Every industry is undergoing large-scale disruptions with technological advancements and everchanging buyer behavior. The need for high-quality products and services has obliged businesses to refine their strategies and processes. Competitor analysis helps you evaluate and enhance your strategies while identifying new markets and business growth opportunities.
What is Business Competitor Analysis
Competitive analysis, simply put, is a close assessment of the strengths and weaknesses of your competitors. Through competition analysis, you gain insights into your competitor’s products and services along with sales & marketing strategies. You learn the details about their business processes. These insights help you identify potential opportunities where your business can out-perform them and improve your outcomes.
Moreover, competitor analysis enables you to stay abreast with the latest industry trends and ensure your products and services are consistently exceeding customer expectations.
Reasons for Competitor Analysis
1. Competitors evolve their strategies
Businesses constantly change their strategies and adapt new sales & marketing tactics. They restructure their business processes and might reallocate new resources and offerings to their products and services. It is critical to understand where your competition is headed and use those insights to reshape your business strategies.
2. Market demands change consistently
The business landscape has undergone major disruptions in the recent past. Be it the pandemic or changing customer demands, various factors have influenced the way businesses operate today. Understanding the customer expectations with market intelligence will enable you to design strategies to deliver what your competitor is failing to offer.
3. New trends and disruptions
Several trends and disruptions have had a significant impact across industries and geographies. To emerge stronger through these disruptions, the key lies in adapting to the new trends quickly. Competitor profiling and analysis helps you understand the areas where you need to evolve and embrace a new approach to replace the traditional methods.
4. New technological enhancements
Technology is moving at a faster pace than ever before. New technological advancements are accelerating business processes and enabling automation to expedite repetitive tasks. You should understand which technology applications your competitors are leveraging to make their business processes effective and efficient.
How to do Competitor Analysis
1. Identify your competitors
The first and most important thing you need to identify your competition. It is necessary to understand who you are really competing with to compare data accurately. Having a competitor list offering the same products and services as yours will help you understand the business strategies and target customer needs better.
2. List out what you want to compare
After curating a list of direct competitors, you must zero in on what you want to compare and analyze. To optimize your competitor research outcomes, you need to identify the key metrics that you can measure and analyze.
3. Research your competitors’ sales and marketing tactics
Understanding your competitor’s sales process and marketing communication will help you realize where you can improve in your marketing efforts. These insights will help your marketing team improve campaigns and sales representatives prepare better for the final buying stage.
4. Analyze your competitors’ pricing
More often than not, pricing of the product or service is one of the major factors that influences customers’ buying decision. You should stick to the industry standards or be able to justify the premium pricing of your products and services with superior and better-quality offerings.
5. Note the technology stack your competitors use
Technology, if used strategically, can really help you accelerate your business processes and optimize your sales and marketing efforts. Understanding what kind of technology your competitors’ leverage can help you increase business efficiency by adapting new technologies.
6. Perform SWOT analysis
During competitor research, it is helpful to carry out a SWOT analysis of the competition along with their business, sales and marketing strategies. You will gather a clear picture of what your competition is doing better than you and also compare their weaknesses against your strengths.
Business Benefits of Competitor Analysis
1. Identify your value proposition
Competitor research helps you identify your unique value proposition. This can prove fruitful in directing your marketing and sales efforts to communicate what makes your products and services different and better than your competition.
2. Offer better customer value
Once you realize what the market and customer demand and expectations are from your products and services, you can invariably work to improve your offers and deliver better customer engagement and value.
3. Detect areas of growth and opportunities
Competitor analysis helps you understand where your competition is falling short. This will help you identify the areas of opportunities in the marketplace. You can leverage new marketing strategies to expand your business reach and outcomes.
4. Set a growth benchmark
With effective business competitor analysis, you can set a benchmark against which you can measure your business growth. This will help you quantify your marketing efforts and improve and improvise wherever required. Having a clear strategy will enable you to reach your business goals sooner.
Business Benefits of Competitor Analysis
Taking decisive actions based on data-driven and intelligent insights will always prove beneficial for businesses. Whether it is for launching a new product or entering a new market, you need market and competitor analysis to optimize your marketing performance and elevate your market presence.
Outsourcing competitor analysis to a business research and analysis service provider will help you optimize your resources and focus on operational tasks and business critical processes. Competitor analysis solutions will enable strategic decision making and help you discover the full potential of your business.
