Definition of Competitive Analysis
By definition we can tell Competitive Analysis strategy is to check the competition in a similar business so as to analyze the weakness and strengths of the potential rivals with respect to the sole company. This information finally is useful for the betterment of the features and efforts to improve the company. We extract certain information and then implement the new idea to move a step ahead in the market. The information gathered should be very comprehensive and it should cover all the important aspects of the market.
Competitive Analysis is can be a game-changer as it plays a critical role in marketing. It makes an attractive tool to target the audience showing what is unique about the company among such a huge market.
Answer these first
Before starting the procedure, it is important to understand a few questions and how to tackle these questions.
- Who all are the competitors?
- The products or services do they provide.
- Their market shares.
- Their past mistakes.
- Competitors’ current strategies.
- Media types they use to market their services.
- What time limit do they offer to deliver their services?
- Things they excel in and what weaknesses do they possess.
- The special threats the competitor pose which is not part of included in your business.
- What opportunities can you take out?
Hands-on Competitive Analysis
Take a paper and write down the following as per the hierarchy, on the bottom right side of the paper, write the products name that you produce or provide, that is in competition with others. For this one can write the thing that the customer will buy from others if they are not buying from you. On the top write the main features of the product or services. Here you can write Prize, size, marketing strategy and target market. Write the left side of the paper with a list of buyers and services, website, phone numbers and other features. These all finally make a grid to tell where you belong in the entire market.
There are still things that should be avoided which most of the businessmen don’t think about and end up losing the competition.
Not considering all the companies:
First thing first, never underestimate any competition, big or small, everyone in the related field is a competition. It can be due to insufficient knowledge, experience and lack of time too. It can make blockages in making a dynamic analysis and structural changes in businesses.
Not thorough with the word competitive analysis:
If the entrepreneur is worrying about just one or two products they produce for the competition, then they are worried about just one perspective part of the market. For building an awakening business, we analyse the market in a broader range to build a visionary concept. It lets them know the competition better with cost and technologies that can also be used in their business improvement.
Unaware of the customers’ requirement:
It is important to know what the customer needs and it can be done through competition analysis. The important thing to know is how customer and users think about the company. It helps to better the company by understanding the factors, strategies and decisions. It sometimes makes overestimating the customer and investing too much in the product than required.
Not considering a substitute offer:
Often companies consider substitutes as competition, although they are not. Moreover, an analysis of company providing a demand with various development strategies is also possible, it is how one perceives it. It is about being specific about just self-producing strategy or considering various technologies to build product fast.
All of the companies who believe in competitive analysis strategy are benefiting with the concept. Competition is good for progress in any business and people will continue to rely on old boring things forever. Competition analysis can be considered single-handed working or allocate to an experienced company who is in the business.