes in benchmarking enterprises, thus losing competitive opportunities or suffering competitive threats.

Enterprise research with unimportant content means that the enterprise only collects and analyzes the general information of the benchmarking enterprise, such as the historical evolution of the benchmarking enterprise, the introduction of products or services, the level of price or cost, the change of market share or position, etc., ignoring the key information of the benchmarking enterprise, such as the strategic objectives of benchmarking enterprises, core competitiveness, innovation ability, customer needs, financial situation, organizational structure, human resources, cultural atmosphere, etc. This approach can easily lead to an inaccurate understanding of the benchmarking enterprise, a lack of attention to the strengths and weaknesses of the benchmarking enterprise, and a lack of attention to the trends and changes of the benchmarking enterprise, thereby reducing the competitive effect or increasing the competitive risk.

Therefore, enterprises should follow the following principles when determining the content of enterprise research:

Taking the whole picture and essence of the benchmarking enterprise as the goal, find out the comprehensive and in-depth information that can reflect the benchmarking enterprise, rather than the appearance and phenomenon of the benchmarking enterprise as the basis, find out the information that can only reflect the part and surface of the benchmarking enterprise.

Focus on the differences and advantages of benchmarking enterprises, find out the information that can reflect the differentiation and advantages of benchmarking enterprises, rather than the similarity and average of benchmarking enterprises, and find out the information that can only reflect the homogenization and mediocrity of benchmarking enterprises.

Focus on the dynamics and changes of the benchmarking enterprise, find out the information that can reflect the dynamics and changes of the benchmarking enterprise, rather than the static and stable of the benchmarking enterprise as the premise, find out the information that can only reflect the static and stable of the benchmarking enterprise.

Myth 4: The method of enterprise research is unreasonable or unscientific.

The method of enterprise research refers to the technology and means that enterprises need to use to collect and analyze benchmarking enterprise information when conducting enterprise research, which is the tool and way of enterprise research, and also the guarantee of the quality and effect of enterprise research. However, many enterprises have unreasonable or unscientific methods when conducting enterprise research, which leads to inaccurate or unreliable information and knowledge, unreasonable or unfeasible research strategies and actions, and unstable or unsustainable competitive advantages of research.

Enterprise research with unreasonable methods refers to the collection and analysis methods of enterprise information using only one or a few benchmarking enterprises, such as relying only on open, second-hand and outdated information sources, such as networks, newspapers and periodicals, reports, etc., or relying only on subjective, first-hand and instant information sources, such as their own observation, investigation, research, etc. This approach can easily lead to incomplete, objective, unsystematic and ineffective collection and analysis of benchmarking enterprise information, thus affecting the accuracy and reliability of benchmarking enterprise information.

Unscientific enterprise research means that enterprises do not adopt appropriate methods for collecting and analyzing benchmarking enterprise information, such as failing to select appropriate data types, data sources, data tools, data technologies, etc. according to the characteristics and purposes of benchmarking enterprise information, or failing to carry out effective data cleaning, data integration, data analysis, data presentation, etc. according to the quality and effect of benchmarking enterprise information. This approach can easily lead to unreasonable, unscientific, unstandardized and unprofessional collection and analysis of benchmarking enterprise information, thus affecting the usefulness and value of benchmarking enterprise information.

Therefore, enterprises should follow the following principles when determining the method of enterprise research:

Based on the diversity and complexity of benchmarking enterprise information, find out those methods that can adapt to the diversity and complexity of benchmarking enterprise information, instead of assuming the singleness and simplicity of benchmarking enterprise information, find out those methods that can only adapt to the singleness and simplicity of benchmarking enterprise information.

Based on the availability and operability of benchmarking enterprise information, find out the methods that can meet the availability and operability of benchmarking enterprise information, instead of taking the infinity and accessibility of benchmarking enterprise information as the ideal, find out those methods that can only meet the infinity and accessibility of benchmarking enterprise information.

Based on the credibility and availability of benchmarking enterprise information, find out those methods that can ensure the credibility and availability of benchmarking enterprise information, rather than aiming at the absoluteness and perfection of benchmarking enterprise information, and find out those methods that can only ensure the absoluteness and perfection of benchmarking enterprise information.

