A strategic approach of research, collection, and analysis of data on open new business and understand its strength and weakness. This gives market positioning of product, its pricing, its marketing, and sales strategies. This is known as competitive analysis.Its primary goal is to target opportunities and eliminate threats in the market. It allows a business to mark its own competitive advantage achieving strategic decisions, and find market gaps to exploit the opportunities.
What to do?
Identify Competitors:Check both direct (similar products/services, same audience in the market) and indirect (different products, same customer need effecting) competitors.
Research Strategies:Collect information on competitors’ business-critical aspects, including their products, pricing, distribution, marketing, and sales techniques.Evaluate Strengths & Weaknesses:Analysis of what competitors do well and where they change compared to the own business.
Market Positioning:
Calculate position and how the own brand can differentiate, reach and attract the target audience.
How to conduct one
Define Scope:The direct and indirect competitors and their specific concerns of business with analyze.
Gather Information:
Study competitor websites, social media, and use marketing tools to understand their online presence and performance.
Analyze Key Aspects:
Evaluate their:Products/Services: The offers, the features, and the uniqueness in value proposition of competitors.
Pricing: The pricing strategies and any perks provide by competitors.Marketing & Sales: Analyze their marketing campaigns, channels, and sales process to compete.Customer Base: The targets and how to engage with customers.
Perform a SWOT Analysis:
Compare your business’s strengths, weaknesses, opportunities, and threats against the competitors.
Identify Opportunities & Threats:
Find market gaps and opportunities and find where the competitors are overlooking your customer segment or leaving key features.
Why it’s important
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Gain Competitive Advantage:A sampling and study of competitors’ successes and failures would improve strategies and stay ahead for success.
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Informed Decision-Making:Fast and correct strategic choices for growth, with a clear scenario of the market landscape.
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Find Market Gaps:Customers not reached or unexplored market segments would create new opportunities.
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Refine Your Brand:Position your brand and better offers with the best appeal to the target audience.
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