What is Competitive Analysis?

Whether you’re playing a game, participating in a contest, or running a business, there’s one thing we must always do – check out the competition. 

And it makes sense! Once we know what the others are doing, we can use this to our advantage and make smarter decisions. Plus, this also allows us to understand exactly where we are, our brand’s position in our industry, and well… our opportunities for growth. 

So, let’s find out what a competitive analysis is, how to do competitor research, and what competitor analysis tools you can use. 

The process of competitive analysis refers to gathering information regarding other companies in your industry – whether it’s about their products, their marketing strategies, their prices, or even their overall user experience. Based on this data, businesses try to maximize their strengths and minimize their weaknesses to stay ahead of the competition. 

In simple words, competitor analysis means comparing ourselves to other companies to identify the gaps – in our strategy, in their strategy, and in the entire industry. 

But let’s find out what isn’t a competitor analysis:

• Simply copying everything successful competitors do.
• Just trying to have a lower price than other competitors.
• A one-time task that we can just tick off our list and move on.

As businesses, we should remember that competitor research is not just a cookie-cutter approach. It depends on your goals, your industry, your values, and your overall strategy. For example, a SssS company will probably focus on the features that its competitors have. A restaurant, on the other hand, might pay attention to the menu, the location, and even the pricing. The same goes for a fashion brand that will analyze the latest trends. The bottom line is that it’s all up to you.

So, what should you include in your competitor analysis?

• Company Profile: Take a look at the company itself – where is it located? How much revenue does it generate? How are they seen in the industry?
• Products: Analyse what they are selling – how many products do they sell? How do they differentiate themselves from their competitors? What features and capabilities do their products offer? Answering these questions will also give you some insights into what is lacking in your industry so that you can use it to your advantage. 
• Pricing Plans: Look at their pricing model so that you won’t overcharge or undercharge your future customers. Plus, you can analyze other pricing strategies such as pricing tiers, pricing options, discounts, and so on.
• Target Audience: Now comes the important part – who are their target customers? What demographics do they serve? What are their preferences, interests, needs, and even pain points? How loyal is their customer base? Also, think about how easy it would be to break into that market.
• Marketing Campaigns: Now it’s time to understand how to get to our target audience. What channels do they use? Do they focus on traditional advertising, digital marketing, content and SEO, or other methods? Maybe they've got some other unique methods up their sleeve?
• Strengths and Weaknesses: What is their competitive advantage? What makes them unique, and why do customers want to buy from them? The answer can come from all the other features. 

Are you ready to take your business to new heights through ongoing collaboration? Our dream team focuses on developing a competitive analysis that will take your business to the next level. Whether you’re looking to launch your business or rebrand your existing company, we provide top-class solutions that will set you apart from your competition.

Contact us today to get a personalized quote for your business needs, and let’s start building the path to your next level of success together!