What exactly is a competitive analysis?
A competitive analysis evaluates your competitors’ products, services, and sales strategies, assessing their strengths and weaknesses in comparison to your own. A complete competition analysis should be performed at least once a year as a good business practice.
“You should always be aware of what your competitors are doing and where you stand,” it advises. “It’s something to incorporate into your organizational discipline, similar to keeping good books.”
What does a competitive analysis serve?
A competition study can enable you to identify your own distinct advantages as well as any potential hurdles to growth, allowing you to improve your marketing and commercial strategy. It also keeps your company proactive rather than reactive.
Many entrepreneurs make decisions based on preconceived notions about their competition and the market landscape, which may or may not be correct or up to date.
In 5 steps, learn how to conduct a competitive analysis.
A competitive analysis consists of four major steps:
1. Determine your competitors’
This appears basic, but there are several types of rivals to consider. They are as follows:
Direct rivals are firms that provide identical products and services to the same customers in the geographic area that your company serves.
Secondary/indirect competitors: These are firms that provide different products and services to the different customers but fall into the same general category as you (e.g., a winery and a brewery are secondary competitors because they both sell alcohol).
Substitute competitors are companies that provide different products and services but target the same people in your location.
It is not always evident who your competitors are. In such circumstances, we suggest employing the North American Industry Classification System (NAICS).
This helps to establish a picture of how your company compares to others in your industry.
2. Compile information about your competitors.
Once you’ve discovered your competitors, assess them using the marketing mix’s “four Ps”:
Product: Contrast their products with your own, preferably by acquiring and testing them yourself. What is the standard? What characteristics do you like or dislike?
Pricing: What are the prices for their products and services? Do their rates differ between channel partners and customers? What is their policy on discounts? Can you provide an approximation of their cost structure?
Place: In comparison to your company, what is their geographic reach or service area?
Promotion: How do they communicate and engage with their customers through marketing? What is their social media presence?
The “four Ps” concept has grown since its inception; therefore, consider other elements as well, such as:
Examine their websites, social media, product manuals, brochures, and catalogues for positioning. Who are their intended customers? What is their distinct selling point?
What are people saying about your competitors’ products and services on the internet and on social media? How do the ratings compare to those for your company?
People: How big is their company? What is the general demographic of the employees?
Who are their suppliers in collaborations? How long have they been collaborating?
If you’ve never done this before, we recommend devoting a couple of weeks to collecting data and doing research with your sales, marketing, and customer service teams. Then, meet with your team for a focused two-hour session to go through what you’ve discovered and map out the findings.
In addition to the comprehensive annual review, it’s a good idea to set aside some time every couple of months to undertake a brief refresh of the data to ensure you’re constantly proactive rather than reactive.
3. Examine the strengths and weaknesses of your competition.
It is critical that during the two-hour session with your team,
It is critical that you can quickly compare your competitors’ performance to your own.
4. Identify your competitive edge.
Now that you have all of the data, it’s time to figure out what the results indicate for your business strategy.
“Ask yourself, what are we good at in comparison to our competitors, and where do we wish to focus?” “It’s a ‘who do you want to be when you grow up?’ type of inquiry.”
Analyzing the competitive landscape will assist you in determining your competitive edge. It could be a distinguishing feature that attracts your target market and around which you can develop your brand image and marketing. Alternatively, if you notice a weakness in the competition, you could cut your rates and introduce new promotions to capitalise on the opportunity.
While it is necessary to monitor the competition and enhance your business in response, you should not let concerns about what others are doing totally dictate or control your approach.
You can clearly see the trade tendencies using the Import Data India, and Jodhpur Import Data. You can get the best market knowledge and trends from it. You’ll be able to draw in potential customers and clients who work in your industry. Contact our Export Import Data Experts right away to accelerate your growth like never before.
Export Import Data India 