If you’re looking to get ahead of the competition, then conducting a proper competitive analysis is essential. A competitive analysis is a process of researching and understanding the strengths and weaknesses of your competitors in order to gain an advantage over them. It’s a vital part of any business strategy and can help you identify opportunities and threats in the marketplace
Competitive Analysis Highlights Crucial Gaps In Your Strategy
You cannot optimize what you don't know. The world of marketing has so many tools and strategies that it can be overwhelming finding which one you need to focus on at any given time.
One way to bridge this knowledge gap is by doing a comprehensive analysis of your competitors' strategy to find the gaps between your business and theirs. We have much to learn from our competition in the way of keywords, website design, paid ads strategy, content marketing, the list goes on and on.
A growing business needs to keep track of more and more variables to compete, and there is no better way than utilizing the experience of your competition to bolster your own efforts. It's a double win for your business, and a definite win for your market share.
"Our top competitors were frequently outselling us, and we needed to find out why. ProSales Connection gave us the information to compete. We never thought a strategy shift could be so subtle and yet so integral to our industry."
- Sales Coordinator, B2B Tech Company
How to Conduct a Proper Competitive Analysis:
1. Identify Your Competitors
When it comes to identifying your competition, the best methods involve researching the market and looking for companies that are selling similar products and services. Conducting a thorough competitive analysis can help you understand what your competitors are doing, and what strategies they are using to gain an advantage over you.
Start by using Google to search for companies that offer the same services or products as yours. You can also use various keyword research tools to find out what your competitors are targeting, and which keywords they are ranking for. Additionally, you can use social media platforms like Twitter and LinkedIn to search for competitors and see what they are talking about.
You can also research the industry and analyze the competition’s product offerings and pricing structure to get a better understanding of the market. This can help you identify potential gaps in the market and develop strategies to target them. Additionally, you can look at customer reviews to see how your competitors are performing, and what customers are saying about their services.
It’s also important to look beyond just the direct competitors, and identify potential indirect competitors. This could include other companies that are targeting the same customer base, or offer similar products and services. Understanding these indirect competitors can help you gain an insight into the competitive landscape.
2. Analyze Their Strengths and Weaknesses
Once you’ve identified your competitors, it’s time to analyze their strengths and weaknesses. This can be done by looking at their pricing, products, services, marketing strategies, customer service, etc. It’s important to look at both their strengths and weaknesses in order to gain an advantage.
Start by analyzing their pricing structure and how competitively priced they are compared to you. You can also compare the features of their products and services to yours to see how they stack up. Additionally, it’s important to look at their marketing strategies and see if they are effective or not.
You can also analyze their customer service and see how responsive they are to customer inquiries. This can give you a good indication of how well they treat their customers, as well as what areas they may need to improve on. Additionally, you can research their online presence and see if they have any reviews or feedback from customers that could provide insight into the quality of their services.
Finally, it’s important to analyze any potential weaknesses in your competitors' product offering or service delivery. This can help you identify opportunities for improvement that could give you a competitive edge over your rivals.
3. Identify Opportunities and Threats
After analyzing your competitors’ strengths and weaknesses, it’s time to identify opportunities and threats in the marketplace. This can be done by looking at trends in the industry, customer feedback, and any other relevant data.
Start by researching industry trends and analyzing what is driving customer demand. This can help you identify areas for growth, as well as potential risks that could impact your business. Additionally, you can use customer feedback to get an understanding of what customers are looking for, and how satisfied they are with their current products or services.
You can also research your competitors to see if they are taking advantage of any new opportunities or launching any new products or services. This can help you identify potential areas of improvement that could give you a competitive edge over them. Additionally, it’s important to analyze any potential threats that could have a negative impact on your business such as rising costs or competition from new entrants in the market.
Analyzing these opportunities and threats can help you identify areas for improvement that could give you an advantage over your competitors.
4. Develop a Strategy
Once you’ve identified opportunities and threats, it’s time to develop a strategy. This should include how you plan to capitalize on the opportunities and mitigate the threats.
Start by defining your target market and determining what makes your offering unique. This can help you identify the areas of the market that you can target and how to differentiate yourself from your competitors. Additionally, you can use customer feedback to see what customers are looking for in terms of features or services, and how your offerings should be tailored for them.
You can also use pricing strategies such as bundling or discounts to gain an advantage over competitors. Additionally, it’s important to analyze your competitors’ strategies and see if there are any areas of improvement that could give you an edge over them.
Finally, consider launching a marketing campaign to promote your offering and build brand awareness. This could involve using social media, online ads, or email campaigns to reach potential customers. Developing a comprehensive strategy will ensure that you have a clear plan of action for gaining an advantage over your competitors.
Conducting a proper competitive analysis is essential for any business looking to get ahead
of the competition. By following these tips, you can gain a better understanding of the
marketplace and develop a strategy to gain an advantage
If you're looking for more information on your Competition, check out our Competitive Reports, and don't hesitate to reach out! Our team of experts will give you a zero-cost 30-minute consultation that can send you away with actionable strategy to grow your business sustainably. Contact us online, or book a meeting today.