The term analysis refers to some conclusion or facts which we have built through brainstorming.
It doesn’t matter which segment you are operating in. if you want to make some difference & if you want people to give attention to your outcomes, you surely need to scrutinize your competitors.
What is competitive Analysis
When we talk about Competitor Analysis, the first question strikes in our mind is, What is Competitive Analysis? And what exactly are we going to do in a Competitor Survey?
In simple words, to examine the reasons behind your competitor’s success & failures with a view to converting your failures into your success is known as Competitive Analysis.
Those days are gone when it’s enough that you just do your SWOT analysis and recognize your Strengths, Weaknesses, Opportunities & Threats and accordingly convert your Weaknesses into Strengths and Threats into Opportunities. But now, in this continuously changing market, the term Competitor Analysis suggests that you need to do a SWOT analysis of both you and your contender, and then, compare them both and learn something from your competitor’s Strengths, take advantage of contender’s Weakness, grab Opportunity before your competitor grabs it take advantage of competitor’s Threat by considering it as an opportunity for you.
There’s another conception called Industry and Competitive Analysis which includes an analysis of a whole industry whether it is Manufacturing, IT, Banking, Engineering, or else.
But, before we jump into a well of Competitive Analysis, a very basic question that needs to be answered is, Who are your Competitors?
Who Should be Considered as Your Competitor
Each & every organization functioning in the market is not always your competitor. We can bifurcate competitors in two parts- Close Competitors & Secondary Competitors.
Close Competitors – Those who have the same products & services like you should be treated as your close competitors and you need to keep a close eye on their-
- Products and their quality
- Pricing policy
- Market share
- Services and offers
- Advertisements or other marketing strategies
- Policies they adopt for employees
- Social media influence
Secondary Competitors – Those who don’t have exactly the same products as you but whose products can be substituted with yours, are your Secondary Competitors. Currently, they may not directly affect your business but the chances of their becoming your close competitors are very high. Here, you need to inspect your Close Competitor thoroughly while Secondary Competitors need to be paid less attention.
How to do Competitor Analysis
To eliminate the competition, first, you need to identify your competition. And that’s the first step of How to do Competitor Analysis. After that, you need to follow some steps like-
- Examine your competitor’s products and find the similarities & differences between theirs and yours.
- Find what position they acquire in the market. Are they a leading brand? Or are they standing a step behind than you? Or both are standing on the equal stage?
- Have a look at their marketing practices.
- Discover their websites, find their roots, and journey.
- Observe their presence and influence on social media platforms.
- Try to estimate their future plans.
- Understand their mechanism of manufacturing and supply cycle.
- Check their policy for after-sale services and customer support.
- Try to figure out the employee satisfaction ratio of their firm.
- Know their SWOT and compare it with yours.
- Read their consumer’s minds.
Well, the whole process seems really strenuous, right? Let’s gate a sigh of relief. A Competitor Analysis Tool will help you make this crucial process easy. You can conduct your analysis by using Competitor Analysis Tools such as SpyFu, QuickSprout, SEMrush, SimilarWeb, Alexa, etc. CrunchBase, Glassdoor, and indeed are some other tools where you can get details of an organization’s foundation or information and reviews of their employees.
Competitor Analysis Framework
Competitor Analysis Framework is basically a structure where you can arrange the bunch of information you have collected in your Competitor Survey, in an organized manner.
Source : Mykpono.com
To make our concept more clear, let’s take a practical Competitive Analysis Example.
Source : slideshare.net
Why Competitive Analysis is Needed for Business Growth
Here, a simple & clear Competitive Analysis Example where comparison of three brands are made. The quality certification and quantity of butter provided by everyone are the same. But, Amul has won the game by laying the price down.
What is the expediency to work your fingers to the bone in analyzing your competitor? It is not of any use if you have done a majestic analysis just on the paper. It will be worth only when you will use the drawn conclusions to grow your business. By doing this, you can-
- Attract more consumers by making your position stronger compared to competitors.
- Adopt a more effective marketing strategy and leave behind the less effective one.
- Grab your contender’s consumers.
- Make a stronger bond with your consumers, so that they don’t switch your product.
- Adopt the ways which are used by your competitors after knowing that they are the reason behind their success.
- Take advantage of loopholes in the competitor’s plan of action.
- Make an effort to find the mistakes of your contender and take care that you don’t repeat the same.
- Provide something more to consumers which your competitors are not providing.
Competitive Analysis is worth only when it is conducted as an unending process. It lets you stand a step ahead of your competition. So Scan your competitor and find your Treasure.