Five Steps for Competitor Research
Competitor research works best when you follow a clear process. Start by deciding which companies matter, then collect information about their products, pricing, marketing and market activity. Review the findings at set intervals so you can spot changes that may affect your business.
Choose the Competitors You Need to Track
The first step in any competitor analysis is identifying who your competitors are. These could be businesses that offer similar products or services, operate in the same geographical area, or target the same customer base. Start by making a list of these businesses. You can use tools like Google search, industry reports, and social media platforms to find potential competitors. Remember that competition isn’t just about who’s selling similar products or services; it’s also about who’s vying for your target audience’s attention. Those who want your customers.
Compare Their Products and Services
Once you’ve identified your competitors, it’s time to look closely at their offerings. This involves analysing their products or services in detail. What features do their products have? How do they position their services in the market? What pricing strategies do they use? Do they offer any unique selling propositions (USPs)? Understanding these aspects will give you an idea of what sets your competitors apart and how to differentiate yourself.
Read More: What should be included in a competitor analysis? The Essential Components of a Competitor Analysis
Review Their Marketing Activity
The next step in a competitor analysis is evaluating your competitors’ marketing strategies. This includes their advertising tactics, promotional activities, social media presence, SEO strategies, content marketing efforts, and more. How do they communicate with their audience – what messages do they convey? How often do they post on social media? What kind of content do they produce? How well does it engage its audience? By analysing these elements, you can identify effective strategies that you might want to adopt and ineffective ones that you should avoid. Try and find out what they are working on, where they want to expand and what they are going to do next. Read More: How does competitor analysis benefit a business?
Record Their Strengths and Weaknesses
The fourth step involves assessing your competitors’ strengths and weaknesses. This can be done through a SWOT analysis, which stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths include a strong brand reputation, a loyal customer base, and innovative products. Weaknesses may be poor customer service, outdated technology, or high prices. Opportunities and threats are external factors that can affect a business. Opportunities could be untapped markets or emerging trends that a competitor could exploit. Threats might be new competitors entering the market or changes in consumer behaviour. By conducting a SWOT analysis on your competitors, you can gain insights into their potential vulnerabilities and areas where they excel.
Track Important Competitor Changes
Competitor analysis is not a one-time activity; it’s an ongoing process. Markets change constantly – new competitors emerge, existing ones evolve, and consumer preferences shift – so monitoring your competitors’ activities and markets regularly is important. Set up Google Alerts for your competitors’ names to stay updated with their latest news. Be prepared to be frustrated with Google Alerts and have to do lots of blocking. This is where the Klue’s of this world come to the fore. Follow them on social media to see what they’re posting about. Subscribe to their newsletters to get insights into their marketing tactics. Read More: How Do You Assess Competitor Analysis?
Turning Competitor Research Into Useful Findings
Competitor analysis is an important part of strategic planning in any business. It provides valuable insights to help you better understand your market, make informed decisions, and outperform your competition. Remember that the goal of competitor analysis is to imitate what your competitors are doing and find ways to do it better or differently. So use these steps as a guide, but also think creatively about differentiating yourself from the competition and creating unique value for your customers.
We are Octopus. The Global People-Powered Competitive Intelligence Agency.
Outsmart your competition. Make the unknown known. Octopus helps you gain clarity in complex markets. With clients and tentacles around the world, we deliver sharp, actionable competitive intelligence through a blend of deep primary (HUMINT) and secondary research. If you’re looking to make smarter decisions, beat the competition, and reduce uncertainty, we’re the partner you want on your side.
Frequently Asked Questions (FAQs)
What is competitor analysis and why is it important for my business?
Competitor analysis involves studying businesses that compete for the same customers — whether via similar products, services or messaging. It’s important because it helps you understand what your rivals are doing, spot gaps you can exploit and avoid being surprised by market shifts.
How do I identify my competitors effectively?
Begin by listing businesses offering similar products or services, targeting your customer base or operating in your region. Use Google search, industry reports and social media to spot indirect competitors too — those vying for attention from your target audience.
What should I look at when analysing competitors’ products and services?
Examine their features, pricing, positioning and unique selling points. Ask what makes their offer different and whether they’re serving a segment you’re missing.
What marketing aspects should I evaluate when analysing competitors?
Review their advertising, social media posts, content marketing, SEO tactics, messaging and customer engagement. Check how often they communicate, what tone they use and how they reach their audience.
How can I assess strengths and weaknesses of competitors in a useful way?
Use a SWOT (Strengths, Weaknesses, Opportunities, Threats) approach: list internal strengths and weaknesses of the competitor, as well as external opportunities and threats they face. This highlights areas you might exploit or defend against.
How do I start a competitor research routine?
Choose a small group of competitors that matter to your business. Decide what information you need and where you can find it. Keep the same research fields for each company so comparisons are easier.
What information should I collect about competitors?
Collect information that supports a business decision. This may include products, prices, customers, marketing messages, locations, partnerships and recent company activity.
How many competitors should I research?
Start with the competitors that have the greatest effect on your sales, customers or market position. A smaller list with useful information is easier to maintain than a large list with gaps.
How often should competitor research be updated?
Review fast-changing information more often. Prices, product launches and marketing campaigns may need regular checks. Company background information may need fewer updates.
Where can I find competitor information?
Useful sources include company websites, trade publications, public records, social media, events, customer conversations and industry contacts.
How do I compare competitor findings?
Use the same questions and fields for each company. This makes differences in price, products, customers and market activity easier to see.
