• September 18, 2020

Why Competitive Analysis is Badly Needed for Business Growth In 2022

5 minutes to read

Why Competitive Analysis is Badly Needed for Business Growth In 2022

The term analysis refers to some conclusion or facts which we’ve built through brainstorming.
It doesn’t matter which segment you’re operating in, if you would like to form some difference & attention to your outcomes, you surely got to scrutinize your competitors. 

What is Competitive Analysis? 

When we mention Competitor Analysis, the primary question strikes our mind is, what’s Competitive Analysis?  And what exactly are we getting to neutralize a competitor Survey? 

In simple words, to look at the explanations behind your competitor’s success & failures to convert your failures into your success is understood as Competitive Analysis. 

Those days are bygones when you simply just do a SWOT analysis and recognize your Strengths, Weaknesses, Opportunities & Threats and accordingly convert your Weaknesses into Strengths and Threats into Opportunities. 

But with the evolution, the term Competitor Analysis suggests that you simply got to do a SWOT analysis of both you and your contender, and then, compare them both and learn something from your competitor’s analysis. 

There’s another conception called Industry and Competitive Analysis which incorporates an analysis of an entire industry whether it’s Manufacturing, IT, Banking, Engineering, or else. But, before we jump into a well of Competitive Analysis, a really basic question that must be answered is, who are your competitors? 

Who should be considered as Your Competitor? 

Each & every organization functioning within the market isn’t always your competitor. We will divide competitors into two parts- Close Competitors & Secondary Competitors. 

Close Competitors – those that have equivalent products & services such as you should be treated as your close competitors and you would like to stay an indepth eye on them

  • Products and their quality
  • Pricing policy
  • Market share
  • Services and offers
  • Advertisements or other marketing strategies
  • Policies they adopt for workers
  • Social media influence

Secondary Competitors – those that don’t have precisely the same products as you but whose products are often substituted with yours are your Secondary Competitors.  

Currently, they’ll indirectly affect your business but the probabilities of their becoming your close competitors are very high. Here, you would like to examine your Close Competitor thoroughly while Secondary Competitors got to be paid less attention. 

How to do Competitor Analysis 

To eliminate the competition, first, you would like to spot your competition. And that’s the primary step of the way to do Competitor Analysis. 

After that you can: 

  • Examine your competitor’s products and find the similarities & differences between theirs and yours. 
  • Find what position they acquire within the market. Are they a number one brand? Or are they standing a step behind than you? Or both are standing on an equal stage? 
  • Have a glance 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 plans. 
  • Understand their mechanism of producing and provide a cycle. 
  • Check their policy for after-sale services and customer support. 
  • Try to work out the worker satisfaction ratio of their firm. 
  • Know their SWOT and compare it with yours. 
  • Read their consumer’s minds.

Well, the entire process seems strenuous, right? Let’s gate a sigh of relief. A Competitor Analysis Tool will assist you to make this significant process easy. You’llconduct your analysis by using Competitor Analysis Tools like SpyFu, QuickSprout, SEMrush, SimilarWeb, Alexa, etc. CrunchBase, Glassdoor, and indeed are othertools where you’ll get details of an organization’s foundation or information and reviews of their employees. 

Competitor Analysis Framework 

Competitor Analysis Framework is essentially a structure where you’ll arrange the bunch of data you’ve got collected in your Competitor Survey, in an organized manner.

To make our concept clearer, let’s take a practical Competitive Analysis Example.

Why Competitive Analysis is required for Business Growth? 

Here, an easy & clear Competitive Analysis Example where a comparison of three brands is made. The standard certification and quantity of butter provided by everyone are equivalent. But, Amul has won the sport by laying the worth down. 

What is the expediency to figure your fingers to the bone in analyzing your competitor? It’snot of any use if you’ve got done an imposing analysis just on the paper but to conclude to grow your business.  

By doing this, you can-

  • Attract more consumers by making your position stronger compared to competitors. 
  • Adopt a simpler marketing strategy and leave behind the less effective one. 
  • Grab your contender’s consumers. 
  • Make a stronger bond together with your consumers so that they don’t switch your product. 
  • Adopt the ways which are employed by your competitors after knowing that they’re the rationale behind their success. 
  • Take advantage of loopholes within the competitor’s plan of action. 
  • Attempt to seek out the mistakes of your contender and lookout that you simply don’t repeat an equivalent. 
  • Provide something more to consumers which your competitors aren’t providing.

Competitive Analysis is worth only ifit’s conducted as an unending process. It allows you to stand a step before your competition.  

So, scan your competitor and find your Treasure. 

Kandarp
Founder & Content-chief

Entrepreneur | Ambitious Writer | Helping businesses meet their branding and advertising needs through a content-driven approach