How to Perform Competitor Analysis Like a Pro
Every business dreams of outperforming its competitors to emerge as the leading brand in their respective niche. However, it is necessary to adopt an intelligent approach to reach the top. Just ensuring smooth business operations and providing excellent customer service does not suffice –you must keep an eye on your competitors’ way of doing business to stay ahead of the game by learning from their mistakes.
Companies use various innovative strategies and tools like competitor analysis to keep a check on their competitors. Also known as competitive analysis, this venture unleashes how well your business is performing as compared to your business rivals.
Get a constructive competitive analysis template to learn how well or worse your company performs in the consumer market. It can enlighten you about what brands you are competing with so that you can take your services up a notch to stay ahead of the game.
Continue reading to explore competitor analysis and how you can conduct it effectively to open new avenues of growth for your business.
What Is Competitor Analysis?
Competitor analysis is a method to assess how well your company is performing by evaluating where it stands in the commercial arena. This is done by studying your competitors’ marketing and management strategies to assess their strengths and weaknesses. It allows you to fill the market gap and stand out in your respective industry.
Ideally, businesses should conduct competitor analysis once a year to remove potential barriers that hinder a business’s growth. Statistics show that 65.5% of startups fail in the first ten years of business. It is mainly because they are unaware of their competitor’s tactics and position in the market. As a result, they continue to invest their efforts and resources in the wrong direction.
Why Is Competitor Analysis Important For Your Business?
Competitor analysis is a crucial tool to up your business game. It unleashes valuable information that can help ventures improve their overall business operations. It has been estimated that 94% of businesses plan to invest in competitive intelligence to reap its extensive gains.
Let’s explore the benefits of incorporating competitor analysis in your business;
1. Assesses The Performance Of Your Company
Competitor analysis enlightens you about the performance of your company in comparison to the prosperous businesses in your niche. You get to know where you stand in the consumer market. If your position is good, it will motivate you and your employees to keep up the spirit. However, if your services are not up-to-the-mark, it will give you a chance to develop a constructive marketing strategy to bring your business back on track.
2. Identifies Your Potential Competitors
Have you ever heard the saying, ‘Keep your friends close and enemies closer?’ –This holds truest in the corporate world than anywhere else.
It is paramount to know who your competitors are and what they offer to make your business stand out. Competitor analysis identifies your competitors and their business strategies. Knowing this will give you a competitive edge over them to make your products, services, and marketing strategies stand out.
3. Unleashes Market Trends
Conducting regular competitor analyses keeps you up to date on the latest market trends and news. This enables you to manage your business according to the current market situation. Moreover, new market trends offer various opportunities for business flourishment. Therefore, it is best to keep yourself posted about the latest commercial market news and trends, so you do not miss anything.
4. Highlights Areas Of Improvement
Competitor analyses highlight your weaknesses, enabling you to direct your time, effort, and resources in the right direction. A primary reason for businesses’ downfall is working aimlessly and investing efforts and resources in the wrong strategies and plans.
5. Enlightens You Of Possible Threats
A tremendous benefit of regular competitor analysis is foreknowledge of potential threats that may harm your business. This gives you the leverage to prepare before time to prevent huge losses and detriments.
How To Perform Excellent Competitor Analysis?
Is your business failing despite performing a regular competitive analysis? If yes, it may be because of poorly conducted competitive research. Here are some tips for running a practical analysis:
1. Pick Your Top Competitors
The first step to starting a competitor analysis is by identifying and picking your potential competitors. All you need to do is find brands offering the same products and services as you. Finding companies working within the same niche as you would be best.
2. Collect All Information About Them
After identifying your customers, it is time to gather information about every competitor separately. Start by visiting their website to see their products and services. You should note their prices and marketing strategies to understand their business operations.
Moreover, it would be beneficial to visit their social media pages, accounts, and ads to get an idea of their marketing techniques. Additionally, go through their customer reviews and rating to assess what their employees think about them.
3. Assess And Analyze Their Weak and Strong Points
After gathering essential data on your competitors, it is time to analyze and come to conclusions. You should strategically analyze your competitor’s strong and weak points.
By assessing their strong points, you can develop unique and more effective business strategies enabling you to outperform the competitors and emerge as a leading brand in your industry. On the other hand, assessing their weak points will give you the leverage to fill in market gaps, helping you stand out from your competitors in the consumer market.
4. Evaluate Your Competitive Edge Against Them
The Schumpeterian argument confirms that companies tend to get more creative with their marketing operations when they find a competitive edge against their competitors. Therefore, an essential ingredient for performing good competitor analysis is to assess your competitive edge against your business rivals.
Implement the business strategy that gives you an edge over your competitor. This will aid you in becoming the top-tier brand in the commercial world as you outstrip your competition.
In A Nutshell
Competitor analysis is an essential tool for your business as it highlights strategic information about your rivals, which can benefit you in the long run. However, to emerge as the leading business in your niche, you must conduct proper competitor analysis by covering all the necessary aspects.
