- Identifying your business competitor strengths, weaknesses and marketing research to better improve your business market and sales strategy.
- Business competitive analysis is the process of identifying, categorizing, and evaluating your competition as well as your brand.
- Dissecting the overall approach of your competitors can give you a cutting edge and advantages.
What’s the best way to be a step ahead of your major competitors? There are various ways and one of them is doing a business competitive analysis. Only by an in-depth understanding of how they strategize and conduct business and comparing them on your own methods. It helps you develop a more solid, competitive business plan. It goes by saying, the better you understand your competitors, the more powerful you become to scale up your business in notches.
What exactly is a business competitive analysis?
Business competitive analysis is the process of identifying, categorizing, and evaluating your competition as well as your brand. It is crucial to the success of your business and helps you adapt the best practices and campaigns. It requires a deep dive into the competitive landscape.
The process may sound simple, but putting it into action is a bit complicated. A competitive analysis covers a range of metrics, disciplines, and areas. It is different from simple SWOT or Strengths, Weaknesses, Opportunities, and Threats analysis.
It technically covers these basic key points:
- product summaries
- strengths and weaknesses
- business strategies and marketing techniques
- market outlook
The process requires an efficient and competitive analysis template that helps you evaluate the competition and beat them effortlessly. A good competitive analysis template can help you quickly identify market trends, marketing strategies, and customer support to establish or enhance your brand’s image. By understanding the market opportunities and challenges, you can create data-backed solutions that will highlight the unique value of your brand.
If you are looking for a reliable template that works like SWOT, Xtensio’s TOWS matrix analysis is an excellent option. It is a powerful and dependable tool that will help you identify core opportunities to grow your business exponentially. You can use it to create a strategic roadmap and identify various strategies for your team or use it to analyze the competitors’ business operations.
What will you gain from a business competitive analysis?
As mentioned before, dissecting the overall approach of your competitors can give you a cutting edge and advantages.
- Tells you how your products or services perform and their unique value proposition over the others.
- Helps you identify what the competitors are doing right and adapt them in a subtle way or make a similar strategy to sustain the interest of consumers.
- Enables you to find the weak spots or where they are falling short, so you can fill the gap in the marketplace by offering new strategies, opportunities, or products.
- Gives you a benchmark to measure your business growth.
- Study the customers’ reviews to identify the missing factors in their products and consider adding new features to your own to address the needs.
- Allows you to develop original products and services.
- Market and sell your brands more effectively.
- Discover market trends
How to conduct a business competitive analysis?
Do you conduct regular analysis to gauge your brand’s competitiveness? When was the last time? Did it help you improve the performance of your product in the marketplace? If not, perhaps what you did was not a thorough business competitive analysis, but a quick perusal of their websites.
Competitive research is about closely monitoring your competition and analyzing the behavior and pattern of business moves. This way, you can anticipate their future actions and be one step ahead of them.
Step 1: Conduct your research.
- Document the information by gathering the basics such as the name of the business, mission statement, location, product, category of competition, and strengths/weaknesses of their brands.
- Dig up comprehensive information by following their digital footprints in mainstream and social media, support threads, reviews, online communities, niche organizations, and news.
- Categorize your competitors into primary, secondary, and tertiary competition.
- Keep everything you gathered in a database or spreadsheets.
Step 2: Collect information.
- Determine their product line and their quality, pricing structures, seasonal campaigns, discounts, sales strategies, shipping costs, hours of operation, number of employees, resources, and customer service.
- Find out if they are scaling down or expanding and earning huge profits.
- Know their positive attributes that attract loyal customers and their competitive advantages.
- Discover their market share percentage, revenues, total sales volume, and growth rate.
Step 3: Analyze the gathered competitive information
- Determine your rivals’ competitive status by analyzing the information you collected, identifying their strong points and weaknesses.
- Identify the value of their products or services by reviewing their prices and the unique elements that make them more popular with customers.
Step 4: Determine your competitive position
- Capitalize on what you learned from your business competitive analysis to position your brand in the marketplace.
- Identify the key areas that give you competitive advantages and prevent disadvantages.
- Summarize all the major challenges and opportunities, especially the pressing problems that need to be addressed.
- Integrate the results of your analysis with the current demographic market analysis to implement better marketing strategies that strengthen your position.
Make it a part of your business inventory to do a regular competitive analysis. Using a competitive analysis template makes the tasks easier and organized.