Myth 5: The analysis of enterprise research is not objective or in-depth.

The analysis of enterprise research refers to the interpretation and evaluation of the benchmark enterprise information collected and collated after the enterprise research, which is the key and difficult point of enterprise research, and also the embodiment of the results and value of enterprise research. However, many enterprises in the analysis of enterprise research, there are problems that the analysis is not objective or in-depth, resulting in research information and knowledge is not true or meaningful, research strategies and actions are unreasonable or ineffective, and the competitive advantage of research is not obvious or lasting.

The analysis of non-objective enterprise research refers to the enterprise's analysis of benchmarking enterprise information, which is influenced by its own subjective bias, emotional tendency, cognitive framework, etc., resulting in unfair, non-neutral and irrational evaluation of benchmarking enterprises, such as over-exaggerating or belittling the advantages or disadvantages of benchmarking enterprises, and over-neglecting or paying attention to the threats or opportunities of benchmarking enterprises, be overly optimistic or pessimistic about the trends or changes in benchmarking companies. This approach can easily lead to untrue understanding of benchmarking companies, inappropriate strategies and actions for benchmarking companies, and unstable competitive advantages for benchmarking companies.

The enterprise research without in-depth analysis refers to that when an enterprise analyzes the information of benchmarking enterprises, it fails to use appropriate analysis framework, analysis model, analysis method, etc., which leads to incomplete, indepth and unsystematic evaluation of benchmarking enterprises. For example, it only pays attention to the current situation or performance of benchmarking enterprises, but does not pay attention to the reasons or background of benchmarking enterprises, and only pays attention to individual or isolated information of benchmarking enterprises, instead of paying attention to the overall or related information of the benchmarking enterprise, only the static or stable information of the benchmarking enterprise, and not the dynamic or changing information of the benchmarking enterprise. This approach is likely to lead to the enterprise's understanding of the benchmarking enterprise is not meaningful, the benchmarking enterprise's strategy and action is not effective, the benchmarking enterprise's competitive advantage is not lasting.

Therefore, enterprises should follow the following principles when conducting the analysis of enterprise research:

Based on the facts and data of benchmarking enterprises, find out those analyses that can reflect the real and objective of benchmarking enterprises, rather than relying on their own feelings and guesses, and find out those analyses that can only reflect their own subjectivity and bias.

Guided by the logic and laws of benchmarking enterprises, find out those who can reflect the comprehensive and in-depth analysis of benchmarking enterprises, rather than guided by their own experience and habits, and find out those one-sided and shallow analysis that can only reflect themselves.

Focus on the trends and changes of the benchmarking enterprise, and find out those analyses that can reflect the dynamics and changes of the benchmarking enterprise, rather than those that can only reflect their own static and stable analysis based on their own current situation and stability.

How to avoid blind imitation and falling into price war

The ultimate goal of corporate research is to develop effective competitive strategies and actions to achieve their competitive advantage. However, many enterprises in the development of competitive strategy and action, often make two mistakes: blind imitation and into the price war. Blind imitation means that an enterprise does not blindly follow or copy the products or services, prices or costs, channels or promotions of benchmarking enterprises according to its own characteristics and advantages, resulting in the lack of differentiation and characteristics of its own products or services. lose their core competitiveness and market positioning. Fallen into a price war means that an enterprise does not blindly lower or raise its own price according to its own value and profit, and carries out fierce price competition with benchmark enterprises, resulting in the lack of quality and reputation of its own products or services, and damaging its own financial situation and brand image. These two kinds of mistakes will lead to the decline of the competitiveness of enterprises, the reduction of market share, the reduction of profit margin, and even the survival crisis.

Therefore, enterprises should follow the following principles when formulating competitive strategies and actions:

Based on their own characteristics and advantages, find out those competitive strategies and actions that can highlight their own differentiation and characteristics, rather than taking the characteristics and advantages of benchmarking enterprises as a reference, and find out those competitive strategies and actions that can only imitate or copy benchmarking enterprises.

