Competitor analysis is a mandatory step that should be completed before you decide to apply a certain marketing strategy. This sort of analysis is essential for the business owners that want to obtain a clear picture of what their competitors are doing. Competitor analysis will enable you to improve the products or services that you offer. It will give you an edge over the competition by preparing you to respond appropriately to market risks. Furthermore, an effective analysis of your competition will permit you to develop a good defense mechanism against any market fluctuations.
But what are the steps that a business should follow for the implementation of a reliable analysis of its direct competitors? Keep reading this article for a comprehensive answer to this question.
Define your own work industry
This is the starting point when you have decided to initiate a competition analysis. A thorough online search should permit you to identify your direct industry opponents. Another source could be the industry news sites and blogs. You should study them closely because they offer valuable insight into existing or emerging brands which you should be aware of. Another alternative to knowing better your industry competitors would be the direct approach of existing customers. You can perform a survey and ask them where they shop and how they find the products from your direct competitors in terms of quality.
Discover your customers tastes
When it comes to selling a product or commercializing a service, customers are the ones that matter most. That is why they should be the core of any marketing strategy. Look at your existing customers and try to understand who they are and what their expectations might be. If you cannot obtain this sort of information through other sources, then you should conduct a survey. Include in your survey questions that will help you understand who your typical customer is and how they shop.
Establish the key success factors in your industry
This is one of the most important steps in the whole competitor analysis process. In every industry specific challenges can be encountered. Your business success is directly influenced by the singularities of each industry. So, make sure you detect them fast and you learn how to maximize their potential in order to attract more and more customers.
In view of all the above, the benefits of conducting competitor analysis are clear. Not only will you identify who you are competing against but you will also be able to identify the strengths and weaknesses of businesses from the same segment. In consequence, you will be able to take the decisions needed to improve your competitive position within the market.