How to take your competitor analysis to the next level
Competitor analysis is essential to any business plan, be it a startup, an established business or a global brand. It provides business owners and entrepreneurs with crucial insights and a detailed analysis of how competitors’ organisations operate in different market scenarios and what strategies they use to perform effectively in their target market.
Key steps a competitor analysis
An in-depth analysis and understanding of your competitors’ insights can reveal a lot of information that should never be overlooked. Following are the key steps to take your competitor analysis to the next level –
- Identify your target market: All kinds of businesses rely on attracting customers, which is why it is the first & foremost step to be well aware of your target audience. Your competitors’ target markets should be identified by thoroughly researching competitor websites, marketing campaigns, social media accounts, and others. Digging into client and customer reviews can help you find customers who are most and least impressed by what competitors offer. Knowing the customer mindset helps understand business marketing efficiently, thereby can help you define your ideal customer profile.
- Identify your direct competitors: You need to split your competitors into direct and indirect ones. Rather than just the company name and descriptions, you need to gather more statistical information. Direct competitors are businesses that provide similar products or services to yours. Therefore, determining their market rank can help you evaluate their threat to your business.
- Do a SWOT & PEST analysis: A SWOT analysis stands for strengths, weaknesses, opportunities, and threats. PEST analysis is short for political, economic, social, and technological analysis. These methods can gather information about a company’s current position, future potential, and, most importantly, the external factors that can influence business success.
Competitor analysis is not spying
- Tracking and spying on your competitors: Observation is a must during analysis. It’s not spying as all is done within legal and ethical means. After ranking up your direct competitors, you need to find out what they do to stay competitive and maintain their market position. Tracking gives you valuable insight into an organisation. Do check their websites regularly and find out the changes they made to attract more customers. At the same time, keeping an eye on your competitors’ ad strategies is important. Social media is a powerful tool in a marketing campaign. You need to determine whether your competitors are running ads, promotions, or using influencer campaigns to market their business. Tools like AdSpyder are used by several businesses to spy on their competitors’ ads on all the major social media platforms, including YouTube, Facebook, Instagram and Google, and also on search engines like Yahoo and Bing.
- Find a unique marketing strategy: The product does not always make a difference. Marketing strategies play a significant role in helping the company stand out in the competition. Understand the strategy implemented by your competitors and figure out your own so that the targeted customers pick your product or service over them.
How to take your competitor analysis to the next level – explore
In conclusion, competitor analysis is a powerful tool for any business. By understanding competitor strengths and weaknesses, businesses can identify what products and services they should focus on to gain an edge in the market. Additionally, analysing competition can provide invaluable insight into pricing, marketing strategies, target audience and more. With this knowledge, businesses can make informed decisions that will ultimately lead to success. In order to get the most out of competitor analysis, it is important to be thorough and consider all available information.