Even if you start a new business or are running an existing one, one thing you’ll definitely have is – competitors. And if you want to stand out among them to get more customers, you must conduct a competitor analysis. You will get to know what your competitors are doing to run their businesses successfully.
This information helps you decide your strategy and give your business a new direction. There are several aspects you need to consider while conducting a competitor analysis.
This article will help you understand how to conduct a competitor analysis and what aspects to consider while doing the analysis.
Concept of Competitive Analysis
Let’s begin with understanding what a competitive analysis exactly is. It is a strategic tactic used for identifying and evaluating competitors. The essential purpose of conducting a competitor analysis is to identify the competitor’s strengths and weaknesses relevant to your product.
Businesses usually conduct a competitive analysis for –
- Studying the market scenery
- Predicting market demand and supply
- Reformulating their business strategy
- Forecasting market trends and patterns
- Recognizing opportunities
- Acknowledging threats
- Calculating the competitor’s next move
- Redefining the company objectives
Knowing your competitors, learning what they are doing, and how they are doing it, is important for you to take necessary measures to improve your company’s performance and differentiate yourself from rival companies.
Conducting a Competitive Analysis
Moving further, let’s focus on some important steps to consider while conducting your competitive analysis.
- You must begin by determining who your competitors are.
- Then, you should focus on what products they are offering.
- Research on sales tactics and the results of your competitors will help you a lot.
- While taking a look at your competitors’ pricing, don’t forget to check whether they are offering any perks.
- Analyzing how they market their products will help you decide your strategy.
- The content strategy of your competitor is an important factor to make a note of.
- Another crucial factor you must consider is the technology your competitors use.
- Evaluate the level of engagement or response to your competitors’ content.
- In today’s digital world, ensure that you analyze their social media presence, strategies, and the platforms they use.
- Performing a SWOT Analysis will help you understand their strengths, weaknesses, opportunities, and threats.
This analysis will give you the information you need to beat the competition.
Getting an Edge Over Your Competitors
You have understood the competitive analysis process and its important aspects. Let’s move on to how you can get an edge over your competitors.
- Getting Ahead of Trends Quickly
If your competitors are following certain trends and attracting more customers, ensure you get the necessary knowledge and implement those tricks quickly to gain the advantage. Try to expand further wherever possible.
- Exploiting Competitor Weaknesses
With SWOT analysis, you can know about the weaknesses of your competitors. Ensure that your customers aren’t facing the same issues; rather, go one step ahead and deliver some additional benefits to delight your customers.
- Explaining Your Offerings Better
Exploring your competitors’ websites will give you an idea of how you need to design your brand message or content. Make sure you communicate your offerings in a better way than your competitors.
- Identifying Who to Target
You can get to know about the untapped markets and find your audience from the reviewing sites and testimonials on the competitors’ websites. Then, you can reach your target audience and attract them toward your product.
- Getting Ideas to Solve Visitor Problems
The sources mentioned above also help you find ways to solve visitor problems. If you’re a small company, you can quickly make necessary changes and solve these issues, which larger enterprises cannot solve that quickly.
- Refining Your Positioning
Going through your competitors’ social media pages, websites, and other promotional materials helps you refine the way you position your brand in the marketplace. Accordingly, making the necessary changes can help attract more customers.
- Getting Help from Technology and Social Media
Knowing your competitors’ technology lets you know where you need to improve. Having a strong digital presence is also important to reach the maximum audience and showcase your brand.
If you are lacking in technology over your competitors and want to opt for digital tools for your business, feel free to contact us at Semansys.