Comparisons help contrast two things, bringing out differences and showing how each is special. Why does this matter for businesses? Without bringing out the differences between you and your competition, your understanding of the difference will be mushy. And it’s hard to explain to others an idea that is mushy in your own mind. The mushiness comes from two places: your inability to call things what they are, and your lack of information. In other words, you will struggle to differentiate your brand from your competition. This process helps you deal with both: we focus only on the information you can know, and we analyze it in a way that forces us to make decisions and distinctions.

Here's how we'll do it.

Step 1: Write a SWOT Analysis First, organize what you know. Don’t let lack of information stop you: You don’t have inside info, so look at the outside:

What does your competition say? How do they present themselves? Describe their messaging, creative, and positioning efforts. What actions are they taking? How do people feel about them? What do their customers say about them publicly?

Workflow: After collecting this information, turn to your own business. Write down the following:

Detail your operational strengths as an organization. How are you able to serve your customers well? What are your weaknesses? What about your company gets in the way of serving your customers? Describe your opportunities. Are there obvious opportunities out there in the market? What makes them such a good fit, given your strengths and weaknesses? What are the threats to your success?

Market factors, like the economy. Indirect competition, like replacements for what you do. Direct competitors, who do the exact same thing you do. This is what we’ll focus on in the next step.

For a more complete treatment of the SWOT, check out this article. Step 2: Review threats and your strengths Compare Yourself to Them Here’s where you really draw distinctions. Write down why you think this other company is a threat. What is it good at that makes it competitive to you? How do you compare favorably? How do they nullify your strengths by being better in that area? This last one is huge because it requires honesty. You have to admit that this other company is better than you at something you think you’re good at. Worry about how you’ll overcome them some other day. Today is a day for honesty.

A good example: Let’s say you listed customer service as a strength, but another company has a better reputation for customer service. Be honest and realize that you can’t compete on that alone. Test Your List (Eliminate and Develop) Now, come up with all the strengths you have remaining, after you’ve eliminated some. Is there something you listed, like the ability to deliver reliably, that your competition has trouble with? Maybe that’s your big difference.

Also, before we leave customer service off the table, let’s also think about what we mean by customer service. Your competition may have great scores in an area like that. But if you can deliver unique value, you might be able to cut them off.

For instance, let’s say they lean on great customer service scores in surveys and they plaster it all over in their advertising. But even with that, you know they have wait times. And you don’t. This could be an easy way to differentiate your brand. So if customer service is so valuable to your market, you could advertise zero hold times, offering a more-specific and believable promise.

Be careful though. If they own customer service, it can be tricky to win it from them. Make sure it’s worth the investment. Step 3: How do your comparative strengths differentiate your brand? Let’s review: Comparative advantage is the measure in B2B, not absolute advantage. There’s a difference.

Absolute advantage is where you’re better than everyone else (in your market).