Why market and competitor analysis is good for your business?
This article asks why market and competitor analysis is good for your business? Market and competitor analysis are two essential tools to understand markets and competitors. Learn more about them here! Market and competitor analysis are tools business use to understand markets and competitors. These tools allow you to identify trends in your industry. And then how your company compares to others.
What is Market analysis?
Market analysis assesses your market, including:
- Market size in terms of volume and value
- Assessing customer segments buying habits
- The general business environment
- Associated regulations
- Barriers to entry
What is Competitor Analysis?
Competitor Analysis evaluates who your competitors are. And then define their strategies and understand their weaknesses. Then compare them to your own operation and offering. Learn how to counter their strengths and exploit their weaknesses.
Find Out More About Your Competitors
A good place to start when looking at your competitors is with Google Trends. This free tool allows you to compare search volumes for different terms. Across countries to see what people are searching for on Google itself.
Understand Your Competition.
Once you’ve identified your competition, you need to understand how they operate. What do they offer? How do they position themselves? Where do they advertise? These questions will help you determine where you should focus your efforts.
Identify Your Target Audience.
You also need to identify who your ideal customer is. This includes understanding:
- What motivates them
- What they value
- And what they expect from you
Determine Your Niche.
Once you’ve identified your ideal customers, you should determine your niche. A niche is a small group of people with similar needs and wants, and it’s an area where there is little competition.
How to define my market?
To define your market start by answering these basic questions:
- What is driving demand for your product or service need?
- Why will your offering sell?
- Uncertainty to enable more informed strategic decisions. It gives you the ability to differentiate yourself. And stay ahead of the competition, and often can be the unspoken, hidden key to success.
How to do Competitor analysis in eight steps
The following eight steps will get you a solid start with your Competitor Analysis:
1: Set your analysis goals
2: Define your market
3: Create a list of your direct competitors
4: Conduct secondary and primary research
5: Analyse competitors
6: Summarise competitor product and market strategies
7: Compare and contrast competitors with your products
8: Maintain up to date competitive analysis
What are market analysis questions?
- What’s the market size?
- Is the market expanding?
- Or is it contracting?
- How’s the industry value chain structured?
- Is the competition intense?
- Is there a threat of new entrants to the market?
- How many potential buyers are there?
- What are the barriers to entry?
- What’s the supplier bargaining power look like?
- And what substituted products could customers use?
Why market and competitor analysis is good for your business
In conclusion, to why market and competitor analysis is good for your business. Market and competitor analysis are essential tools to understand market and competitors. By understanding your competition, you can set your business up for success. By adapting and changing your strategies to stay ahead of the game. Make sure to conduct regular analyses to keep updated on any changes in the market. And within your competitor’s strategies.