Whatever you did, whatever you’ve invented, there’s surely at least one other smart guy in the world who came up with everything before you. In order not to reinvent the wheel and not to fail, try to use such a miraculous tool as competitive analysis.
In any business, there is a notion of competition. In order to succeed in your field, and especially in the field where different digital channels are involved, you need to know your competitors and be able to analyze their actions. So, what is competition analysis?
Most sources suggest that competitive analysis definition is a collecting and analysing of information about competing companies. It would seem that it’s not difficult, you can do it yourself. But simply collecting information about competitors is not enough. Frequently the presence and surface monitoring of the site and social networks of competitors is also not enough. We recommend you to conduct such research on a regular basis, because it helps in competitive trends definition.
It is necessary to constantly analyze the industry in which you work, its products and the actions of various companies in relation to these products. By getting to know your competitors in the industry analysis you will secure yourself financially. For everyone who starts the game on an uncharted field, it is necessary to study the competitive landscape in detail. We offer this competitive analysis meaning “Competitive analysis is the first step before product marketing strategy development. It is a training before the launch of a new product”.
Competitive analysis in marketing is aimed at:
Involve your business in competitive analysis you thereby help it to raise sales standards, because you will always know that there is someone breathing down your neck.
Do you provide the necessary and quality services or goods, and your clients do not come or even leave you? Even those who have been with you for quite a long time? In order to avoid such situations there is a competition research.
With the help of competitor analysis you can:
In order for this analysis to be effective, we offer you our own expertise.
After we have figured out what competitive analysis is and why it is necessary let’s move on to the main thing – instructions for conducting competitive analysis. For your convenience, you should use a competitive grid of analysis in comparison of several similar products. There you will record all the information and, accordingly, compare and analyze it.
To begin with, you should determine for yourself what kind of analysis is necessary – complex analysis or you want to study a separate component. Let’s say what range of products and services is offered to the market a competitor, what positioning it has chosen, what USP competitors, its pricing policy. Therefore, the things we do is:
In case if our goal is to create a unique selling proposition for our new product, then the first thing we study is how the product is positioned by other companies, its USP and what price it has. We do not overload ourselves with secondary information. The search will take more time, and the research will not justify itself.
We very often notice that the business owners do not know their real competitors. You may orientate yourself towards a few prominent companies in your niche and not suspect that your real competitors are much smaller, but more agile. Or vice versa, you underestimate yourself and do not dare to confront bigger fish. Essentially, this step implies that you must make sure that the competitors on which you spend your time are worth it.
We make a table with the main competitors, in a column we write down the criteria that interest us (for this purpose it is necessary to return to point 1). It is worth dividing these criteria into qualitative and quantitative.
Quantitative criteria are measured on a scale, we recommend taking 10 points scale. As a result, you will find out which of your competitors is the most competitive.
Qualitative indicators are more interesting; criteria that cannot be quantified are taken into account here. Let’s say positioning features, branding, types of communications, etc.
To do this, you study information about your competitors and fill in the table on the following items:
By collecting this data you will have an understanding of the main strategy and tactics of your competitor companies. Then you will be able to predict their next steps.
Content is the king and it’s the truth. What do you say on behalf of your company, how you do it and why you do it – need to be in the first place. The second is to listen to what others say, what they say and how they do it. That’s the point of analyzing your competitors’ content. But the content always goes hand in hand with design. While studying the text part, always correlate it with the visual. When scanning a competitor’s content and design, pay attention to it:
In this analysis, it is important to select samples of different types of content produced by the competitor. From daily articles to thematic and situational videos and analyse them by the above items. This analysis will help you learn about your competitor’s product promotion strategy.
At the end, gather all the data and do a general SWOT analysis on strengths, weaknesses, competitors opportunities and threats that are most harmful to you. Use a table with qualitative and quantitative indicators for this purpose. Identify your competitor’s weaknesses and you can immediately draw conclusions about the effectiveness of your strategy. And try to get ahead of them.
By examining your competitors in more detail, you will be able to highlight where they get where they lose. To adopt the best practices of competitors should audit your own site or application. And to compare your product with a competitor. This will help to improve not only the quality of the user interface, content, but also improve the quality of interaction with your customers.
Correctly made analysis of competitors – this is the basis for improving the performance of your business. Competitive analysis is a great strength in the form of new knowledge. Regularly conducting this research will certainly have an impact on your conversion. Essentially, investing in your competitors will pay off for you by adding to your customer base. Each time you analyze your competitors, you draw certain conclusions and introduce innovations to your work.
If you doubt that using our recommendations you will be able to conduct this research on your own, please contact us for advice.
We will help you not only to conduct a competent analysis of the firms you are interested in, but also give direct recommendations for further work in this direction.
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