Whether you are a marketing professional or someone venturing into the world of business, you might have come across the term ‘Competitor Analysis.’
Competitive analysis is a method for determining where your company stands concerning its competitors in the industry. It’s a technique for acquiring market insights and applying them to good use.
Making B2B competitor analysis a part of your business strategy can outshine your competitors and build a loyal customer base. Nailing competitor analysis can give you that much-needed head-start in the cut-throat corporate competition.
While thorough planning, in-depth market research, and introspection are all necessary components of successful competitor analysis, it takes a lot more than that.
You must be wondering how to do competitor analysis the right way and what all steps there are.
You will get the answers to these questions in this blog.
1: Identify and make a list of your competitors
At first, identifying a competitor may appear to be an easy task. All you gotta do is run a quick online search and look for businesses offering similar services or products as yours. However, there is more to it than it appears. You must first understand the types of competitors.
In general, there are two types of competitors – direct and indirect.
Direct competitors are those who sell similar products or offer identical services to your business.
Indirect competitors are those who cater to the same demographics or customer needs.
Research is the first step in identifying your competitors.
In a Google search, use terms that define your business. Make a comprehensive search using every phrase and combination of words you can think of.
Determine the top search results for companies that provide your product or service. Then, examine how your products stack up against theirs and what distinctions stick out.
2: Conduct a Comprehensive SWOT analysis
Examine your biggest competitors’ skills and the condition of their firms once you’ve identified them. SWOT analysis is a long-standing method that looks at four areas to assess a company’s longevity: strengths, weaknesses, opportunities, and threats.
Strength and weaknesses
Real assets and physical elements that impact a firm are referred to as strengths and weaknesses.
Make a list of your competitor’s resources and potential risks, such as:
- Investments, revenue, and funding
- Revenues and profits
- Resources and infrastructure
- Copyrights, intellectual properties, and patents
Opportunities and Threats
External elements that might positively or negatively affect a firm are referred to as opportunities and threats.
- Innovations and new products launching in the market
- A change in consumer requirements
- Current economic conditions
- Government regulations
- A shift in vendor and supplier relationships
SWOT analysis, if done correctly, can help you get a complete picture of your competitor’s market standing and even help you unearth their weak points.
After conducting a SWOT analysis on your competitor, analyze your own business for comparison.
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3: Product Profiling
Now that you better understand your competitors’ strengths and shortcomings, you can evaluate their offerings. How are their products or services superior to yours? What makes them worse? What solution do they offer to add customer value if you deal in identical items?
Product profile is a crucial phase in the entire process. You may find market gaps by knowing what your opponents offer. With this insight, you will be better positioned to understand where your products lack and devise a strategy to fill the gaps.
Competitor analysis is not a do-it-just-once thing. Instead, it is an ongoing process that should be a part of business strategy. Businesses should know how to do competitor analysis to stay one step ahead of their rivals and avoid pitfalls along the way.