Whether you are in any industry analyzing your competitor is as necessary as planning to reach your business goal.
You must be thinking why do you need that?
The answer is simply conducting a routine competitor analysis will help you to understand the weaknesses and strengths and to identify gaps in the marketplace. Not only this it will also help you to enhance your products and service, better serve your customers, and increase profits.
Now, their question arises here, how will you analyze your competitor in the vast industry?
Don’t worry, we have covered you, here in this article we will discuss a few best ways to conduct a competitor analysis.
What Includes Competitor Analysis?
It is important to analyze your competitor at various stages of your business to make sure that you are providing the best products and services and at the right price to your customers. A good competitor analysis will help you to know more about your business and your competitor’s business from the customer’s point of view to pinpoint the areas where you can improve.
1. Feature Matrix
Find the features and specifications of your competitor’s product and maintain all this information in a sheet. This will help you to visualize how companies stack up against each other.
Check how much competitors are charging for their products and services to analyze where they fall on the quality vs. quantity spectrum.
3. Market Share Percentage
This will help you to know about your main competitors in the market. Never exclude big stick competitors in the market, as they will teach you how to succeed in the industry.
The next thing which you need to analyze is the marketing strategy that your competitor has implemented. Check their social media accounts, websites, and the type of events they are sponsoring, their SEO strategies, the type of campaigns they host, and how promising their tag lines are.
What is unique about your competitor and what type of qualities they are highlighting in the advertisements.
Identify what is well about your competitors and what is working for them. Do they have superior products? Or they have the best marketing strategy and brand awareness.
Identify where your competitor is lacking or the area they are lacking? For instance; do they have a weak social media strategy or they are licking in the online store? Is there an outdated website? This information will help you to lead in the market and will give you a competitive advantage.
Check the location of your competitor and the market they are serving. Are they brick-and-mortar companies, or are they grabbing most of the customer’s attention online?
Evaluate your competitor’s work culture, customer reviews, and employee satisfaction. Are they still the business which they have the market on the year when they have established or they are modern startups? Read employee reviews to know about company culture.
10. Customer Reviews
This is one of the important analyses you need to do to get more insights into your competitor. Read their customer’s reviews and know what they like and dislike. In the star rating system of 5 stars, 3 stars, and 1-star ratings. Look more for 3 stars as they are more often the most honest.
Why is Competitor Analysis Important?
Competitor Analysis is Important to analyze the competitors through the product lifecycle to help you to grab the information about market saturation, business opportunities, and industry best practices.
Competitor analysis will help you with offense and defense. Comparing competitor’s businesses with your brand shows where you can improve and where you are excelling from the competitors. It will help you to know about new strategies which will help your business to lead in the industry.