Take your own value and profit as the goal, find out those competitive strategies and actions that can improve your quality and reputation, rather than taking the value and profit of the benchmarking enterprise as the challenge, and find out those competitive strategies and actions that can only lower or raise your own price.

Take one's own innovation and change as the driving force, find out those competitive strategies and actions that can enhance one's core competitiveness and market positioning, rather than taking the innovation and change of benchmarking enterprises as a threat, and find out those competitive strategies and actions that can only maintain or give up one's competitive advantage.

Shangpu Consulting Company is a professional enterprise research and competitive strategy consulting company, with many years of industry experience and professional knowledge, providing high-quality enterprise research and competitive strategy consulting services to many customers. The following are some specific cases of Champ Consulting:

Case 1: A home appliance company is facing fierce competition from domestic and foreign benchmarking companies, especially in the mid-to-high-end market. The benchmarking company has strong advantages in terms of product quality, technical level, and brand image, which leads to the company's market share and Profit margins decline. Shangpu Consulting Company conducted a comprehensive enterprise research for the enterprise, analyzed the strategic objectives, core competitiveness, innovation ability, customer demand, financial situation, organizational structure, human resources, cultural atmosphere and other aspects of the information of the benchmarking enterprise, and found out the advantages and disadvantages, threats and opportunities, trends and changes of the benchmarking enterprise. According to the characteristics and advantages of the enterprise, the company has formulated targeted competitive strategies and actions, including:

In terms of products, we should highlight the differentiation and characteristics of the enterprise, develop product series that meet the needs and preferences of different consumers, improve the functionality, personalization and intelligence of products, and increase the added value and experience of products.

In terms of price, improve the quality and reputation of the enterprise, adopt the strategy of value pricing, according to the cost, value and market conditions of different products, formulate a reasonable price range, avoid vicious price competition with benchmarking enterprises, and improve the profit margin and rate of return of products.

In terms of channels, enhance the core competitiveness and market positioning of the company, adopt a multi-channel strategy, use its own, cooperative, network and other channels to expand product coverage and influence, and increase product sales and market share.

In terms of promotion, enhance the power of innovation and change of the enterprise, adopt diversified strategies, use advertising, public relations, activities, gifts and other means to improve the popularity and reputation of products, and increase the attractiveness and loyalty of products.

Through Shangpu's corporate research and competitive strategy consulting services, the company has successfully enhanced its competitive advantage and achieved breakthroughs and growth in the mid-to-high-end market.

Case 2: A garment company is facing the challenges of many benchmarking companies, especially in the low-end market. The benchmarking company has strong advantages in product prices, promotional activities, and channel coverage, which leads to the company's market share and profit margin Decline. Shangpu Consulting Company conducted a comprehensive enterprise research for the enterprise, analyzed the strategic intention, core competitiveness, innovation ability, customer satisfaction, financial status, organizational structure, human resources, cultural atmosphere and other information of the benchmarking enterprise, and found out the advantages and disadvantages, threats and opportunities, trends and changes of the benchmarking enterprise. According to the characteristics and advantages of the enterprise, the company has formulated targeted competitive strategies and actions, including:

In terms of products, highlight the differentiation and characteristics of the company, develop product lines that meet different consumer needs and preferences, improve product design, fashion and comfort, and increase product added value and experience.

In terms of price, improve the quality and reputation of the enterprise, adopt the strategy of cost-plus, according to the cost, value and market conditions of different products, formulate a reasonable price range, avoid vicious price competition with benchmarking enterprises, and improve the profit margin and rate of return of products.

In terms of channels, enhance the core competitiveness and market positioning of the enterprise, adopt professional strategies, use their own, cooperative, network and other channels to expand product coverage and influence, and increase product sales and market share.

In terms of promotion, enhance the enterprise's innovation and change momentum, the use of personalized strategies, the use of advertising, public relations, events, gifts and other means to improve product visibility and reputation, increase product attractiveness and loyalty.

Through Shangpu's corporate research and competitive strategy consulting services, the company has successfully enhanced its competitive advantage and achieved breakthrough and growth in the low-end market.