Every industry is undergoing large-scale disruptions with technological advancements and everchanging buyer behavior. The need for high-quality products and services has obliged businesses to refine their strategies and processes. Competitor analysis helps you evaluate and enhance your strategies while identifying new markets and business growth opportunities.
What is Business Competitor Analysis
Competitive analysis, simply put, is a close assessment of the strengths and weaknesses of your competitors. Through competition analysis, you gain insights into your competitor’s products and services along with sales & marketing strategies. You learn the details about their business processes. These insights help you identify potential opportunities where your business can out-perform them and improve your outcomes.
Moreover, competitor analysis enables you to stay abreast with the latest industry trends and ensure your products and services are consistently exceeding customer expectations.
Reasons for Competitor Analysis
Competitors evolve their strategies
Businesses constantly change their strategies and adapt new sales & marketing tactics. They restructure their business processes and might reallocate new resources and offerings to their products and services. It is critical to understand where your competition is headed and use those insights to reshape your business strategies.
Market demands change consistently
The business landscape has undergone major disruptions in the recent past. Be it the pandemic or changing customer demands, various factors have influenced the way businesses operate today. Understanding the customer expectations with market intelligence will enable you to design strategies to deliver what your competitor is failing to offer.
New trends and disruptions
Several trends and disruptions have had a significant impact across industries and geographies. To emerge stronger through these disruptions, the key lies in adapting to the new trends quickly. Competitor profiling and analysis helps you understand the areas where you need to evolve and embrace a new approach to replace the traditional methods.
New technological enhancements
Technology is moving at a faster pace than ever before. New technological advancements are accelerating business processes and enabling automation to expedite repetitive tasks. You should understand which technology applications your competitors are leveraging to make their business processes effective and efficient.
How to do Competitor Analysis
Identify your competitors
The first and most important thing you need to identify your competition. It is necessary to understand who you are really competing with to compare data accurately. Having a competitor list offering the same products and services as yours will help you understand the business strategies and target customer needs better.
List out what you want to compare
After curating a list of direct competitors, you must zero in on what you want to compare and analyze. To optimize your competitor research outcomes, you need to identify the key metrics that you can measure and analyze.
Research your competitors’ sales and marketing tactics
Understanding your competitor’s sales process and marketing communication will help you realize where you can improve in your marketing efforts. These insights will help your marketing team improve campaigns and sales representatives prepare better for the final buying stage.
Analyze your competitors’ pricing
More often than not, pricing of the product or service is one of the major factors that influences customers’ buying decision. You should stick to the industry standards or be able to justify the premium pricing of your products and services with superior and better-quality offerings.
Note the technology stack your competitors use
Technology, if used strategically, can really help you accelerate your business processes and optimize your sales and marketing efforts. Understanding what kind of technology your competitors’ leverage can help you increase business efficiency by adapting new technologies.
Perform SWOT analysis
During competitor research, it is helpful to carry out a SWOT analysis of the competition along with their business, sales and marketing strategies. You will gather a clear picture of what your competition is doing better than you and also compare their weaknesses against your strengths.
Business Benefits of Competitor Analysis
Identify your value proposition
Competitor research helps you identify your unique value proposition. This can prove fruitful in directing your marketing and sales efforts to communicate what makes your products and services different and better than your competition.
Offer better customer value
Once you realize what the market and customer demand and expectations are from your products and services, you can invariably work to improve your offers and deliver better customer engagement and value.
Detect areas of growth and opportunities
Competitor analysis helps you understand where your competition is falling short. This will help you identify the areas of opportunities in the marketplace. You can leverage new marketing strategies to expand your business reach and outcomes.
Set a growth benchmark
With effective business competitor analysis, you can set a benchmark against which you can measure your business growth. This will help you quantify your marketing efforts and improve and improvise wherever required. Having a clear strategy will enable you to reach your business goals sooner.
Final Word
Taking decisive actions based on data-driven and intelligent insights will always prove beneficial for businesses. Whether it is for launching a new product or entering a new market, you need market and competitor analysis to optimize your marketing performance and elevate your market presence.
Outsourcing competitor analysis to a business research and analysis service provider will help you optimize your resources and focus on operational tasks and business critical processes. Competitor analysis solutions will enable strategic decision making and help you discover the full potential of your business.
