Why is researching about other companies important for the company doing the research?

Question

Why is researching about other companies important for the company doing the research?

Answer 1

Best Answer - Chosen by Voters

It's helps when trying to find out about competitors. Imagine you work for a cafe in a small town. You'd want to know how much to charge for the All Day Breakfast. Well a good thing to do is find out what all the other cafes in the town charge for their all day breakfast. If they all charge £5 then it'd be silly of you to charge £8 because everyone will go to the other cafes. If they all charge £5 then it'd also be silly of you to charge £2 because everyone would come to your cafe, but you wouldn't have enough seats, so you would be full, but you could have made more money by charging £4.60.

Another thing to think about would be how nice their food is compared to yours, so if their breakfast wasn't very nice and only contained a nasty sausage, a fried egg, and some beans, you could offer a better breakfast for the same price - two sausages from local farms, bacon, beans, toast, mushroom, egg, free coffee. And once you have more customers because they like yours better, then you could put the price up a little. The other cafes would be watching your prices too, so they'd keep adjusting. Such is the nature of competition. And how do the companies all find this information? Research. And research can be as simple as using the competitor's products. (and in fact is exactly what happens)

Answer 2

it will give ample data to understand current demand for the product in the market and at the same time, will help to analyse the competition and to devicwe strategic policies for achieving organisational goals and objectives. refere PESTLE, SWOT, PEST analysis fo rthis purpose or try this qustion in some websites like fastcustomessays.com and request for a gud writer, which i used for my management dissertation in the same topic. HOpe this will work for you too. Merry X'mas