7, Jul 2023
Competitive Analysis

Competitive Analysis

The more you know about your competition, the better equipped you are to create a marketing strategy that will put you ahead of them. A competitive analysis is the process of assessing the strengths and weaknesses of your competitors and evaluating how well their products or services match up with your own.

A key component of both the marketing and strategic management fields, competitive analysis is an offensive or defensive framework that evaluates your current market and potential future markets to identify opportunities and threats. By analyzing the performance of your competitors, you can determine how effective your own product or service is, how you can improve it to stay ahead and what new strategies you can implement to grow into a larger market share.

There are a variety of ways to perform competitive analysis, and the best way to do it will depend on your industry, what kind of data you want to collect and how deep you want to go. For example, a competitor analysis can be as simple as a SWOT (strengths, weaknesses, opportunities and threats) analysis or a more in-depth approach like Porter’s Five Forces model.

While it may seem tempting to skip out on competitor analysis, skipping this step can be disastrous for your business. Without it, you may overlook a major opportunity to take the lead in your industry or you could find yourself facing strong headwinds that will be difficult to overcome.

Moreover, many entrepreneurs operate with preconceived ideas about their competitors and the market landscape, but these ideas may be outdated or inaccurate. By identifying your true competitors, you can be sure that your company is on the right track and that its growth strategies are based on solid ground.

A competitive analysis is also useful in determining what your potential customers want and how to market to them. For example, if your client is an up-and-coming frozen treat brand, it’s important to understand what other brands are competing in the same market and how you can differentiate your product from them. By identifying the needs of your target customer, you can create marketing campaigns that will resonate with them.

As you conduct a competitive analysis, don’t forget to look beyond your direct competitors. Indirect competitors can be just as valuable as your direct ones, as they offer a similar solution to your target customer base. For instance, if you are developing an app for mobile phones, it’s important to consider how the features and functionality of your indirect competitors’ apps can be incorporated into your own app.

It is recommended to do a competitor analysis regularly, especially when you’re launching a new product or service. As your strategy succeeds, the landscape around you will rise to meet you, so it’s crucial to keep up with your competition to avoid getting left behind. For this reason, it is a good idea to make competitor analysis a regular part of your agency’s workflow.

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