How to do competitive analysis if you have not done it before
Competitive analysis is an essential part of any business strategy, as it allows you to understand the strengths and weaknesses of your competitors and identify areas where you can improve your own offering. In this blog post, we will explore the best ways to research your competitors and gather information to inform your competitive analysis. Put simply, how to do competitive analysis if you have not done it before.
First steps
One of the first steps in researching your competitors is to identify who they are. This may seem obvious, but it is important to be as specific as possible in your definition of a competitor. For example, if you are a small retail store, you may consider other small retail stores in your area to be your competitors. However, you may also want to consider larger retailers, online retailers, and even stores that sell similar products but are not in the same location. Once you have identified your competitors, the next step is to gather information about them.
Four basic steps
There are several ways to do this, including:
1 Online research: This is one of the easiest and most accessible ways to gather information about your competitors. You can use search engines, social media, and industry websites to find information about your competitors’ products, pricing, marketing strategies, and more.
2 Surveys and customer interviews: Surveying your customers and conducting interviews can provide valuable insights into what your competitors are doing well and where they are falling short. You can also use this information to identify areas where you can improve your own offering.
3 Market research reports: Market research reports can provide detailed information about your competitors, including financial data, market share, and growth trends. These reports can be expensive, but they can also be a valuable resource for understanding the competitive landscape.
4 Direct observation: This is one of the most effective ways to gather information about your competitors. By visiting your competitors’ stores, attending their events, and speaking with their customers, you can gain valuable insights into their products, services, and marketing strategies.
Analysis
Once you have gathered all the information about your competitors, the next step is to analyse it and identify areas of improvement. This can be done by comparing your own products, services, and strategies to those of your competitors. Look for areas where your competitors are excelling and areas where they are falling short, for example, if your competitor has a strong online presence, but you do not, this may be an area where you can improve. Or, if your competitor has a more extensive product line, you may want to consider expanding your own product line. It is also important to identify areas where you excel and where you can differentiate yourself from your competitors. For example, if you have a strong reputation for excellent customer service, you should highlight this in your marketing and advertising efforts.
How to do competitive analysis if you have not done it before
In conclusion, researching your competitors is an essential part of any business strategy. By identifying your competitors, gathering information about them, and analysing it to identify areas of improvement, you can gain valuable insights into the competitive landscape and develop effective strategies to compete effectively. Remember, that a regular competitor analysis allows you to stay ahead of the curve and make informed decisions for your business.
Words: Ben East
Image: Lindsay Henwood
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