The world is a big competition. In order to be on top, one should not run out of ideas. We cant deny how crucial competition can be in the business, that’s why a Competitive Analysis is a must when you have a business. Through this, you can out-do your competitors.
In this blog, you will learn how to do a competitive analysis.
1. Select 7–10 competitors
To research competitors and all kinds of industries, search Google, Amazon, and Alexa. To make a list relevant matches without spamming your Chrome browser with dozens of irrelevant instances, strategize on this formula:
- Sell similar or different types of products
- Have a similar business premise
- Market to similar and slightly different audience demographics
- Are both new to the marketplace and more experienced
Compiling a list of competitors by geographical region can help provide context, while cutting down on unnecessary detail.
2. Determine competitive advantage and offerings
Take into consideration your competitors’ messaging. They can be evaluated by considering the competitive advantage they possess and the offerings they employ. Look to see what’s being challenged or what is of most importance to their clients.
Many online companies are leveraging data and machine learning to create new revenue streams from a unique advantage that can’t easily be replicated by their competitors. The clothing retailer connected with clients through beautiful styles, fast shipping and highly qualified product development offers a personalized experience for specific demographics.
Review online similar companies and ask yourself why they are successful. Is it their pricing, product offerings, or digital media strategy? While competitors might be providing the same goods and services at a lower cost, remember that a strong focus on sustainability can win over customers for you.
3. Understand how your competitors market their products
A review of your competitors’ marketing can save hundreds or even thousands for new companies. Companies look at a wider array of metrics and include ecommerce, conversions, SEO, and content strategy in their marketing budgets.
Competition is intense, but competition isn’t just about pressing triggers. It’s about using the benefits of different marketing channels to position yourself for a winning brand.
It’s important to stay on top of the marketing strategies of your competitors for this purpose. Expanding your knowledge about what strategies and methods lead to success helps you dominate your market with quality content.
You can do this by:
- Following them on social media
- Purchasing a product
- Subscribing to their blogs
- Signing up for their newsletters
Review how they target customers, serve support on social media networks such as Facebook to drive conversions, and craft an attractive offer for a product.
4. Conduct a SWOT analysis
Conducting a SWOT analysis can help you establish your priorities. The data you collect can provide insights into areas in which your company isn’t succeeding, offering tangible potential improvements.
Inability to recognize available opportunities focus on the present. They are elements you can’t control and may change over time, including:
- Product offering
- Number of employees
However, you can control things inside your writing process. These include:
- Consumer trends
- Market demand
- Competitors’ products
- Market size
The model will help open up strategic and monetary data so that you can see your business grow better, but also recognize room for improvement in times of need. You can use this model in your break-even analysis as well in a completed business plan, but be sure to include it separately because it is useful to have available.
5. Create a spreadsheet
Within a spreadsheet, you record different competitors’ data in categories. You may use an example like the one below. If a distinguishing characteristic is noted by you (such as in this case, when they each went public), you can create a column within the document to distinguish each competitor’s difference.
- First-time visitor offers
- Price range
- Social media engagement
- Product offerings
With these helpful step by step guides, may you know what works and what does not work for you.