To be able to compete and win, you should have a competitive advantage
Definition of Competitive Analysis
Competitive analysis occurs when the company analyzes its competitors to gain information of how the company compares to competition in areas such as size, market share and profitability. Competitive analysis is an important aspect of business strategy. It assists the company identify its strengths and weaknesses in comparison to competition. It is a way for a company to evaluate current competition, anticipate future competition and establish rivalry. Every company must stand out in the crowd. Use a competitive analysis to evaluate your competitors and figure out how you can beat the competition.
How To Conduct a Competitive Analysis
The process of creating a competitive analysis involves evaluating internal and external factors that play a role in the success of your own business. It is imperative to utilize resources and perform some research as you complete this task. While conducting a SWOT analysis and PEST analysis are important steps, there are a few other things to include in your competitive analysis. Before starting your competitor analysis, it is helpful to outline the underlying strategy of the company you will be analyzing. This can help guide you to where you should direct your attention and efforts when using a template or conducting your own unique analysis. Having an outline can help you stay on target with what you need to complete during the creation of a competitive analysis, regardless of the source.
Examples of Competitive Analysis
Competitive analysis helps you understand your market, identify the gaps in the current offerings of your competitors, and figure out how to bridge these with the features of your product.It is a critical part of your product development process and one that should begin even before you register your business. Competition helps you focus on differentiating your product from the competitors in the market. Using research techniques such as secondary and primary sources, you can learn about the size of the market, growth opportunities, customers’ preferences and concerns, pricing trends as well as the strengths and weaknesses of major players which will help you develop a game plan for short term as well as long term success.