A competitive analysis is a marketing strategy that helps define the competition between two or more companies. This process is used to improve a companyâ€™s competitiveness by understanding the strengths and weaknesses of its competitors. The goal of a competitive analysis is to increase the companyâ€™s performance in the market by improving its product, design, advertising, and others.
How should a competitive analysis be conducted?
The best way to conduct a competitive analysis is by performing market and competitor research. This includes gathering all the pertinent information about your competitors, analyzing the strengths and weaknesses of their current marketing strategies, and understanding where you need to improve your marketing strategy.
In this post, we’ll provide eight steps for conducting a competitive analysis that will help you understand how to analyze your competition.
What are the benefits of conducting a competitive analysis?
A competitive analysis can help your business identify how it stands in the market and where it is lagging.
It helps you understand what your competition is doing to maintain their market share and gives you an idea of how you can improve your business.
By conducting a competitive analysis, you can find out where you stand in the marketplace. You’ll also be able to see if there are any areas of opportunity for your business. This will help you figure out where to concentrate your resources, which is vital for the growth of any company.
Researching the market before expanding into new areas will also help you avoid competitors or become aware of their presence in advance so that you have time to prepare and strategize before they enter your industry.
The benefits of conducting a competitive analysis include:
– Understanding what your competition is doing so that you can better compete with them
– Identifying opportunities for improving your business
– Planning ahead so that you’re not blindsided by competition
Why is the analysis important to the business?
The competitive analysis is important because it helps the business understand its position within the marketplace. The competitive analysis can also help identify weaknesses and opportunities, which the company can then use to improve its marketing strategies and tactics.
By conducting a competitive analysis, your company will be able to identify how well it’s doing against its competition. Also, by conducting a competitive analysis, you’ll be able to decide what you need to do in order to stay afloat in the market and remain relevant.
So why is performing a competitive analysis important? Here are some major benefits of performing a competitive analysis:
– It helps identify your strengths and weaknesses in the market
– It helps define your target customers/audience
– It helps determine what products or services your competitors offer that you may not have considered
Last Updated on January 15, 2022
Aires Loutsaris is a content marketing specialist working with some of the world’s biggest VC funded startups and eCommerce companies. He has 15 years of experience in organic search optimisation and content writing with over 2500 students enrolled in his Udemy SEO course. An ex-head of two award-winning agencies, he has lectured at the University of the Arts, London College of Fashion on content marketing and has consulted for all three of the Universities he studied at: The Open University, The University of Hull and Kings College University of London. Feel free to connect with Aires on LinkedIn or Facebook.